Caring for dependants? Here’s a tax tip

The family caregiver credit helps Canadians caring for dependants with mental or physical impairments.

It offers a 15% non-refundable credit on an amount of $2,000, and was introduced in the 2011 federal budget. It can be claimed if clients are responsible for impaired spouses, common-law partners or minor children.

Specifically, the disability must be prolonged and indefinite. The child or partner must depend on someone to attend to all personal needs and care required of someone their age.

To prove the validity of their claims, clients may be asked to provide a signed statement from a medical doctor that provides information on the nature, commencement, and duration of the dependant’s impairment.

Also, make sure to tell them they can claim the amount for more than one eligible dependant.

Also read:

Tax tips for seniors

The CRA has posted tax submission tips and hints for seniors.

Managing a dependant’s relief claim

In estate administration, an advisor may come across a claim for dependant’s relief. This is an order for support for a particular dependant from the estate of a deceased person.

Plan for clients’ incapacities

A secure estate plan doesn’t end with an up-to-date will, as it should also anticipate possible future incapacity.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.