Canada caregiver credit

What it covers

The credit is meant for someone who supports a spouse or common-law partner with an infirmity, or a family member who depends on them because of an infirmity. Covered relatives include your or your spouse’s child or grandchild, and your or your spouse’s parent, grandparent, brother, sister, aunt, uncle, niece or nephew. Relatives other than children and grandchildren must have resided in Canada at some point in the year.

Dependence has a specific meaning: the person regularly and consistently relies on you for basic necessities such as food, shelter and clothing. Visiting often or helping occasionally with errands is valuable, but it is not the same test.

How the amounts work

There is no single figure. Amounts differ for a spouse or partner, for an eligible dependant aged 18 or older, for a child under 18, and for other infirm dependants aged 18 or older. They also depend on the dependant’s net income, and some claims overlap with the spouse or common-law partner amount or the eligible dependant amount. The CRA updates the figures each year, so use the current return instructions rather than an old number.

The calculation is done on Schedule 5, and the result goes to the line that matches the relationship. A claim for an infirm child under 18 is entered on its own line and does not need Schedule 5.

An illustration

Say an adult in Ontario has a parent with dementia who lives in the same home and relies on them for housing and daily needs. The parent’s income is modest, so the caregiver amount may be available, subject to the income thresholds and to whether anyone else claims the parent. If the parent’s income is above the thresholds, the claim may be reduced or unavailable. This example is illustrative only.

If a sibling also helps support the parent, the claims may need to be coordinated, because the amount allowed for one dependant is limited.

Records and common mistakes

Do not send documents with your return. Keep them in case the CRA asks. The CRA may ask for a signed statement from a medical practitioner stating when the infirmity began and how long it is expected to last. For a child under 18, the statement should also say the child needs much more help with personal needs and care than other children of the same age.

You generally do not need that statement if the CRA already has an approved Form T2201 for the period. Separated parents and shared custody can bring special rules, so confirm those before claiming.

What to discuss with your accountant

Ask which line fits your situation, whether the disability amount could be transferred to you instead or as well, and how a medical expense claim for the same person interacts. Bring the dependant’s net income, any approved DTC letter, the medical practitioner’s statement and notes on who pays for housing and daily needs.