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The Caregiver Tax Credit (CTC)

caregiver tax credit

If you qualify for the Care Giver Credit and have not been using it, we may be able to recapture up to $8.000.00 in credits for you.  Contact Ken Pope for further details.

Line 315, the caregiver amount, comes into effect when there is a person, older that 18 years of age, who resides with you at some point during the year, and is dependant on you, due to mental or physical infirmity. The dependant needs to have income of less than $14,000.00 per year for you to receive the maximum tax credit. As well, the person must be your child or grandchild or you or your spouse or your common-law partner’s brother, sister, niece, nephew, aunt, uncle, parent, or grandparent.

If the person was with you any time during the year, you are eligible for the amount. The eligibility for the caregiver amount is effected by the dependant’s net income and conflicts with the use of line 306. Only one of these lines can be used and in most family situations , line 306 gives no real benefit. If a child over 18 receives Ontario Disability Support Program payments or a senior gets the Guaranteed Income Supplement, the persons modest income will not erode the tax credit used by the caregiver, but the same modest income will completely erode the line 306 tax credit.

You Can Claim for 10 Previous Years

What the booklet does not tell you is that, if you failed to apply for the caregiver amount, you may backfile, going back as far as 10 previous years, presuming the person with disabilities was over 18 for all of those years. With the taxation system as complicated as it is, it is good to know that you have another kick at the can. It doesn’t have to be Tax time. Any time is the time to revise past omissions or errors. Using line 315 should put about $600 a year in your pocket.

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