Part 6/6 - Disability Tax Credit transfer
By Anne Chun, C.A., CFP
This is part 6 of a series of articles on Eldercare/CA PrimePlus Services*.
In part 1 of the series, which discussed the various tax treatments of
medical related expenses. Disability Tax Credit was identified
as a tax credit. In part 3 of the series, we discussed the details of
the Disability Tax Credit. In this article, we will focus on the
details of transferring the Disability Tax Credit to another person.
There are a number of conditions you have to satisfy before you can claim
the unused part of the Disability Tax Credit from another person.
- Transfer to a spouse-any portion of the unused Disability Tax Credit
may be transferred to a spouse. In addition, the $10,000 Medical
Expenses Tax Credit for attendant care or the remuneration paid
to a group home can be claimed by either spouse and does not have to
be claimed by the patient first.
- Transfer where the disabled person was claimed as an Eligible Dependant-provided
the disabled person's spouse is not claiming the Spouse amount or any
of the transfers on Schedule 2 including the transfer of the Disability
Tax Credit. Conditions to claim the disabled person as an Eligible
Dependant require the disabled person to be a resident of Canada
for tax purposes (unless he/she is your child), that the disabled person
was living with you in a dwelling that you maintained, and that you
are related by blood, marriage or adoption. If these conditions are
satisfied, you can claim the Eligible Dependant Tax Credit for
a parent, grandparent, or a relative who was born in 1984 or earlier
and was mentally or physically infirm, or a person who was under 18
when you provided support.
- Transfer to a parent, child, brother or sister-if you have a disabled
parent, child, brother or sister living with you in a self-contained
domestic establishment and wholly dependant on your household for support,
you may (if there are no spousal claims) claim the unused portion of
the Disability Tax Credit. You can claim it even if you yourself
are married and the disabled person has enough income to disallow the
Eligible Dependant claim. A parent or child of the disabled person
may claim the unused portion of the disabled person's disability amount
if the disabled person's spouse is not claiming either the spousal amount
or any transfer credit, and no one is claiming the disabled person as
an Eligible Dependant.
- You can make claim the unused portion of the Disability Tax Credit
for each (Canadian resident) parent or child of you or your spouse who
either lives with you in a self-contained domestic establishment or
is dependant on you by reason of infirmity, whether living with you
*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".