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Are You a Caregiver that is Missing out on Your Tax Breaks?

Caregiver claim the FCA on your tax return
As a member of a family quite often you can end up becoming the caregiver of another family member in need, and this can leave you with an additional financial burden. There are some tax breaks that evolve around this type of situation.

 

If the individual you are looking after is a dependant and you have ended up being the caregiver to this individual because of a mental or physical impairment, then the CRA may allow you a claim of up to $2,040.   Although this is a non-refundable tax credit it could go a long way in helping to reduce your tax obligation by perhaps putting you into a lower tax bracket.   This credit is known as the Family Caregiver Amount (FCA).

 

Some of the rules that are applicable to this credit are that the individual being cared for meets the criteria of being physically or mentally impaired and is over the age of eighteen, or, is under the age of eighteen and the condition they suffer from is going to be for a prolonged and indefinite period of time.   This individual must be dependent on you for their personal needs that children in the same age group would normally be able to do for themselves.

 

The CRA has the right to ask you to provide a statement from a physician who can provide accurate information regarding the status of the impairment.

 

You are not limited to just one dependent to make a claim for the FCA.   If you happen to have more than one individual who fits into this category and you are the care giver to both of them then you can claim for each of them.

 

How you make this claim for your tax credit might get a little confusing for you.   For example, if you also claimed this child as an eligible dependent, which you would have done on line 305 of the return, plus the amount for a child born in 1996 or later on line 367, then you have to make your FCA claim on line 367 for this child.    Rather than second guess how to file for this particular tax credit why not let an experienced tax accountant like Sam Seidman do your taxes for you.   This way you won’t have to try and determine if you can make this claim, or worry about whether you have done it right.

 

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Sam Seidman, CPA, CA, LPA
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Email: sam@torontoaccountant.ca

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