Can a taxpayer claim the caregiver tax credit for a parent over 65 years of age who is also infirm?

The 2017 tax guide states "you must first claim on line 305 amount for eligible dependant". However the dependant's income is $17,000, too much for a claim on line 305. Why does Profile allow the caregiver tax credit when CRA is disallowing it.

Answer

Hello Vmoffatt,

Based on CRA info on 307:

You can claim an amount up to a maximum of $6,883 for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person was dependent on you because of an impairment in physical or mental functions and was 18 years of age or older.

You can also claim an amount for more than one person if each one meets all the following conditions. The person must have been:

  • your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
  • 18 years of age or older;
  • dependent on you because of an impairment in physical or mental functions; and
  • a resident of Canada at any time in the year. You cannot claim this amount for a person who was only visiting you. 

from https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

I tried this scenario on my end as follows in ProFile and it matches:

Taxpayer: t4 income

Dependent form: 

  • Parent
  • 17k income
  • DOB: 1950/01/01
  • Claim as eligible dep: No
  • Infirm: Yes

on Schedule 5, 307: i get roughly $6000

If our scenario matches, I would recommend calling the CRA to find out why they rejected the claim.

I hope that helps

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