The Canada Caregiver Credit

Taxpayers who support an elderly parent or a disabled family member may be able to claim the Canada Caregiver Credit which was introduced in 2017 tax year.  To qualify, the taxpayer must support a dependent with physical or mental impairment. CRA considers supporting a dependent as regularly and consistently providing with some or all of the basic necessities of life, such as food, shelter and clothing. The taxpayer does not have to be living with the dependent in order to qualify (can be in a nursing home). Dependents may be a spouse, child, parent, grandparent, sibling, uncle, aunt, niece, or nephew. The maximum credit amount is correlated with the relationship of the taxpayer to the dependent. For the 2022 tax year, the maximum Canada Caregiver Credit for an infirm dependent child under 18 is $2,350 whereas the maximum credit for an infirm dependent 18 years or older is $7,525. The maximum Canada Caregiver Credit for an infirm spouse is $7,525.  If the qualifying dependent’s net income is over $17,670, the credit is lowered dollar for dollar over this amount and is completely phased out at net income of $25,195.

To support the dependent’s physical or mental impairment, you need a letter from a doctor to certify the impairment or a disability tax credit certificate approved by CRA.

The above information is of a general nature only and should not be relied upon for specific situations.  Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.