Canada Caregiver credit

Tax Topics
1

I am a little foggy on the qualification criteria for this credit. Does the dependant need to have an approved Disability tax credit on file in order for this credit to be claimed on their behalf?

I am wondering if a parent can claim this on behalf of a child with ADHD? Or even an adult child living with an elderly parent who requires support but doesn’t have the DTC? I have not been proactively claiming this on behalf of clients who do not have the DTC for their dependants but now I’m wondering if I’ve missed out on some credits.

2

“You may be able to claim the CCC if you support your spouse or common-law partner with a physical or mental impairment.”

From:

There are more stringent rules if the dependant is not your spouse, but it doesn’t say anything about needing a DTC in either case.

3

Thanks @Nezzer . Without a DTC, I don’t see any criteria on what constitutes a physical or mental impairment. A child with ADHD would most certainly rely on their parents for the necessities of life (as do all children). But would that be enough for the CCC? Given the number of kids nowadays that seem to have that diagnosis, and the infrequency that I see this credit applied, my thought is that CRA would disallow it unless a doctor attests to a more serious and severe impairment.

Wondering if anyone else has had success with this credit in absence of a DTC?

4

I have several clients claiming it for years without a DTC. CRA has not questioned any of them.

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5

I wasn’t even aware of the CCC until recently. My son was diagnosed with Crohns back in 2018. What is the easiest method to refile taxes for the past 6 years to take into account the CCC? I have heard that it might be a matter of sending CRA a letter?

6

Alternatively, I would advise you apply for the DTC and have your doctor state a retroactive claim rather than go back and amend for the CCC. You will be less susceptible to review.

7

Ditto @Deepinthemoneycall
Also, assuming you tick the box to “reassess prior years”, CRA will initiate the adjustments rather than you having to pay an accountant to file them.

8

Thanks. Not certain he would be applicable for the DTC based on the requirements. We will be discussing this with our doctor next week. If DTC is not applicable, what would be the best approach for refiling for 2023 (and then possibly prior years)? Via the CRA site, when attempting to ‘Change my return’ there are no options for to apply for the CCC.

9

If the DTC is approved, you won’t have to. CRA will retroactively apply it assuming the appropriate box is checked off. But to adjust for just the CCC, I would send in a T1ADJ along with certification from a doctor describing the condition.

This goes back to my original question. If the condition is not debilitating enough to warrant the DTC, could the CCC still be applicable in certain cases? Is there an inbetween? The link above that @Nezzer attached indicates for children:

" (Dependent on others means that the child needs much more help for their personal needs and care compared to children of the same age.)"

But there is no definition of “much more”. I am considering applying it for a child with moderate ADHD. The parents have no interest in applying for the DTC.

10

Correct. This is my situation. My son has Crohns which has affected his daily life and ours but not to the degree whereby I believe we would be eligible for the DTC. However, the CCC would appear to be applicable. I am just not certain how to apply for this for previous years tax returns (with out filling out the DTC forms)

11

If you try to apply this retroactively the CRA will VERY likely have questions. Ensure you have the doctor’s certification that describes the additional care he needs, when the impairment started and how long it is expected to last. That’s why I suggested sending the T1ADJ along with the doctor’s note.