Under Canada’s Income Tax Act, if you, your spouse or common-law partner have taken on caring for an elderly or disabled dependant, you may be entitled to claim the Caregiver Tax Credit. In order to qualify for the credit, each eligible dependant must meet all the following criteria:
- they must live with you;
- they must be aged 18 or older;
- they must be a resident of Canada;
- they must be related to you (or a spouse or common-law partner);
- they must have a net income of less than $20,607 in 2016 and;
- they must be dependent on you as a result of a physical or metal impairment, or are your or your spouse or common law partner’s parent or grand parent who are 65 years of age or older.
The Caregiver Tax Credit contemplates that some individuals may be supporting more than one elderly or disabled dependant. If this applies in your case, you can claim the Caregiver Amount for each eligible dependant. You can even split the claim with another individual who is also caring for the same dependant. However, the total claim cannot exceed the maximum amount for a given dependant.
A key exception to keep in mind is if the disabled dependant is your spouse or common-law partner, you can not access the Caregiver Tax Credit.
If you would like more information navigating the rules around the Caregiver Tax Credit, or other programs that can help you and your family, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.