- Do you financially support an elderly parent, grandparent or close relative?
- Does your elderly parent, grandparent or close relative qualify for the disability tax credit?
- Does your elderly parent or grandparent live with you?
If you answered yes to one or more of these questions, you may be eligible for additional income tax credits on your tax return.
Allowable Medical Expenses for Other Dependents
If you paid for medical expenses for a parent or grandparent, you could be eligible to claim those expenses on your own personal tax return. If you financially support any close family member, you may be eligible to claim their medical expenses on line 331 of your tax return. Simply collect all of their medical receipts, add them up, deduct 3% of the dependent’s net income and claim the rest on your return.
Disability Tax Credit
- Has your dependent’s impairment lasted, or is it expected to last, for a continuous period of at least 12 months?
- Is he/she blind?
- Does he/she receive life sustaining therapy?
- Does his/her impairment restrict him/her in one of the following basic activities of daily living: speaking, hearing, walking, bowel or bladder function, feeding, dressing or performing mental functions necessary for everyday life.
If you suspect the answer is yes to any of the above, you should fill out a Disability Tax Credit Certificate (Form T2201) for your dependent which is partially filled out by you and partially filled out by a doctor. If your dependent does not need the disability tax credit to reduce their income taxes to zero, they may transfer it to you if you financially support that dependent.
Caregiver Amount
- Did you maintain a dwelling where your dependent lived with you at any time during the year?
- Is your dependent 18 years old or older?
- Is your dependent’s net income $19,435 or lower for the year?
- Does anyone other than you claim an amount for an eligible dependent for that person?
If you answered yes to all of the above questions, then you are eligible to claim the caregiver amount. If you find yourself caring for and/or financially supporting an elderly parent, grandparent or any other close relative, you should tell your accountant to ensure you are getting all the tax credits you are entitled to. It could save you thousands of dollars in income taxes a year.