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Caregiver Credits

February 22, 2026

What people don't know how to document means they pay too much tax. My spring workshops to date have prompted this rant. My heart goes out to people whose claims are being denied because they don't understand how to document a tax credit claim or how to read the denial letter and respond to the letter with appropriate action.

If you have a relative living with you, who is dependent on you because of a physical or mental infirmity, (not the same as a disability, in fact there is no definition other than it takes it common ordinary meaning from the dictionary) you may qualify for a number of different tax credits, not just the caregiver credit.

There is a top-up provision that provides in some cases that a number of partial credits are tripped. You really need to complete your dependent window in your tax software very carefully to determine the applicable tax credits.

Successfully negotiating a claim is another matter altogether. You have to know how to document your claim for these credits; you can't just claim the credits without documenting support.

The best place to review these credits is on a federal and provincial/territorial TD1. The TD1 is a wonderful tool as it provides a clear list for the credits and it's useful to reduce the tax you pay at source so you don't have to wait until next April for a refund if you qualify for these tax credits.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/hwpyrllwrks/stps/hrng/td1/menu-eng.html

The next best place is to review these line numbers that are all listed on this page:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/menu-eng.html

These line numbers are the ones to read:
Line 305 Amount for eligible dependent
Line 306 Amount for infirm dependent age 18 or older
Line 315 Caregiver amount
Line 316 Disability (self)
Line 318 Disability transferred from dependent
Line 330 Medical for self, spouse & children
Line 331 Medical for other dependants

Note that for children there is an additional disability supplementary amount that is clawed back for attendant or child care. Calculate the supplement by completing the chart for line 316 on the TD1 Federal Worksheet

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/318/dpndnt-eng.html

Note that day care costs increase for children with a disability from $7,000 to $10,000 and that the children's fitness amount doubles from $500 to $1,000.

If your child qualifies for the DTC, you may also qualify for the Child Disability Benefit, a tax-free benefit of up to $2,300 per year.
http://www.cra-arc.gc.ca/bnfts/dsblty-eng.html

Note that some medical expense credits can be claimed as 'disability supports' if you have employment income and the DTC. See T929 for a list and the form. There is no carryforward or transferability to parents for disability supports.
http://www.cra-arc.gc.ca/E/pbg/tf/t929/README.html

You will also find a full written explanation in IT513, Personal Tax Credits.
http://www.cra-arc.gc.ca/E/pub/tp/it513r/README.html

The Appendix to IT513 explains what constitutes support. Basic essentials like food, shelter, clothing and medical costs will qualify and it doesn't have to be 100% of the cost. You can't give your dependent money to spend, you have to pay for these essentials yourself with your credit card or write a cheque direct to the third party.

Parents supporting adult children who live with them, and are receiving provincial disability benefits should be claiming for some or all of these credits. In some cases, parents who support an adult child who does not live with them may also qualify for these credits. Read TD1 carefully, noting which claims require a single parent and which require the person to live with you.

Note that you may be able to claim both the transfer of the disability amount as well as the caregiver credit. The caregiver credit requires documentation of infirmity, which is not the same as disability (otherwise known as impairment in ability).

There is a top-up provision for the tax credits, so if you have family living with you, please prepare all of the tax returns together. Complete the dependent window and add each dependent into your tax return to manipulate the tax credit transfers and claims for relatives who live with you, or if infirm over 18, may not live with you but you support them.

Check out IT 513 for a complete read on how the tax credits work. Our politicians have created such a hodge podge of credits and claims for relatives that almost no one can figure out how these credits actually work.

Document your claims appropriately or they will be denied. What does this mean? Have the doctor write a letter to describe the infirmity, or complete the T2201 to document a disability. You might also be required to document with 'certification in writing' a number of medical expenses.

If your claims are denied, read S. 118.2(2) and Regulation 5700 for a detailed explanation of what would be required to successfully complete a claim. CRA and Finance are not being fair to Canadians by their lack of disclosure of how to document a claim for these tax credits.

RC4064 Medical and Disability-Related Information - 2008 is now available in print and to order online
http://www.cra-arc.gc.ca/formspubs/rqst-eng.html

Please order a supply to distribute them to everyone you know, drop a copy in every doctor's office you visit and hand them out where-ever you see someone who might qualify because they support or are supported by family. Canada Revenue Agency has no budget to disseminate this vital tax information. It's up to Canadians to self-assess and that means to get the information we need, we have to request it. Canada Post delivers it for free if we ask for it. Exercise your right to information and ask for RC4064 today.

My Pay Less Tax workshops are attracting from 30 to 50 people per session, many of whom have never heard of these credits, or tried to claim them and were denied their claims because of a lack of documentation.

I can't begin to help each person, which is why I am presenting to groups to raise awareness that you have to read those denial letters word for word and figure out what they say in order to get a claim successfully processed.

These workshops are not to promote my accounting practice, but I will try to provide some names of other CGA's willing to take on clients and there aren't very many willing to, it's a short list.

Documentation requirements are not adequately addressed by the denial letters, often couched in language the recipient does not understand and this leads to anger, frustration and a sense that we are being lied to.

What can you do to learn more?

Read the RC4064, read the Income Tax Act S. 118.2(2) and Regulation 5700 and document your claims with appropriate correspondence from your qualified medical practitioner.

http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html
http://laws.justice.gc.ca/en/I-3.3/section-118.2.html
http://laws.justice.gc.ca/en/showdoc/cr/C.R.C.-c.945/bo-ga:l_LVII//en#anchorbo-ga:l_LVII

When it comes to asking for the documentation as many QP's are understandably angry at being asked to take valuable time away from treatment of patients to document claims for disability, infirmity, handicap, etc. Expect to be charged and as long as it's a reasonable charge, claim that charge as a medical expense too under S. 118.2(2)(a).

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