The Caregiver Tax Credit (CTC) is a tax credit available in Canada to individuals who provide in-home support for a relative who is a dependent, is over 18 and resides with the supporting relative in his/her residence at some time in the year. It is found on line 315 of the Canadian federal tax return.
The dependent must be a child, grandchild, brother, sister, niece, nephew, aunt, uncle, parent or grandparent. The caregiver credit is not applicable unless at some time in the year the dependent resides with the person taking the credit. Families using a Henson trust, the Canada Disability Child Benefit other estate planning methods for children with disabilities are not excluded from the DTC .
Video Caregiver tax credit
Benefits
As of 2012, the CTC was worth approximately $600 in annual tax saving. it could be retroactively filed for 10 years which can result in an overall tax savings of approximately $5,000. The CTC erodes dollar-for-dollar if the dependent's income exceeds $13,986 and becomes completely if it tops the $17,745 threshold. The tax payer cannot claim both the caregiver tax credit and the amount for an infirm dependent 18 or over.
Maps Caregiver tax credit
References
Source of the article : Wikipedia
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