Caregiver Tax Credits Guide

Canada Caregiver Amount Overview

2024 Maximum Amounts

How It Works

• Non-refundable tax credit
• Reduces tax owing (15% of amount)
• Must have tax owing to benefit
• Can transfer unused portion to spouse

Eligible Dependants

Who Qualifies

• Spouse or common-law partner
• Child or grandchild (any age if infirm)
• Parent, grandparent
• Sibling, aunt, uncle, niece, nephew
• Must have physical or mental impairment

Relationship Requirements

• By blood, marriage, common-law, or adoption
• Can be your dependant or spouse's dependant
• Must be Canadian resident at some point in year

Types of Caregiver Credits

1. Spouse/Partner Amount Enhancement

• Add-on to spousal amount
• If spouse is infirm
• Up to $2,499 additional
• Reduced by spouse's income over threshold

2. Eligible Dependant Enhancement

• Add-on to eligible dependant amount
• For single parents with infirm dependant
• Up to $2,499 additional
• Reduced by dependant's income

3. Other Infirm Dependants (Age 18+)

• Full $7,999 caregiver amount
• Parent, grandparent, sibling, etc.
• Must be 18 or older
• Reduced when their income exceeds threshold

4. Infirm Children Under 18

• $2,499 add-on to child amount
• Child must have impairment
• Not reduced by child's income

Income Thresholds

Reduction Calculations (2024)

• Credit starts reducing when dependant's income exceeds threshold
• Different thresholds for different credit types
• Reduces dollar for dollar above threshold

Full Credit vs Reduced

For dependent 18+ (not spouse or eligible dependant):

• Full $7,999 if their income under $18,783
• Reduced above that
• Eliminated when income reaches $26,782

Physical or Mental Impairment

What Qualifies

• Prolonged impairment expected to last 12+ months
• Markedly restricts ability to perform activities
• Makes them dependent on you for support
• Doesn't require DTC certification

Documentation

• Doctor's note helpful but not mandatory
• Keep records of care provided
• Document expenses and time spent
• CRA may request verification

DTC vs Caregiver Amount

• DTC has stricter criteria
• Caregiver amount may still apply without DTC
• If eligible for DTC, usually qualifies for caregiver
• Can claim both if eligible

Claiming on Your Tax Return

Where to Claim

• Line 30300: Spouse caregiver enhancement
• Line 30400: Eligible dependant caregiver enhancement
• Line 30425: Canada caregiver for other infirm dependants
• Line 30450: Canada caregiver for infirm children under 18

Information Required

• Dependant's name and SIN
• Relationship to you
• Their net income
• Year of birth

Multiple Caregivers

Sharing the Credit

• Only one person can claim per dependant
• Or can split if agreed
• Must total to maximum allowed
• CRA may split if disagreement

Best Strategy

• Person with highest income usually claims
• Or person with tax to reduce
• Consider combined family tax

Caregiver Amount + Other Credits

Can Combine With

• Disability Tax Credit (if dependant qualifies)
• Medical expense tax credit
• Home accessibility tax credit
• Disability supports deduction

Cannot Double Count

• Same dependant can only support one caregiver claim
• Choose optimal credit if multiple apply

Caring for a Parent

Common Scenario

• Elderly parent with health issues
• Living with you or nearby
• Dependent on your support
• May qualify for full $7,999

Parent in Care Facility

• May still claim if providing support
• Paying for care counts
• Visiting and managing affairs counts
• Document your involvement

Provincial Caregiver Credits

Additional Benefits

• Most provinces have similar credits
• Calculated automatically from federal
• Adds to total tax savings

Example Provinces

• Ontario: Ontario Caregiver Amount
• BC: BC Caregiver Credit
• Alberta: Alberta Caregiver Amount
• Amounts and rules vary

Record Keeping

What to Keep

• Medical documentation of impairment
• Receipts for care expenses
• Record of support provided
• Dependant's income records

How Long to Keep

• 6 years from end of tax year
• Longer if dispute or reassessment
• Digital copies acceptable

Common Mistakes

Avoid These Errors

• Not claiming when eligible
• Wrong line on tax return
• Using wrong income threshold
• Multiple family members claiming same dependant
• Not having documentation ready

If Denied

• Request explanation from CRA
• Gather supporting documentation
• File notice of objection if appropriate
• Can amend previous years if missed