# Child care expenses do not affect return - are they dependent on salary?



## firsttimer (Feb 9, 2012)

Hi,

I would appreciate some advice. The situation is as follows:


My 2011 net income was over 81$k. 
My wife wasn't working and only received $1,200 in UCCB. 
Our child went to daycare, for which we paid over 7$k. 

Regardless of whether I claim these expenses on my return (eligible as per _Form T778, Part C_ /my wife was in school full-time/), or on hers, my total refund is not affected at all. My wife also was using public transportation, and the annual transit cost deduction also doesn't affect the refund. 

Am I doing something wrong or is it the total/net income level that prevents me from claiming those deductions?

Thanks in advance.


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## Homerhomer (Oct 18, 2010)

Your wife doesn't have earned income therefore child care can't be claimed, however your case is an exemption because your spouse was full time student. The software you are using doesn't take this into consideration, you will need to override to ensure you are claiming the child care.
Read part C of this guide.
http://www.cra-arc.gc.ca/E/pbg/tf/t778/t778-12e.pdf

Public transportation won't make any difference because her income is lower than total tax credits for her.


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## firsttimer (Feb 9, 2012)

Thanks. I am using TurboTax and StudioTax (just to ensure that all figures align) and it does look like I am claiming the child care expense. Allowable deduction (T778 Part C) is calculated as the lesser of either the amount paid in child care (line 7 in Part B) *or* line 13 of part C (which is 0). 

Here's the form: http://i.imgur.com/pWVMQan.png


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## Charlie (May 20, 2011)

I think you need to add the number of weeks to line 12 on part B.


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## MoneyGal (Apr 24, 2009)

Looks like you are showing us your *wife's* return. You need to deduct the expenses from *your* return.


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## Charlie (May 20, 2011)

you should also be able to claim the transit credit for your spouse....just make sure you enter it on your return (as she cannot use it). And transfer across tuition and/or education and text book amounts too if you haven't done so already.


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## Homerhomer (Oct 18, 2010)

Charlie said:


> you should also be able to claim the transit credit for your spouse.....


That's correct, transit can be claimed by the spouse, I should have mentioned it in my post.


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## firsttimer (Feb 9, 2012)

Charlie said:


> I think you need to add the number of weeks to line 12 on part B.


A-ha! All these values were automatically calculated by the s/w to be 0, so I did have to override that particular one. I am surprised the s/w doesn't prompt you for the number of weeks/months as soon as the checkbox (Part C, situations a-f) is clicked.

Thanks for the transit credit tip and to all who replied.


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## Charlie (May 20, 2011)

I'm sure the override is just fine. But here's the TurboTax link on how to do it their way:

http://support.intuit.ca/turbotax/en-ca/iq/Child-Care--Higher-Income-spouse-to-claim/INF15066.html

(which seems like a lot more work than a simple over ride .


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## firsttimer (Feb 9, 2012)

Charlie said:


> I'm sure the override is just fine. But here's the TurboTax link on how to do it their way:
> 
> http://support.intuit.ca/turbotax/en-ca/iq/Child-Care--Higher-Income-spouse-to-claim/INF15066.html
> 
> (which seems like a lot more work than a simple over ride .


That guide is incomplete as it doesn't tell you to where and how to input the number of weeks (or months if the lower income partner was a part-time student). You have to press F2 in TurboTax to override Line 12 under Part C on form T778, otherwise you get 0s everywhere


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