Fiscal and Financial Planning Guide 2024-2025
Elders > Caregivers
The aging population and the pandemic have led many families to take care of a loved one with physical or mental limitations.
This dedication usually comes with its share of responsibilities and can take a lot of time and money. Let’s take for example, a person who is caring for a parent with Alzheimer’s disease or caring for a severely disabled child.
Fortunately, governments recognize this contribution by providing some tax relief to support caregivers.
In the last few years, the federal and Québec governments have introduced various tax credits for caregivers.
Federal
At the federal level, caregiver credit can be claimed for an eligible spouse, child or relative who is dependent on an individual because of mental or physical impairment only. The individual does not have to live with the dependant.
The maximum federal tax savings is $1,047 ($8,375 X 12.5%) and is reduced when the dependants income exceeds $18,397 and is reduced to $0 on income of $28,041 or more.
Québec
In Québec, the scope of the caregiver tax credit is not limited to people with severe and prolonged disabilities. Indeed, it also allows to include an elderly relative, other than a spouse, aged 70 and over who needs support.
The tax credit is divided into two parts:
- A fixed basic amount of $1,453 for cohabitation
- An additional amount of $1,453 (with or without cohabitation) if the person has a mental or physical disability. However, this amount is reduced by 16% of the net income of the person cared for exceeding $25,785.
Eligible Relative
An eligible relative usually includes a direct ascendant or descendant, a brother, sister, uncle, aunt, nephew or niece. It could also be the same relatives of the spouse.
Non-Related Person
A non related person may be eligible as long as a health professional certifies that the individual is providing ongoing assistance.
Severe and prolonged mental or physical impairment
This criterion is generally met when the person needs assistance to perform a basic activity of daily living such as walking, eating or dressing.
The following forms must be obtained:
- Québec: Certificate of Impairment (TP-752.O.14)
- Federal: Disability Certificate (T2201)
