Infirm Parent living in lodge - DTC not on file - how can I claim Canada Caregiver Credit (CCC)

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******RESOLVED - **

Canada Caregiver Credit (CCC) applies only when the dependent person has a net income is between $7,159 and $23,906 in 2019.

In order to enter this claim I needed to complete the dependent page and tic the checkbox to claim the Canada Caregiver Credit (CCC). My client is ineligible for this credit because the dependent income does not qualify.

It took quite a bit of searching and fussing to figure this out while the lines were all blocked, so I have kept this post in case it might help someone else.****

THIS WAS MY ORIGINAL QUESTION

I am wondering if and how I can claim the Canada Caregiver Credit (CCC) for my client.

My single male client has an infirm parent (88 years) who is living in lodge. My client does everything for this parent - shop, bank, repair stuff, drive to appointments, receives and delivers all mail, runs errands, etc. The mother is financially independent but is no longer physically independent. She can no longer perform all the activities of daily living without support.

Currently there is no DTC on file. There are plans to apply for the DTC after the current Covid-19 restrictions are eased or lifted. In the meantime I would like to claim the CCC.

The parent does not live with her son who is single. Therefore the son in not eligible for eligible dependent amount.

" You were single, divorced, separated or widowed and supporting a dependant who lived with you in a home that you maintained, at any time in the tax year."

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-30400-amount-eligible-dependant/you-claim-amount-eligible-dependant-line-30400-6.html

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Is the Canada caregiver amount restricted to eligible dependent who lives with you? It appears not to be a condition of the CCC per CRA below.

According the CRA the Canada Caregiver Credit eligibility depends upon the following:

  1. Do you support a spouse or common-law partner, or a dependant with a physical or mental impairment ? The Canada caregiver credit (CCC) is a non-refundable tax credit that may be available to you.

  2. An individual is considered to depend on you for support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.

  3. The CRA may ask for a signed statement from a medical practitioner showing when the impairment began and what the duration of the impairment is expected to be.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-30425-caregiver-spouse-dependant.html

**Q2 - How do I make the claim for the Canada Caregiver Credit in TaxCycle and where do I enter the mother’s information? Is there a ceiling income amount to qualify for this credit? **

I tried using the dependent form.

In the section titled Caregiver amount there is a based amount of $23,906. Why does this amount apply? Where does this number come from? Is there a ceiling income amount to qualify for this credit?

In the section for infirm dependent age 18 or older the based threshold amount is $18,619. Why does this amount apply? Where does this number come from? Is there a ceiling income amount to qualify for this credit?

Q3 - Is there a credit which would apply in this circumstance? If so, what is it and where would I enter this?

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Ideally there is or will be a DTC on file for the mother and her income is below the threshold for the CCC. She would only have to live with the son if he were to also claim the eligible dependant amount.

Additionally if the mother doesn’t need the full disability tax credit on her return, she is able to transfer the unused amount to the son.

From your post, I’m not sure how financially independent the mother is. It may be possible that the son ends up not claiming anything for his mother due to her income.

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@tsolowczuk

Well… this is a case of the “relunctant taxpayer” and the “not wanting to push too far and too fast” tax preparer.

My tax and bookkeeping practice is full of document and procedure phobic trades who want their fairy godmother to just take care of everything without too much work or thought on their part.

After much prodding it turns out that his sister had already taken care of the obtaining the DTC three years ago when Mom moved into the lodge. Mom’s income at $36,000 eats up all of the credit. It has taken me two+ years to pull this information out of him. The only reason that he was willing to follow-up is that with Covid-19 he has time on his hands. I’ve been asking all along. At least now I have the answer.

I love my trades but it requires a gentle but persistent hand. Most would rather work with their hands rather than manage documents or dig for information.

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You can get the info regarding the DTC right from “Represent a Client”
I don’t do any clients if they don’t want to give me access.

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Good you now have the correct information. It might be people’s personalities rather than the trades though. Not sure why this is so difficult for them.