You live with type 1 diabetes (T1D) and are in a relationship. Can your partner claim the Canadian caregiver credit (CCC)? You have one or more children living with T1D. Are you eligible for this non-refundable tax credit (which reduces your income tax payable)?

The answer depends on your personal and family situations, as well as your income.

What is the Canadian caregiver credit?

The Canadian caregiver credit (CCC) provides financial support to Canadians who care for or support a dependent relative living with a physical or mental limitation. 

An adult is considered dependent if they rely on a relative to pay for or help meet all or part of their basic needs (food, shelter and clothing). 

Parents who want their child under the age of 18 to be considered dependent must prove that the child requires significantly more help with personal needs and care than other children of the same age due to an impairment in physical or mental functions, and that this will likely be the case for a long, uninterrupted period.

In the context of T1D, the DTC may make you eligible to the caregiver credit

Children under the age of 18 living with T1D automatically qualify as dependents if they are already approved for the Disability Tax Credit (DTC) by the Canada Revenue Agency (CRA) (see Form T2201). These children’s caregivers may receive the CCC, as long as they don’t already receive a dependent’s amount for another person.

This is not necessarily the case for all adults with T1D. Indeed, the dependent status is not guaranteed even if you receive the DTC. For example, the CCC will not be granted to the life partner of a person with T1D who manages their own personal care, daily tasks and finances. However, an adult who takes care of grocery shopping and daily meal preparation for a senior relative with T1D is eligible for the CCC, as long as the income of the person receiving help is below a certain threshold (i.e., less than $28,041 for 2024).

Who can apply for this credit?

As the parent of a child with T1D who receives the DTC, you automatically qualify for the CCC until your child turns 18. You must claim the credit on your income tax return (line 30500). Only one parent can apply for the credit for each child. If you are a separated couple, you cannot split this amount between two tax returns. 

And if you are an adult with T1D, you cannot claim this credit for yourself. Only a relative who assists you can claim it. This may include:

  • your life partner;
  • one of your children or grandchildren (or those of your spouse or common-law partner);
  • one of your parents, grandparents, brothers, sisters, uncles, aunts, nephews or nieces (or those of your spouse or common-law partner) residing in Canada at any time during the year.

The person applying for the CCC doesn’t have to live with you. However, they must prove that they financially and physically support at least one of your basic needs (the CRA may request a note signed by a health professional as proof). The amount of the tax credit can be divided between multiple caregivers or transferred from one to another, but only one claim is allowed per person cared for.

The dependent’s income must also be taken into account. In 2024, the value of the credit starts decreasing at the $19,666 annual income threshold until the maximum income allowed, which is $26,782 per year.

A financial professional can help demystify it all

Each case is unique; it’s best to check your eligibility with a financial advisor. They will be able to analyze your situation and help you obtain all the credits to which you are entitled.

Resources:


Facebook


Twitter


Instagram

Written by: Nathalie Kinnard, scientific writer and research assistant

Reviewed by:

  • Sarah Haag, R.N., B.Sc.
  • Michel Dostie et Claude Laforest, patient partners of the BETTER project.