This document has been updated on October 24th, 2017 and reflects the state of the Law, including draft amendments, at that date.


Caregivers

Canada caregiver credit – Fédéral16

Since 2017, the new Canada caregiver credit replaces the disabled dependant credit, the caregiver credit and the family caregiver credit.17

An individual may claim the Canada caregiver credit in respect of a spouse or common-law partner, minor child or eligible relative18 who is dependent on the individual because of a mental or physical infirmity at any time in the year. Unlike the previous caregiver credit, the dependent does not have to live with the individual. However,the Canada caregiver credit cannot be claimed for a senior who is not disabled.

The credit is calculated using two amounts, a higher amount ($6,883)19 and a lower amount ($2,150). The higher amount may be claimed in respect of each disabled dependant who is an eligible relative. The lower amount (previously, the family caregiver amount) may be claimed in respect of a disabled dependent for which the credit for a spouse or common-law partner, the credit for eligible dependents or the credit for disabled children under age 18 is claimed. In the latter case, if this results in less tax relief than would be available if the higher amount were claimed instead, a top-up will be provided to offset this difference.20

The Canada caregiver amount is reduced on the basis of the dependant’s net income and is nil if the income is $23,046.21


16 Information about the new credit may be found on the CRA’s site: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2017-building-a-strong-middle-class/consolidation-caregiver-credits.html

17 Ontario has replaced the caregiver credit and the credit for dependents by the Ontario caregiver credit.

18 Parent, grandparent, brother, sister, uncle, aunt, nephew, niece, child, grandchild over the age of 18 of the individual or the individual’s spouse or common-law partner.

19 Ontario $4,794. These amounts are indexed annually.

20 Examples of the Canada caregiver credit calculation may be found at: http://www.cra-arc.gc.ca/gncy/bdgt/2017/qa01-eng.html.

21  Ontario $21,195.

Amount for Caregivers – New Brunswick

New Brunswick offers a non-refundable tax credit to individuals residing with and providing in-home care for a parent or grandparent 65 years of age or over, or a disabled dependent relative who is at least 18 years of age. The credit amount is reduced based on the dependent’s net income.

To learn more about the applicable amounts for 2017, see Table I2 of the Schedule – Individuals Taxation for the province at the end of the Tax Planning Guide.

Tax Credit for Caregivers – Quebec

Individuals who house an eligible close relative or who live with an eligible close relative incapable of living alone may claim a refundable tax credit for caregivers if the individual lived with the relative for a period of 12 consecutive months, including a six-month period during the year. In 2017, this tax credit is composed of a basic universal amount of $647, and a $529 supplement, reduced when the relative’s income exceeds $23,505 (supplement nil at $26,811).22

If the relative is 70 years or older, he/she may be the parent, grandparent, uncle, aunt, great-uncle or great-aunt of the taxpayer or of his/her spouse. However, if the relative has a serious or prolonged disability and was an adult person during the housing period for the year, the relative may also be the child, grandchild, nephew, niece, brother or sister of the taxpayer or of his/her spouse.

Caregiver of an Elderly Spouse

The refundable tax credit for caregivers also applies to natural caregivers who take care of their elderly spouse that is at least 70 years old in their home. Under such circumstances, the basic credit amount is $1,007 in 2017.23


22 The reduction rate is 16%.  Amounts and thresholds are indexed annually.
23 Amount indexed annually.

Credit for Volunteer Respite Services – Quebec

Caregivers can allocate from a $1,000 envelope available to them annually an amount of not more than $500 to a person who has volunteered respite services of at least 400 hours during the year. The designated person can claim a refundable tax credit equal to the attributed amount.

Tax Credit for Respite of Caregivers – Quebec

Caregivers may claim a refundable tax credit equal to 30% of the total expenses paid in the year, up to $5,200 (maximum credit of $1,560) for specialized respite services for the care and supervision of a severely disabled person who ordinarily lives with them. The credit is reduced based on the income of the caregiver and his/her spouse in excess of $56,935.24


24 The reduction rate is 3%. Amount is indexed annually.