Canada caregiver amount- Federal

In January 2018, the federal government changed the scope of the definition of caregiver by adding that the person being provided care must have an impairment.

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Therefore, you cannot claim an amount for dependants, who do not have impairment, in physical or mental functions, including a parent or grandparent who was 65 years of age or older.

 

See the following link for the Canada Caregiver amount:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/canada-caregiver-amount.html

To claim the caregiver amount, you must first add the person as a dependant, even if he or she is not a ?true? dependant ? except to calculate the credit. You can add more than one person if you were the caregiver for these individuals.

To add a dependant to your file, please follow the steps below:

1. Under the "Interview" tab, on line "Family head" or the first person, click "Add a dependant" which is located to the right on this line,

2. Complete the "Dependant Identification" page. Please note that it is not possible to indicate in the field "Marital status" that the dependant is married or has a common-law spouse, because you cannot file the tax returns of the couple within your file. Therefore, in your file, you must choose "single" as the marital status of the dependant. To file the tax return of a dependant who has a spouse, you must do it in a separate family.

3. Even if you must add the dependant to your file in order to claim an amount for this person, please know that you are not required to file his or her tax return along with yours. In the "Dependant identification" page on the line "Does this taxpayer require a tax return?", answer "No" in the field located on your right.

Once you have entered the dependant's information, please follow these steps:

1.On the "Left-side menu on the Interview tab" of the dependant's file, select "Medical and disability".

2.On the page generated on the right, click on the plus "+" icon to the right of the line "Infirmity and disability amounts for the dependant".

3.On the page entitled "Dependant's infirmity and disability", enter the required information. NOTE, you must answer the third line which reads as follows. "Does the dependant's infirmity provide entitlement to the Canada caregiver amount?The answer is mandatory.

4. It should be noted that the CRA may ask for a signed statement from a medical practitioner indicating the nature of the impairment. The note should also indicate that this person depends on others because of this deficiency of physical or mental functions.

5. At the bottom of the "Dependant's infirmity and disability" page, you can share this amount with your spouse by answering the last four (4) questions.

The program will generate Schedule 5 and fill complete the sections that best apply to the dependant's income and defer the schedule 5 non-refundable credit to line 30400. In addition, if the person has a disability, if applicable, the "Disability Amount" will be transferred to line 31800 of your federal return if the dependent's income is not too high.

ID: 20201123111458NA.xml

Webpage: KPA370-20201123111458NA.htm

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