Caregiver Tax Credit – Changes in 2017
At some point in your life you may take the responsibility of helping someone in your own family or a friend’s family with the role of caregiver or advice in this capacity. Seniors are the fastest growing group. There is some tax relief for caregiver taxpayers under the Federal Budget for Tax Caregiver Tax Credit in 2017 and going forward.
For those that are in the role of a caregiver to a relative or friend, aging parents or dependent children, it can be a challenge to manage effectively and with enough energy for the ‘to do’ list. Whether it be shopping for, picking up prescriptions, cooking meals, cutting the grass, driving to medical appointments, paying bills and advocating for them, repairing things around the home or finding their keys. The biggest thing change in my life was finding the right resource to help and being sandwiched between my children and managing my elder parental care all at the same time.
As a tail end baby boomer, I have come across this in the capacity of caregiver for my uncle, assisting him with regular daily tasks, getting to his appointments and treatments and helping him manage his cancer condition as well as co-coordinating through the other health care systems, homecare, hospice coverage and out of pocket items. I have also assisted managing with other chronic conditions and treatments, other challenges, getting personal support workers, as well as applying for disability tax credits and other treatments. There are so many things to know who to contact for care or advice in the nature of a permanent scenario.
Individuals providing care and support – Caregiver Credit 2017
The 2017 budget streamlined and simplified the 3 credits (The Infirm Dependent Amount, Family Caregiver Amount and Family Caregiver Amount ) into the Caregiver Credit Amount
- $6,883 For infirm family dependents who are parent/grandparents, brother/sisters, aunts/ uncles, nieces, nephew, adult children of the claimant of or the claimant’s spouse or common law partner.
- $2,150 limit in respect of an infirm dependent spouse/common law partner, infirm child under age 18 at the end of the tax year for whom the individual claims the spouse or common law partner amount, or infirm child under 18 eligible as a dependent credit
- Reduced dollar for dollar by dependants net income over $16,163 in 2017
- Dependents need not live with caregiver, 2017 figures.
- The Ontario proposed budget has the Ontario Caregiver Tax Credit
Sally Lives in North Bay and takes care of her sister, Jane who has been diagnosed with chronic pain and has not been able to work. She takes her to her medical appointments, buys her groceries, and helps with utilities, and cooks for her. Jane receives social assistance of $15,000 so Sally under the new rules in 2017 receives the non refundable tax credit of $6,883.
Claiming an infirm
If you make a claim for infirm you will have to give a description of the nature of the physical or mental infirmity to Canada Revenue Agency. Your information included in your return will help CRA assess if you are eligible to claim a dependent as infirm.
The claimant, the person that is assuming the tax credits now is different than previous, no longer need to live with the inform. The change is that the caregiver tax credit will no longer be available in respect of non infirm seniors who reside with their adult children.
Check to see if the dependent also has the disability tax credit available to them as there may be more planning available for transferring of credits.
Always seek the advice of your qualified tax professional to see what would be optimal and correct for your personal situation.