Canada caregiver amount

The Canada caregiver amount is an important non-refundable tax credit that helps caregivers to ease the financial burden of taking care of loved ones. In this article, we will see the detailed rules on this credit, and how to claim it amongst the various lines on the tax return.

Basics of the Canada caregiver amount

The Canada caregiver amount is a non-refundable tax credit that can be claimed by an individual who is caring for a dependant with a mental or physical infirmity [ITA 118(1)(a),(b),(b.1),(d)].

Mental or physical infirmity is not defined in the Income Tax Act (ITA), therefore it takes its ordinary meaning [S1-F4-C2, par. 2.21]. The infirmity must be a prolonged one, it cannot be temporary [S1-F4-C2, par. 2.21]. The infirmity must also be the sole reason for the dependency of the dependant towards the caregiver [S1-F4-C2, par. 2.21]. A signed statement from a recognized medical practitioner stating the infirmity is required.

In general, a person is generally dependent for support on an individual if the individual has actually supplied necessary maintenance, or the basic necessities of life to the person on a regular and consistent basis [S1-F4-C2, par. 2.19]. The basic necessities of life are generally understood to include food, shelter and clothing [S1-F4-C2, par. 2.19].

For the purposes of the Canada caregiver amount for adult dependants, it is not necessary that the cared-for person live in the same residence as the individual [S1-F4-C2, par. 2.61].

For infirm dependant children less than 18 years of age, to claim the Canada caregiver amount [ITA 118(1)(d.1)]:

a)      The child ordinarily resides with the individual throughout the tax year together with another parent of the child.

b)     The child did not ordinarily reside throughout the year with the individual and another parent of the child, and the individual is entitled to claim the eligible dependant tax credit for that child.

c)      The child did not ordinarily reside throughout the year with the individual and another parent of the child, and the individual would have been entitled to claim the eligible dependant tax credit for that child if any of the following applied:

a.      the individual had not made a claim for the tax year for the spouse or common-law partner tax credit or the eligible dependant tax credit for another dependant;

b.      the individual had not lived in the same domestic establishment with another individual who claimed the eligible dependant tax credit for another dependant for the tax year; or

c.       the child had no income for the tax year (for example, the child did not have income for the year that was equal to or greater than the maximum amount for an eligible dependant).

The credit itself can be claimed amongst several lines on the tax return, and for several types of dependants. The next section will elaborate on this.

Canada caregiver amount claim

As mentioned above, the Canada caregiver credit can be claimed amongst several lines on the tax return.

Line 30300 - Spousal amount

An additional amount of $2,499 (2023) can be added to the base amount of $15,000 [ITA 118(1)(a)(ii)].

Line 30400 - Amount for an eligible dependant

An additional amount of $2,499 (2023) can be added to the base amount of $15,000 [ITA 118(1)(b)(ii)].

Dependants that can be claimed for this line are:

·        a parent or grandparent

·        child, grandchild, brother or sister under 18 years of age

·        child, grandchild, brother or sister 18 years of age or older with an impairment in physical or mental functions

* If the dependant is an infirm child under 18 years of age, they must be claimed for the Canada caregiver amount on line 30500 instead of the additional amount on line 30400 (see below).

Line 30425 - Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older

Claim an additional amount of the caregiver amount for a spouse or an eligible dependant aged 18 or older if their net income is between $8,020 and $26,782 (2023) [ITA 118(1)(d)].

For infirm spouses, you can claim lines 30300 and 30425 simultaneously if their net income is less than $17,999; however, the combined amount of credits between these two lines cannot be above $7,999.

For infirm eligible dependants aged 18 or older, you can claim lines 30400 and 30425 simultaneously if their net income is less than $17,999; however, the combined amount of credits between these two lines cannot be above $7,999.

Line 30450 - Canada caregiver amount for other infirm dependants age 18 or older

Claim up to $7,999 of the caregiver amount for other dependants, who are either the child, grandchild, parent, grandparent, brother, sister, aunt, uncle, niece or nephew [ITA 118(1)(d)].

An infirm dependant aged 18 or older not claimed under the eligible dependant line (30400) or Canada caregiver amount for eligible dependant line (30425) can be claimed on this line.

Line 30500 - Canada caregiver amount for infirm children under 18 years of age

Claim $2,499 for every child less than 18 with a mental or physical infirmity [ITA 118(1)(d.1)]. If the dependant is an infirm child under 18 years of age, they must be claimed for the Canada caregiver amount on line 30500 instead of the additional amount on line 30400.

Useful comparative tables

Below you will find useful comparative tables that briefly explain the type of dependant that can be claimed for the Canada caregiver amount, and what amount can be claimed for each line.

*For the purposes of this table, other dependants are grandparent, brother, sister, aunt, uncle, niece or nephew.

Note 1 - The other dependants that can be claimed are brother and sister.

Note 1 - For infirm spouses, you can claim lines 30300 and 30425 simultaneously if their net income is less than $17,999; however, the combined amount of credits between these two lines cannot be above $7,999.

Note 2 - If the dependant is an infirm child under 18 years of age, they must be claimed for the Canada caregiver amount on line 30500 instead of the additional amount on line 30400.

Note 3 - For infirm eligible dependants aged 18 or older, you can claim lines 30400 and 30425 simultaneously if their net income is less than $17,999; however, the combined amount of credits between these two lines cannot be above $7,999.