Section 4 – Health, Seniors and Caregivers
Canada caregiver credit – Federal
An individual may claim the Canada caregiver credit in respect of a spouse or common-law partner, minor child or eligible relative16 who is dependent on the individual because of a mental or physical infirmity at any time in the year. The dependent does not have to live with the individual.
The credit is calculated using two amounts, indexed annually. The higher amount ($7,276 in 202017) may be claimed in respect of each eligible relative of the individual.
The lower amount ($2,273 in 2020) may be claimed in respect of a child of the individual under the age of 18 or added to the following credits claimed by the individual:
- The credit for a spouse or common-law partner;
- The credit for eligible dependents.
In the latter cases, if the amount obtained by combining the credits for the same dependent is less than the higher amount of the Canada caregiver credit a top-up will be provided to offset this difference.
The Canada caregiver amount is reduced by each dollar of the dependant’s net income and is nil if the income is $24,361.18
16 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. 17 Ontario $5,082. These amounts are indexed annually. 18 Ontario $22,470.
Tax Credit for Caregivers – Quebec
Since 2020, the tax credit for informal caregivers is replaced by the tax credit for caregivers. This new refundable tax credit comprises two components and is provided for an individual who, as the case may be:
- Takes care of an eligible person at least 18 years of age who has a severe and prolonged impairment and needs help to perform a basic activity of daily living (component 1);
- Co-resides with and takes care of an eligible person at least 70 years of age without a severe and prolonged impairment (component 2);
The individual must take care or co-reside with the eligible person for a minimum consecutive period of twelve months, including a six-month period during the year the credit is claimed.
Eligible persons and amounts
For purposes of component 1, the assistance is provided with respect to a person who is the spouse, father, mother, grandfather, grandmother, child, grandchild, nephew, niece, bother, sister, uncle, aunt, great uncle, great aunt or another direct ascendant of the individual or of the individual’s spouse. An individual who has no family relationship with the caregiver is also eligible, provided a professional of the health and social services network certifies that the caregiver is involved with providing ongoing assistance.19
For purposes of component 2, the assistance is provided with respect to a person who is the father, mother, grandfather, grandmother, uncle, aunt, great uncle or great aunt or another direct ascendant of the individual or of the individual’s spouse.
The following table summarizes the applicable amounts in 2020.20
|Tax credit for informal caregivers – 2020|
|Tax credit amount||Component 1
Eligible person at least 18 years of age who has a severe and prolonged impairment
Eligible person at least 70 years of age with no severe and prolonged impairment
19 A certification must be completed for the first application and every three years thereafter. 20 Amounts and thresholds indexed annually. 21 Reduced by 16% for each dollar of income of the eligible relative in excess of $22,180.
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 2020, see Table I2 of the Schedule – Individuals Taxation for the province.
This document is up to date as of September 3, 2020 and reflects the status of legislation, including proposed amendments at this date.