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Splitting child care deduction


jshould

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My spouse was a full time student for 6 months.  We have one child under 7 in full time daycare for $12,000/year.  As the higher income earner, my child care expense deduction was correctly calculated at $5200 for the period my spouse was in school.  The remaining $2800 is not being shown on the linked return of my spouse.  My spouse has only $9000 in taxable income, so this would not effect her taxes, but wouldn't this deduction reduce her taxable income and therefor increase the spousal amount I am entitled to, reducing my tax?

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Hello jshould,

Child care - Special cases
There are special situations that allow you to claim child care expenses, even if your income is higher than your spouse's, for example, if you paid for child care expenses to attend school, or were actively seeking employment then you can claim a deduction for child care expenses.

Please follow the steps below:

1- In the "Left side menu on the Interview tab", select "Interview setup".
2- On the page that appears on the right, go to the "Parents and children" group, check the box "Child care (special cases)" and click "Next" at the bottom of the page.
3- Return to the "Left side menu on the Interview tab", select the "Child care (special cases)".
4- On the screen to your right, click on the plus "+" icon to the right of the line.
5- A new page will appear and enter the information concerning your family.
6- You must enter the child care expenses in the child's file under "Child care".
For more information on this topic, please visit the following links.

For the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-214-child-care-expenses.html

Also, we suggest you read the information from the CRA on Form T778 at the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t778.html

For Revenu Québec:
http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/remb-solde/ligne455.aspx

In addition, you may refer to Appendix C at the following link

http://www.revenuquebec.ca/documents/en/formulaires/tp/2012-12/TP-1.D.C-V(2012-12).pdf

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I have the special cases working to transfer the child care deduction to my return for the 6 month period my spouse was in school ($5200).  The issue is that the remaining $2800 of eligible child care expenses is not showing up on my spouses return.  As she currently shows $9000 of net income, the remaining $2800 child care expense deduction should reduce that to $6200 net income, which would increase the spousal amount I am eligible for.

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