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Family Caregivers Can Qualify for Canadian Tax Credits and Deductions

December 19, 2018

In Ontario alone, just 3% of caregivers receive some form of supplementary income, such as social assistance or welfare, workers’ compensation, child tax benefits, or tax credits and deductions.

Family caregivers can often miss out on much-needed Canadian tax credits and assistance, which can help fund anything from new drug expenses to the costs of driving to pick them up. These tax credits and deductions soften the financial burden of missing work, too.

There are numerous tax credits caregivers overlook, but here are the big three family caregivers should be aware of:

The Disability Tax Credit

The Canadian Disability Tax Credit is a non-refundable tax credit that aids differently-abled people or their eligible family members in reducing the amount of income tax they may have to pay.

When a dependent qualifies for the Disability Tax Credit, but doesn’t claim the full amount on their income tax return, the excess credit may be transferred to an eligible family member.

The CRA outlines the conditions in which a dependent may be able to make this disability tax credit transfer here.

Canada Caregiver Credit (CCC)

Replacing the Family Caregiver Tax Credit in 2017, the Canada Caregiver Credit can be claimed for those supporting a spouse, common-law partner, or extended family member with a physical or mental impairment.

If a dependent relies on his or her caregiver for regular and consistent necessities such as food, shelter, and clothing, the caregiver can qualify for the CCC. The claim amount depends on the relationship for whom the caregiver is claiming the CCC, the person’s net income, and other credits being claimed for that person.

Learn more about the CCC here.

Medical Expense Tax Credit

If qualifying medical expenses surpass either 3% of net income or $2,302 in 2018, a caregiver qualifies for this non-refundable tax credit. Examples of qualifying health expenses can include the following listed below:

  1.         Medical practitioner payments – i.e. dentists, medical doctors, optometrists, psychologists, qualified speech-language pathologists or audiologists, acupuncturists, dieticians, and many, many more
  2.         Payments for added expenses – i.e. ambulance fees, eyeglasses, hearing aids and batteries, guide and service animals, home renovations to accommodate disabilities, assistive equipment, and more

We specialize in the Disability Tax Credit, helping Canadians qualify for the disability benefits they deserve. Whether you’re living with a disability or a caregiver of a dependent, be sure you’re not leaving unclaimed benefits on the table – learn more about the Disability Tax Credit program on our site.