Canada Caregiver Credit - Claiming for the First Time (Two Taxpayers)

Tax Topics
1

I have two taxpayers who may be claiming the Canada Caregiver Credit for first time. I want to clarify the process.

Here are the details:

  1. A single mom with a child (she has claimed and will continue to claim the dependent amount for the child).
  2. A married woman with two children, all of whom have been approved for the Disability Tax Credit by CRA (Form T2201 has been approved).

Please note the DTC will also be claimed for these children.

I reviewed following:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/canada-caregiver-amount.html

Specifically:

1
12068Ă—480 67 KB

2
22224Ă—766 98.5 KB

3
32094Ă—728 111 KB

Could others share how they typically approach the CCC? Specifically, what steps do you take on your end to ensure the taxpayer is eligible and to have sufficient notes for the working papers for the claim?

Thank you for your guidance!

2

I ask the client, “Do you have to care for a family member that is…(disabled, etc)…and needs your help to…(walk, eat, etc)?”
If they say yes, I ask, “Do you want to claim the caregiver credit?”
If they say yes, I ask, “Are you prepared to respond (and/or prove it) to CRA if they question it?”
If they say yes, I tick the box on the Info form.

1 Like
3

I have had a fair number of these scrutinized by the CRA asking very very detailed questions of types of care, how many hours per day/week, how assistance is given, who pays for what, transportation details if taking to dr. appointments etc.

1 Like
4

thank you for sharing your steps - greatly appreciated!

Thank you!

Key take aways I read CRA link:

Claim CCC if one or more individuals depend on you for support because of a physical or mental impairment.

Child is, and will likely continue to be, dependent on others for a long and continuous period because of an impairment in physical or mental functions. (“Dependent on others” means that the child needs much more help for their personal needs and care compared to children of the same age.)

Do not need a signed statement from a medical practitioner if the CRA already has an approved Form T2201, Disability Tax Credit Certificate

However, based on your experience its looks like it’s much more in-depth. I wonder why this isn’t made clear with the CRA.

None the less, I will tell taxpayers to track as you say:

  • types of care
  • how many hours per day/week
  • how assistance is given
  • who pays for what
  • transportation details if taking to dr. appointments
  • etc.

This will most certainly strengthen the clients defence should the claim be questioned (assuming they want to claim it).

5

I had one of these questioned with a post assessing review a few years ago; not too long after the Caregiver Credit came out. The request was questioning the credit for a disabled spouse.

We uploaded a picture of the client’s spouse, who was a double amputee. The CRA accepted the claim without further explanation. As they say, a picture is worth a thousand words.

1 Like
6

The facts always matter.

1 Like
7

Had one questioned a few years back. Taxpayer has 40 year old child with mental problems. I had the taxpayer write up a reply. It was very detailed, listing activities done on behalf of the child, including a budget of annual cost including cigarettes, cat litter, vet bills, groceries, clothing, cell phone, sometimes rent, etc. CRA accepted that and have never asked since. Child already had the disability tax credit which was transferred to the parent. Sometimes the system works in your favour.

1 Like