Overview of the Canadian Caregiver Credit

Specifics

This tax credit is non-refundable. It can be claimed for one or more of the following persons, if they are dependent on you because of a physical or mental disability:

• your spouse, common-law partner, child or grandchild (including those of your spouse or common-law partner);
• a parent, grandparent, brother, sister, aunt, uncle, niece or nephew of yours (including your spouse’s or common-law partner’s), who was a resident of Canada at any time in the year.

Eligibility criteria

To be eligible, the taxpayer must have dependents. The dependent is not required to live with the taxpayer, but it must be demonstrated that at least one of the person’s basic needs (shelter, clothing, food) is being provided for. There is no fixed criterion for establishing this link, it must simply be demonstrated within reason.

Only one application for the caregiver tax credit can be made per person being cared for. If there is more than one caregiver, the amount of the tax credit may be divided or transferred. Please consult with your accountant.

The amount of the tax credit is deductible based on your income and that of the eligible family member. It is a good idea to discuss this with your accountant before making any decisions.

Once the Disability Tax Credit Certificate is accepted, if the impairment is permanent, it will be valid for subsequent years.

Process

Depending on your situation, to obtain the Canada caregiver credit, you must complete

• one or more lines on your return: 30300, 30425, 30400, 30450 and/or 30500;
• the appropriate part(s) of schedule 5, Amounts for Spouse or Common-Law Partner and Dependants (for all).

Be sure to keep any supporting documents in case the CRA asks to see them later.

If necessary, the Canada Revenue Agency may ask you for a note signed by a health care professional attesting the start date and expected duration of the impairment.

• If your request is for a dependent under the age of 18, the note must also indicate that the child requires significantly more assistance with their personal needs than other children of the same age due to an impairment in physical and mental functions and is likely to do so for an extended period.
• In a case where the CRA has already approved the Disability Tax Credit Certificate (Form T2201) for the period in question, you do not need a note signed by a health professional. Note that the Disability Tax Credit Certificate may allow for other tax credits.