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Caregiver Credits and Consolidations

Tax Credits That Can Be Claimed by Caregivers

Date: April 2017

The already existing tax system on the ground provides nonrefundable tax credits that can be claimed by caregivers. The nonrefundable tax credits include:

  • The family caregiver credit;
  • The infirm dependant credit;
  • The caregiver credit.

The tax mentioned in credits emerged from the resolution at the proposed 2017 budget. They are meant to complement the Canadian caregiver credit (CCC) in the tax credit system.

Frequently Asked Questions on Canada Caregiver Credit

  1. What is the Canada Caregiver Credit?
  2. The Canada caregiver credit which includes the family caregiver, the infirm dependant, and the caregiver credits are introduced in the credit system in the 2017 taxation year. The Canada caregiver credit was meant for individuals (spouse, minors, common inlaw partner) who depend solely on their relatives or caregiver as the source of livelihood due to some mental or physical challenges. The newly introduced tax credits in the 2017 taxation year will help alleviate the suffering of the less privileged that depend on others for food, clothing, and shelter.

    The Canadian Caregiver credits are based on two accounts, namely: the higher amount and the lower amount.

    CCC Higher Amount

    Under the higher amount, a caregiver can claim up to $6,883 for any relation or family that is mentally or physically challenged. The amount to be claimed by the caregiver of the infirmed will be by the informed net income above $16,163. Terms and condition apply too in the sense that the infirmed must live with the caregiver and must not be above 65 years of age.

    CCC Lower Amount with Top-Up

    This is the lower amount that a caregiver can claim on behalf of an infirmed. The caregiver under the second account can apply for the total amount of $2,150. Each of the participants such as the spouse or common-law partner, the eligible dependant and a minor all have a maximum amount that can be claimed. The caregivers of infirmed spouse or common in law and the eligible dependant should claim the lower amount which is $2,150, but when the caregiver claims the other maximum, the higher amount will be provided on top to balance the equation.

  3. How do I calculate the CCC?
  4. Bear these numbers in mind as they will help you in calculating your CCC. The newly introduced CCC allows caregivers to claim any amount below $6,883 from the total amount t of $23,046. The total income threshold should be of $16,163 and the maximum amount of $6,883 which exceeds the dependant’s net income.

  5. Previously, I was able to claim the family caregiver credit. Will I still be able to claim this credit for an ill spouse or common-law partner or eligible dependent?
  6. Yes!!!

    It is possible if you are eligible for the infirm spouse or common-law partner or a feeble eligible dependent for the lower amount of the CCC, with a maximum amount of $2,150 as from 2017.

  7. Will the dependent have to live with me under the new CCC?
  8. No, unlike before the dependant does not have to live with you before you can claim the CCC. But sure, the dependant will have to depend on the caregiver for support due to some reasons, basically an infirmity or illness.

  9. Are there other rules that may affect my claim?
  10. There are handfuls of rules introduced with a little different from the current ones. These rules are as follows:

    • The caregivers not eligible to apply for the CCC on behalf of the infirmed if the infirmed (common-law partner, infirm dependant, or a minor) pays some money to the caregiver for the support;
    • The claim for the higher amount which is $6,883 from 2017 is a onetime claim per infirmed;
    • Only one person who is eligible as a caregiver for the infirmed is allowed to make claims for the caregiver credit for each dependant.
  11. Who are the likely relatives that can apply for this credit if they otherwise qualify?
  12. Any of your relatives was 18 years of age and depend solely on you for support because of some mental, or physical infirmity is eligible to claim the caregiver credit.

    The relatives might be a spouse or common in-law partner’s child or grand children, uncle aunt, niece and nephew that live in Canada.

  13. What do all these changes mean?
  14. Many changes took place with the newly introduced CCC. Now if an infirmed is in the care of your parents of the grand parent, then you wouldn’t be able to make claims again. In addition the new change is that you no longer need to live with the infirmed to be able to claim the CCC, once you are the one supporting the infirmed you are good to go.

    Certain claims will increase:

    • As the top-up is being extended to claims for your infirm spouse or common-law partner;
    • the income threshold above which the higher amount is reduced is more generous than the threshold currently used for the calculation of the infirm dependant credit; and
    • You are no longer required to live with the dependant to claim the Canada caregiver credit.