Part 1:  Personal Federal Taxes Changes

3.  Consolidation of Caregiver credits

Currently, there are 3 types of caregiver credits – infirm dependant credit, the caregiver credit, and the family caregiver credit.  Starting 2017 and subsequent taxation years, these credits are consolidated into Canada Caregiver Credit (CCC).

The CCC will be based on 2 amounts: 

• CCC higher amount:  A maximum of $6,883 (in 2017) can be claimed by a caregiver in respect of each infirm dependant as long as the dependant's net income is less than $16,163 (2017).  Once the net income reaches that amount, CCC will start to reduce dollar-for-dollar and will entirely be eliminated once the net income reaches $23,046 (2017).
• CCC lower amount plus top-up:  A lower maximum amount of $2,150 (2017) for infirm dependants if the eligible caregiver is claiming one of the following amounts:
  • Spouse or common-law partner amount
  • Amount for eligible dependant, or 
  • Amount for infirm children under age 18.

​Under certain circumstances, the top-up calculation may be used to maximize the tax credits.

In addition, the new CCC can only be claimed for dependants who are infirm, and the dependants do not have to live with the caregiver, as long as the dependants are depending on the caregiver for support by reason of infirmity.

The credits can be shared between eligible caregivers as long as the credit does not exceed the maximum annual amount for that dependant.

For more information, please contact us @ 604-639-3229 or info@theresalocpa.ca

Note:  All information relating to the credits above is available from CRA website.

By Theresa Lo, CPA, CGA

February 13, 2018