Family Caregiver Amount (FCA) Tax Credit

The 2011 Budget introduced a Family Caregiver Tax Credit, beginning in 2012.  The legislation is included in Bill C-13, which received Royal Assent (became law) on December 15, 2011.  Yukon is also providing the Family Caregiver Tax Credit.

This is a non-refundable tax credit based on an amount of $2,000, at the lowest tax rate of 15% federally, 7.04% for Yukon.  Only one family caregiver amount will be available in respect of each infirm dependent.

This tax credit provides an increase of $2,000 to

• The spousal amount (line 303 of Schedule 1), if the spouse or common-law partner is dependent on the individual by reason of mental or physical infirmity
• the equivalent to spouse/eligible dependent amount (line 305 of Schedule 1), if

1. the dependent who is age 18+ at the end of the year is, at any time in the year, dependent on the individual by reason of mental or physical infirmity
2. the dependent who is under 18, is not a child for whom the taxpayer is claiming the child amount, and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the dependent person’s personal needs and care, when compared to persons of the same age, and was so dependent on the individual at any time in the year

• the child amount (line 367 of Schedule 1), for each child who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s personal needs and care, when compared to children of the same age
• the caregiver amount (line 315 of Schedule 1), if the person is dependent on the individual by reason of mental or physical infirmity
• the infirm dependent (18+ years of age) amount (line 306 of Schedule 1)

1. The infirm dependant amount now automatically includes the family caregiver amount.  The 2012 amount is $12,822 less the greater of $6,420 or the dependent’s income, resulting in a tax credit amount of $6,402 when the dependent’s income is less than $6,420.  See the 2012 table of non-refundable tax credits.

Schedule 5 of the personal tax return is completed in order to claim the family caregiver amount.

The $2,000 will be indexed for inflation starting in 2013.

Canada Revenue Agency (CRA) Resources: Family Caregiver Amount (FCA)