Area of Law: Tax Law
Answer # 1703
Canada Caregiver Credit (CCC)Region: Ontario Answer # 1703
What is the Canada Caregiver Credit (CCC)
The CCC is a federal, non-refundable tax credit created to help individuals who are providing support to family members who have a physical or mental impairment. The CCC replaces the Infirm Dependant Credit, the Caregiver Credit, and the Family Caregiver Credit. The amounts that can be claimed are consistent with amounts that would have been claimed under these previous credits.
Providing support means consistently providing a dependent with one or more necessities of life, such as food, shelter, or clothing.
Who is eligible for this credit?
You may be eligible to claim this credit if you are providing support for one or more of the following people, because they have a physical or mental impairment:
- dependant spouse or common-law partner,
- your or your spouse’s or common-law partner’s child or grandchild
- your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if resident in Canada at any time in the year)
Individuals cannot claim a parent or grandparent (65 years or older) living with them as a dependant, unless they are infirm.
Individuals do not have to be living with the dependent in order to claim the credit.
The new CCC applies to the 2017 and subsequent tax years. Beginning 2018 the CCC amount and income thresholds will be indexed for inflation.
Who is eligible and what is the credit amount?
- Spouse or common-law partner: $2,230 – maximum $7,140
- Eligible dependant 18 years of age or older: $2,230 – maximum $7,140
- Your or your spouse’s or common-law partner’s children under 18 years of age at the end of the year: $2,230
- Eligible dependant under 18 years of age at the end of the year: $2,230
- Other infirm dependents: Dependant 18 years of age or older who is not your spouse or common-law partner or an eligible dependant: up-to a maximum of $7,140.
You can claim the CCC for more than one dependent if the eligibility requirements are met.
Can the CCC be shared by more than one caregiver?
Only one CCC amount is available for each eligible dependant. However, the credit can be shared by multiple caregivers who support the same individual, provided that the total claim isn’t higher than the maximum annual amount for that dependant.
How is impairment determined?
In order to qualify for the CCC, CRA may request a signed statement from a medical practitioner that states when the impairment began and how long it is expected to last.
If the dependant is under 18 years of age, the statement should also state whether the person will likely continue to be dependent on others for an indefinite amount of time. Being dependant on others is defined as needing much more assistance for personal needs and care compared to children of the same age.
For more information on the Canada Caregiver Credit, visit canada.ca.
For legal advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact Tax Chambers LLP
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