Caregiver tax credit at a glance

Specifics

This tax credit concerns:

1. Caregivers supporting an adult with a severe and prolonged disability;
2. Caregivers supporting a parent who is 70 years of age or older.

It is in effect as of the 2020–2021 tax year and is divided into two components.

Component 1: a caregiver who may or may not be living with an adult with a disability

This component offers a universal credit of $1383 for caregivers who live with the person being cared for.

To this amount can be added an amount of $1383 that can be reduced according to the net income of the person being helped, with or without cohabitation. Starting at a net income of $22,180, the reducible amount will be reduced by 16% of the income that exceeds this threshold. The exit threshold is $29,993 where the deductible amount no longer applies. The deductible amount is reduced based on the income of the eligible individual. It is a good idea to discuss this with your accountant before taking any steps.

Eligibility criteria for the caregiver: must be a resident of Québec on December 31 of the year covered by the application.

Eligibility criteria for the person being assisted:

• A person who is 18 years of age or older and has a severe and prolonged impairment that is certified by a physician to require assistance with performing a basic activity of daily living;
• Be the spouse, child, grandchild, nephew, niece, brother, sister, parent, uncle, aunt, grandparent, great-uncle or great-aunt of the caregiver or spouse, or other direct ascendant of the caregiver or spouse;
• For caregivers who are not related to the person being cared for, a certificate certifying the actual involvement of the caregiver must be completed by a health professional. This certificate must be submitted with the application for the tax credit;
• Not be living in a seniors’ residence or a public facility.

Component 2: Caregiver cohabiting with a person (other than their spouse) who is 70 years of age or older and who does not have a disability

This component provides a general credit of $1383 for caregivers who live with the person being cared for.

Eligibility criteria for the caregiver: be a resident of Québec on December 31 of the year covered by the application, and be living with the person being cared for (owners, co-owners, tenants, co-tenants or sub-tenants). The period of cohabitation must last 365 consecutive days, including at least 183 days during the taxation year.

Eligibility criteria for the person being assisted:

• A person 70 years of age or older without a severe and prolonged impairment;
• Be the parent, grandparent, uncle, aunt, great-uncle, great-aunt of the caregiver or their spouse, or another direct ascendant of the caregiver or their spouse;
• Not be living in a seniors’ residence or a public facility;
• Not be the spouse of the person being cared for.

Mini glossary

• Refundable tax credit: amount paid to you if you are entitled to it. If you do not pay taxes during the tax year, this amount will still be issued to you;
• Non-refundable tax credit: reduces the amount of tax you pay on your taxable income, but does not entitle you to a refund.

Other tax advantages for caregivers

Caregivers of seniors and their families can benefit from other tax credits, including:

• Caregiver respite tax credit;
• Tax credit for in-home support for seniors.