It’s one of three important tax credits the vast majority of families often
miss out on. It’s why I have covered the topic extensively in the 2018
version of my book
Essential Tax Facts – How to Make the Right Tax Moves and Be
Here’s what you need to know: The DTC is a non-refundable tax credit, which
translates to a federal real dollar amount of over $1,200 – close to
$2,000, depending on where you live in Canada.
Those who miss making the claim can recover it 10 years back, too. So do
the math – it’s a big number and worth the extra attention to your prior
Who can verify the claim?
It’s a prerequisite that a medical practitioner certify your claim;
therefore an important fall project is to make the appointment to get the
T2201 Disability Tax Credit Certificate
Note that medical doctors can certify most types of conditions, while nurse
practitioners have also been added to the list of qualified professionals
effective March 22, 2017. Any charge for this is claimable as a medical
expense. In addition, CRA must accept the certificate, and that’s where
much of the controversy has originated over the last year.
A disabled person for the purposes of this credit is one who has a “severe
and prolonged impairment in mental or physical functions.” When a taxpayer
claims expenses for an attendant or the cost of nursing home care for a
patient as a medical expense, neither that individual nor any other person
may claim the Disability Tax Credit (DTC) or transfer it from that patient.
But, the DTC can still be used if the claim for an attendant is less than
$10,000 ($20,000 in the year of death).
Expenses claimable for these purposes can include fees paid for nursing
home residence, full-time care in personal residence, or care in a group
home plus costs for a special school or detox centre, which may qualify as
both medical expenses and tuition fee credits. But this generally does not
include “stop smoking” treatment unless it’[s part of a medical treatment
prescribed and monitored by a medical practitioner.
Working with a
DFA-Tax Services Specialist
is important, as these professionals will provide expert services in
claiming and recovering these credits for families and charge a reasonable
fee for doing so – by the form or by the hour. Stay away from those who
charge a percentage of the refunds.
Recover missed credits
Remember that you can recover missed credits over a 10-year period by
filing an adjustment to prior filed returns. A tax specialist can help you
with this as well.
Claiming the Canada Caregiver Credit
© 2018 The Knowledge Bureau, Inc. All rights reserved. Reprinted with
is the founder and President of Knowledge Bureau, which
brings continuing financial education in the multiple areas of
specialization to advisors and their clients. She is the author of 52
books on tax and wealth planning. This article
originally appeared in the
Knowledge Bureau Report. Follow Evelyn Jacks on Twitter
@EvelynJacks. Visit her blog at www.evelynjacks.com.
Notes and Disclaimer
The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.