Filing Your Return -> Family Caregiver Amount Tax Credit
Family Caregiver Amount (FCA) Tax Credit
Income Tax Act s. 118(1)
The 2011 Budget introduced a Family Caregiver Amount Tax Credit (FCA), beginning in 2012. The legislation was included in Bill C-13, which received Royal Assent (became law) on December 15, 2011. Yukon is also providing the Family Caregiver Tax Credit.
This is a non-refundable tax credit based on an amount of $2,000, at the lowest tax rate of 15% federally, 7.04% for Yukon. This tax credit is increased annually for inflation. Only one family caregiver amount will be available in respect of each infirm dependant. A letter from a qualified medical professional is required in order to claim this tax credit.
This tax credit provides an increase of $2,058 for 2014 ($2,093 for 2015) to
The income threshold for these tax credits is also increased by the FCA when the FCA can be claimed, except for the infirm dependant amount, which already includes the FCA.
Schedule 5 of the personal tax return is completed in order to claim the family caregiver amount.
The $2,000 is indexed for inflation, so will be $2,058 in 2014 and $2,093 in 2015. The amount is noted at the bottom of the tables of non-refundable tax credits - base amounts.
Although the Canada Revenue Agency (CRA) documentation on this tax credit uses the word "impairment", the word used in the Income Tax Act is "infirmity", which is not defined in the income tax act. The word "impairment" is used in the Income Tax Act in relation to the disability tax credit, which requires completion of form T2201. For the Family Caregiver Amount, form T2201 is not required, but a letter from a qualified medical professional is required. The letter must indicate that the dependent person, "by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the dependent personís personal needs and care, when compared to persons of the same age, and is so dependent on the individual at any time in the year".
Revised: September 27, 2015
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