Canadians are living longer than ever before.
And as our population ages, some of our senior members need extra care. They may need to live with their children for support in their day-to-day living.
Starting with the 2012 tax year, the Canada Revenue Agency introduced the Family Caregiver Amount, a non-refundable credit on an amount of $2,000.
The tax credit applies to anyone responsible for the care of an “infirm dependant,” including children, spouses and common-law partners, according to the CRA.
The dependant must be:
- An individual 18 years of age or older and dependent on you because of an impairment in physical or mental functions
- A child younger than 18 years of age with an impairment in physical or mental functions; the impairment must be prolonged and indefinite, and the child must be dependent on you for assistance in attending to personal needs and care when compared to children of the same age
The government estimates the Family Caregiver Amount will provide tax relief to more than 500,000 caregivers in Canada.
How do I claim it?
The Family Caregiver Amount is a new section on your T-1 income tax return. There are different lines, depending on your classification:
- Line 303 for the spouse or common-law partner amount
- Line 305 for an eligible dependant
- Line 367 for children under age 18 at the end of the tax year
- Line 306 for infirm dependants age 18 or older
- Line 315 for the caregiver amount
You should also note that the FCA applies to each infirm dependant in your household. For example, if you are caring for a child with a disability and your senior parent, you can claim two separate credits. This rule also applies if you have more than one child with a disability or if you are caring for more than one adult.
Can you help?
We sure can. Contact one of our tax specialists and we can help you wade through the tax benefits and credits available to Canadians.
Fill out our contact form or give A1 Accounting a call at 403-226-8297.