Turbotax: Family Cargiver and dependent profile

 

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The Canada Revenue Agency (CRA) recognizes the significant role of family caregivers and provides various tax credits and benefits to help offset associated financial burdens. These measures provide financial relief for individuals supporting a dependant with a mental or physical impairment. 
Family Caregiver and Dependent Profile
The profiles for caregivers and dependants vary by the specific credit or benefit being claimed: 
  • Caregiver Profile: The caregiver is typically a family member (e.g., spouse, parent, child, grandparent, aunt/uncle, niece/nephew) who provides essential care or support due to an impairment. This support often involves assistance with daily living activities (e.g., meal prep, bathing, appointments) or providing psychological/emotional support for critical illness/end-of-life care.
  • Dependant Profile: The dependant is the person receiving care who has a severe and prolonged mental or physical impairment.
    • Age and Income: Eligibility and the amount of the credit often depend on the dependant's age (under 18 vs. 18 or older) and their net income, which can reduce or eliminate the non-refundable tax credit amount.
    • Impairment: The impairment must be prolonged and require significantly more assistance in attending to personal needs compared to a person of the same age.
    • Documentation: The CRA may request a signed statement from a medical practitioner to certify the impairment, though a Form T2201 (Disability Tax Credit Certificate) already on file may suffice. 
Significance
The significance of these provisions is primarily financial relief and recognition of the essential, often unpaid, work done by family caregivers. These benefits: 
  • Help offset additional costs incurred when caring for a loved one with an impairment.
  • Reduce the caregiver's overall tax payable.
  • Provide income support during periods when the caregiver must be away from work through Employment Insurance (EI) benefits. 
CRA Tax Credits and Benefits
The CRA offers several specific tax credits and benefits for caregivers and dependants: 
  • Canada Caregiver Credit (CCC): A non-refundable tax credit for individuals supporting a spouse, common-law partner, or other eligible dependant with a physical or mental impairment. The claimable amount depends on the relationship and the dependant's net income.
  • Disability Tax Credit (DTC): This credit is for individuals with severe and prolonged impairments or their supporting family members. The person with the disability can claim a fixed amount, and if they don't use the full amount, the unused portion may be transferred to a supporting family member who provides basic necessities.
  • Amount for an Eligible Dependant: If you are a single parent supporting a dependant who lives with you (e.g., child, parent, sibling), you may be able to claim this amount. An additional amount might be available if the dependant has an impairment.
  • EI Caregiving Benefits: For those who need to be away from work to provide care, EI provides temporary income support for adults or children who are critically ill or injured, or for end-of-life care (compassionate care benefits). 
For detailed information on eligibility and claiming these amounts, caregivers should consult the CRA's Family, child care, and caregivers page or speak with a tax professional. 
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