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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.

Identification information

Identification information

Name	Rebecca Healy
Social insurance number (SIN)	000 000 000
Address	123 Main Street City, Province  X0X 0X0
Date of birth (DOB)	March 8, 1960
Marital status	Divorced
Dependant	Son: David Healey SIN: 000 000 000 DOB: March 8, 2007

Required slips

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

Text version of the above image

T4 – Statement of Remuneration Paid
Protected B
Employer’s name: 987654 Canada Ltd.
Employee’s name and address:
Last name: Healy
First name: Rebecca
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 31,224.00
Box 16: Employee’s CCP contributions: 493.34
Box 18: Employee’s EI premiums: 246.67
Box 22: Income tax deducted: 2,244.00
Box 24: EI insurable earnings: 31,224.00
Box 26: CCP/QPP pensionable earnings: 31,224.00

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 and the + sign next to T4 to enter the information from the tax slip
4. Click on add dependant next to the Family head (Rebecca Healy) tab
5. Click on Dependant ID in the left-side menu and complete the Dependant Identification page
6. Click Medical and disability in the left-side menu and click the + sign next to Infirmity and disability amounts for the dependant* in the Disability deductions, caregiver section
7. Enter Disability in the Name or description of dependant’s infirmity field
8. 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

The software automatically claims the Amount for an eligible dependant (line 30400), the Canada caregiver amount (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 is found on 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.

For more information, refer to UFile instructions.