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Caregiver Amount Tax Credit

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Filing Your Return

Line 315 Caregiver Amount Tax Credit

Tax credit may be available if parent or grandparent (over 65) lives with you, even if they are not your dependent.

Income Tax Act s. 118(1)(B)(c.1)

If, at any time in the tax year, you (either alone or with another person) maintained a dwelling and your or your spouse or common-law partner's parent or grandparent aged 65 or older lived with you, you may be able to claim the federal Caregiver Amount tax credit in the amount of $4,490 for 2013 ($4,530 for 2014).  This non-refundable tax credit is reduced when the net income of the parent or grandparent exceeds $15,334 for 2013 ($15,472 for 2014), and is eliminated at net income of $19,824 for 2013 ($20,002 for 2014).  Check the tables of non-refundable personal tax credits for the provincial tax credit amounts and income threshold levels.

The parent or grandparent must at the time have been a resident of Canada, and the tax credit is not available if they were just visiting you.

This tax credit is also available when certain other dependent relatives are living with you (see below), but for other relatives the tax credit is not available unless the relative is dependent on you due to mental or physical infirmity.

If you are able to claim the caregiver amount for a dependent relative, and the dependent is eligible for the disability tax credit, any unused portion of this credit may be transferable to you.  If you cannot claim the caregiver amount because the dependent's income is too high, you may still be able to transfer any unused portion of the disability tax credit.

Tax credit may be available if dependent relative lives with you.

If, at any time in the tax year, you (either alone or with another person) maintained a dwelling where you and a dependent relative lived, you may be able to claim the Caregiver Amount tax credit.  The dependent must have been 18 years of age or over, and dependent on you due to a mental or physical infirmity.  This tax credit is reduced if the dependent's income exceeds a certain level.  The dependent must be your child or grandchild, or your or your spouse or common-law partner's sibling, niece, nephew, aunt, or uncle (for parent or grandparent see above).  They must have been a resident of Canada, and the tax credit is not available if they were just visiting you.  Starting in 2012, the Family Caregiver Amount Tax Credit is added to the caregiver amount tax credit, for physically or mentally infirm dependents.

What if the relative doesn't live with the supporting person?

The caregiver amount has been denied when the supporting person and the dependent relative do not ordinarily reside in the same home.  See the 2010 Tax Court case Solanki v. The Queen.  A 2004 Tax Court case, Vaynshteyn v. The Queen, allowed the claim by the daughter, when the daughter resided with the parent during 3 separate periods of at least one month each during the year.

If a supporting person is assisting with attendant care expenses or with the costs of assisted living, see our article on attendant care expenses.

See our tables of non-refundable tax credits for the caregiver tax credit amounts federally and by province/territory.

For more information on the caregiver tax credit, see the Canada Revenue Agency (CRA) web page Line 315 - Caregiver amount.

See also - links to all information on Taxtips.ca related to persons with disabilities.

 

Revised: February 23, 2014

 

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