Personal Finance

Nanny Expense for Child Care Expense T778 or T2125

  • Last Updated:
  • Mar 17th, 2022 10:10 am
[OP]
Newbie
Jul 8, 2006
53 posts
1 upvote

Nanny Expense for Child Care Expense T778 or T2125

Good morning,

I have a nanny that I paid near Full-Time for 2021. I have setup a Pay-Roll under my name and I also have some other sites business which needs the Pay-Roll number.

1 - My nanny cost is around 18K this year (yes, very expensive).
2 - My child care expense deduction is limited to 8K.
3 - The care giver does not only care the kid, but they also do some light chores in the house including cooking and cleaning.

My question is
A - can I report my expense of her income into T2125 as a wage/expense? 100% ? or that I have to splitted her hours based on looking under my kid vs the cleaning time ( 66% / 33% )

B - I can only report her amounts 100% on the child care Expense.

C - I am her employer - I paid also her EI/CPP and Employer copy of that. (which is another near $3000)

What's the legal approach for this? Can I split her incoming between T778 and T2125 or that it has to be 100% on the T778 or T2125.

The key part is that I also run some small income with the same PayRoll numbers and other (wage payout). Does Nanny can be count into my wage expense (T2125) like other pay-out.

Thanks,
3 replies
Sr. Member
May 12, 2003
983 posts
375 upvotes
Unless this Nanny is helping you in your business, you cannot claim her expense in your T2125. If she does, then sure, go ahead claim the remainder in your T2125

Only the $8k for childcare expenses.
Deal Addict
Feb 22, 2007
2057 posts
279 upvotes
Mississauga
You can only claim the full 18 + 3k in the childcare section...you will be limited to 8k.

This is not a business expense, therefore no T2125 applies.

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