While we are almost down to the wire and for those who have yet to file their taxes, this blog will highlight the new Canada Caregiver tax credit. This credit replaces the Infirm Dependent, Caregiver and Family Tax credits. It was designed to assist families with caregiving responsibilities to provide better support to those who need it the most, and applies to caregivers whether or not they live with their family member.
The Budget Website provides the following:
“The new Canada Caregiver Credit will provide tax relief on an amount of:
- $6,883 (in 2017) in respect of expenses for care of dependent relatives with infirmities (including persons with disabilities)—parents, brothers and sisters, adult children, and other specific relatives.
- $2,150 (in 2017) in respect of expenses for care of a dependent spouse/common-law partner or minor child with an infirmity (including those with a disability).
The Canada Caregiver Credit will extend tax relief to more caregivers, particularly those providing care to dependent relatives with infirmities or disabilities who do not live with their caregivers, by increasing the income threshold for the dependant at which the credit begins to phase out. The Canada Caregiver Credit will start to be reduced when the dependant’s net income is above $16,163 (in 2017). This income threshold, along with the amounts for the credit, will be indexed to inflation for taxation years after 2017.”
The Alzheimer’s Society provided a tax guide which is also helpful.
Other credits include the Disability Tax Credit which now provides that Nurse Practitioners can now certify application forms for people applying for the Disability tax credit.
As well, there is a new Employment Insurance caregiving benefit which is for those who are caring for a family member with any serious illness or injury. It offers 15 weeks of leave from work at 55 per cent salary. Previously the benefit was intended for those with a family member near the end of life.
I fortunately have an accountant who does my taxes…… Otherwise, good luck!