Claiming the disability tax credit and caregiver amount for a dependant

Instructions

1. Open the tax software
2. Review the Background information and Required slips (tax slips, receipts, etc.)
3. Provide all required information for the appropriate sections of the tax software
4. Once completed, compare your results with the solution provided
5. Afterwards, refer to the Takeaway points

Background information

Situation

Rebecca is a single parent who lives with her son David in her own home. David has a physical impairment and has been approved for the disability tax credit. David relies on Rebecca to provide him with food, shelter and clothing. He does not have any income and has no other caregivers. Rebecca wants to claim David as a dependant and claim all related credits. She also received Advanced Canada workers benefit payments.

Required slips

T4 – Statement of Remuneration Paid (987654 Canada Ltd.)

RC210 – Advanced Canada workers benefit (ACWB) statement

Review your results

Solution to Claiming the disability tax credit and caregiver amount for a dependant.

Takeaway points

Steps to follow

1. Review their background information and required slips
2. In Interview setup of the Family Head tab (Rebecca Healy), tick the box next to Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
3. Click T4 and employment income in the left-side menu, then the + sign next to T4 income (earned in any province except Quebec) to enter the information from the tax slip
4. Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip
5. Click add dependant next to the Family Head (Rebecca Healy) tab
6. Click on Dependant ID in the left-side menu and complete the Dependant Identification page
7. Click Medical and disability in the left-side menu, then click the + sign next to Infirmity and disability amounts for the dependant* in the Disability deductions, caregiver section
8. Enter the applicable information into the Name or description of dependant’s infirmity: field, then select Claim disability amount (default) from the Is the dependant eligible for the disability amount on federal line 31600? drop-down menu and Yes from the Does the dependant’s infirmity provide entitlement to the Canada caregiver amount? drop-down menu
9. In the Dependant’s unused disability amount section, select Let MaxBack decide from the Who should claim this dependant’s unused disability amount? drop-down menu

The software automatically claims the Amount for an eligible dependant (line 30400), the Canada caregiver amount for infirm children under 18 years of age (line 30500) and the Disability amount transferred from a dependant (line 31800) on Rebecca’s tax return. In this case, the Canada caregiver amount is claimed on line 30500 because David is Rebecca’s child and he is under 18 years of age. However, the Canada caregiver amount can be claimed for different lines (30300, 30400, 30425, 30450 and 30500) of a tax return depending on the individual’s relationship with the person who has a disability.

Although the information is not transmitted to the CRA, Name or description of dependant's infirmity: is still a mandatory field when claiming the disability tax credit. If the individual does not volunteer this information, simply enter Unknown into the field.

For more information, refer to UFile instructions.