Section 4 – Health, Seniors and Caregivers
An individual may claim the Canada caregiver credit in respect of a spouse or common-law partner, minor child or eligible relative15 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 ($6,986 in 201816 ) may be claimed in respect of each eligible relative of the individual.
The lower amount ($2,182 in 2018) 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.17
The Canada caregiver amount is reduced on the basis of the dependant’s net income and is nil if the income is $23,391.18
14 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.
15 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.
16 Ontario $4,881. These amounts are indexed annually.
17 Examples of the Canada caregiver credit calculation may be found at: http://www.cra-arc.gc.ca/gncy/bdgt/2017/qa01-eng.html.
18 Ontario $21,577.
The refundable tax credit for informal caregivers is provided for an individual who, as the case may be:
- Co-resides with an eligible relative who is unable to live alone because of a severe and prolonged impairment;
- Houses an eligible relative who is either handicapped or at least 70 years of age;
- Takes care of his/her handicapped spouse who is at least 70 years of age;
- Regularly and consistently helps an eligible handicapped relative who does not live in a senior’s residence or a public network facility.19
To be considered an individual’s eligible relative, a person must be 18 years of age or more and also be the child, grandchild, nephew, niece, brother, sister, father, mother, uncle, aunt, grandfather, grandmother, great-uncle or great-aunt of the individual or of the individual’s spouse. However, for the component regarding the house of a person who is at least 70 years of age, the elilgible relative must be the father, mother, grandfather, grandmother, uncle, aunt, great-uncle or great-aunt of the individual or his/her spouse.
To benefit from the credit, the individual must houses or co-reside with the eligible relative or have provided regular and consistent help for a minimum consecutive period of twelve months, including a six-month period during the year the credit is claimed.
The credit amount depends on whether the individual houses or co-resides with the eligible relative, regularly and consistent helps the relative or is his/her spouse. The following table summarizes the applicable amounts in 2018.20
|Tax credit for informal caregivers – 2018|
|Tax credit amount||Housing or co-residing with an eligible relative||Regular help to an eligible relative||Informal caregiver for an elderly spouse|
19 This new component of the tax credit is offered since 2018.
20 Amounts and thresholds indexed annually.
21 Reduced by 16% for each dollar of income of the eligible relative in excess of $23,700.
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 2018, see Table I2 of the Schedule – Individuals Taxation for the province.
Caregivers can allocate from a $1,500 envelope available to them annually an amount of not more than $750 to a person who has volunteered respite services during the year22. The maximum amount to be granted to each volunteer depends on the number of hours provided by that volunteer during the year, that is $250 for at least 200 hours, $500 for at least 300 hours and $750 for at least 400 hours. The designated person can claim a refundable tax credit equal to the attributed amount.
22 Before 2018, the annual envelope for this credit was $1,000 and a maximum amount of $500 could be granted to each individual who provided a minimum of 400 hours of volunteer respite services.
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 $57,400.23
23 The reduction rate is 3%. Amount is indexed annually.
This document has been updated on August 31st, 2018 and reflects the state of the Law, including draft amendments, at that date.