Part 5/6 - Caregiver Amount Tax Credit
By Anne Chun, C.A., CFP
This is part 5 of a series of articles on Eldercare/CA PrimePlus Services*.
In part 1 of this series, which discussed the various tax treatments of medical related expenses, Caregiver amount was identified as a tax credit and not a tax deduction. In this article, we will focus on the details of the Caregiver amount Tax Credit.
There are a number of conditions you have to satisfy before the tax credit can be claimed. These include:
If the above conditions are satisfied, you can claim a Caregiver amount Tax Credit of $3663 (2003 and indexed) less, in the case of a dependant, the dependant's net income in excess of $12,509 (2003 and indexed).
From a tax planning perspective, depending on the income of the dependant,
it may be more beneficial to claim the tax credit for infirm dependants
rather than the Caregiver amount Tax Credit.
*CA PrimePlus Services is a registered trademark of the Canadian Institute of Chartered Accountants. Eldercare/CA PrimePlus Services is a customizable range of financial management services for elderly and disabled persons.
Anne Chun, C.A. CFP is the principal of Anne Chun Professional Corporation,
providing financial, tax, estate and Eldercare services. She is also the
co-author of "Planning your Financial Future".
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