Every year tax filers—professional and do-it-yourselfers alike—face the challenge of making a claim for family members whose health has changed. Aside from the Spousal Amount, a Canada Caregiver Amount is available. It’s a complex claim and it’s made on Schedule 5 of the T1 return. Here are some of the nuances.
Let’s begin with making a claim for a spouse, common-law partner, or eligible dependants who are either under or over age 18.
A spouse is someone to whom the taxpayer is legally married, or a common-law spouse or partner with whom the taxpayer has lived for at least 12 consecutive months, or if the couple had a child together at any time during the year. In the case of separation or divorce, it may be possible to claim the Amount for Eligible Dependant for one child per household.
If you are making the claim for a spouse or eligible dependant, the Canada Caregiver Amount may be claimable. But it cannot be split with another taxpayer and it can’t be claimed for someone who is just visiting the taxpayer. In 2025, the Canada Caregiver Amount is a claim of $8,624, which must be reduced if dependant’s income is between $8,624 and $28,798.
In addition, you can claim $2,687 as an additional amount for the Spousal Amount or Amount for Eligible Dependant. But what if you are not making a claim for dependants under these two provisions? In other words, the dependant is not being claimed as an “equivalent to spouse” amount.
Deadlines, tax tips and more
One area tax filers often get confused is around the criteria for making a Canada Caregiver Amount claim and, potentially, an additional claim for the Disability Amount (also known as the Disability Tax Credit or DTC) elsewhere on the return. The instructions on Schedule 5 have been enhanced this year to clarify the CRA’s position for these purposes:
The term infirmity will generally refer to physical weakness, often due to age or disease. CRA notes that this “implies a dependency on others for a considerable but not necessarily indefinite period.”
Specific documentation is not strictly required in this case, though the Canada Revenue Agency (CRA) may ask for a signed statement from a medical practitioner verifying the impairment’s start and expected duration.
In the case of minor children, the CRA may ask for a medical note. In its guidance to taxpayers, the agency indicates the medical statement “should show that the child is dependent on others for significantly more assistance in attending to personal needs and care than other children of the same age. Due to the mental or physical infirmity, the dependence on others is expected to last for a long and continuous period of indefinite duration.”
In short, there are significant grey areas and assessments of claims are on a case-by-case basis. The key differentiator for the purposes of claiming the Disability Tax Credit, however, is that the condition is severe, prolonged (lasting at least 12 months starting in the tax year), and markedly restricts daily living activities.
There are other complexities that emanate from illness and incapacity, including how to claim medical expenses when there are attendant care or nursing home costs involved, or modifications to make a home more accessible. There are also tax planning opportunities in cases when a move is required to a more accessible home.
These circumstances of illness or incapacity are triggers for potential tax savers. The secret to success? Take the time to understand the tax consequences when there are life-cycle changes in the family, and pay attention to the documentation requirements should a tax audit occur after filing. In the event of the latter, do not be alarmed. This is not unusual when claims for incapacity start to occur within the family, and a tax specialist will be able to help if you need it.
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