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Meet Sandy. A single, businesswoman who not
too long ago decided that the best way to care
for her mom was that she should come live with her.
And Sandy is relieved to hear that the...
Government of Canada wants to help caregivers, like her...
...save on their taxes with the Family Caregiver Tax Credit.
And that will help with the expenses involved with taking
care of a loved one.
So how does it work?
Sandy can benefit from the Family Caregiver Tax Credit,
of up to $306 dollars, in addition to the amount
she can already claim for an eligible dependent.
In order for Sandy to receive the full credit of up to $306
dollars, her mom must rely on her support due to a mental
or physical impairment...
and, her mother must have little or no income.
A non-refundable tax credit reduces the federal income tax
that Sandy has to pay.
However, if the total of Sandy's non-refundable tax credits
is more than her federal income tax payable,
Sandy will not receive a refund for the difference.
Meet Rob.
...who cares for his son Tyler.
Thanks to the Government of Canada,
Rob is also eligible for the Family Caregiver Tax Credit
just like Sandy.
Rob already receives a tax credit for dependent children,
as Tyler is under the age of 18.
And since Tyler requires more care and support than other
children his age, Rob can receive up to an additional
$306 dollar tax credit.
So how do Sandy and Rob save on their taxes?
They claim the Family Caregiver amount of $2,040 dollars...
...multiply it by 15 percent, the lowest income tax rate...
...and just like that, they'll save up to $306 dollars,
each, on this year's filing.
Not only are Sandy and Rob eligible for a Family Caregiver
Tax Credit, but so are many other caregivers of all types of
dependents with a physical or mental impairment - including
children under the age of 18, parents, spouses,
common-law partners and grandparents.
And the Family Caregiver Tax Credit is indexed to account
for inflation in future years.
When Sandy files her tax return she completes Schedule 5
to calculate the amount that she fills in on line 305.
Sandy, and any caregiver who is claiming the Family Caregiver
Tax Credit, must keep the doctor's note describing their
dependent's impairment in case the Canada Revenue Agency
asks to see it.
And when Sandy files her taxes this year she may save up
to $306, on top of what she already claimed
for her dependent mother.
With all the money Sandy saved,
she's bought her mother a new walker.
Do you want to save like Sandy did?
Here is a link to find out more about
the Family Caregiver Tax Credit and how to claim it.