Chapter History S1-F4-C2, Basic Personal and Dependant Tax Credits (for 2017 and subsequent tax years) 

Introduction

The purpose of a Chapter History page is to highlight any amendments to the information contained in a chapter of an income tax folio, including amendments to the information originally contained in an interpretation bulletin that has been cancelled and replaced with a folio chapter. It outlines amendments that have been made as a result of legislative changes and proposed legislative changes, precedential court decisions, as well as new or revised interpretations of the Canada Revenue Agency (CRA).

Except as otherwise noted, all statutory references herein are references to provisions of the Income Tax Act, R.S.C., 1985, c.1 (5th Supp.), as amended and all references to a Regulation are to the Income Tax Regulations, C.R.C., c. 945, as amended.

Update August 5, 2020

Throughout the Chapter, references linking amounts to the Indexation Adjustment chart have been updated to reflect the revised titles used in the chart.

Update April 8, 2019

General

Income Tax Folio S1-F4-C2, Basic Personal and Dependant Tax Credits (for 2017 and subsequent years) is an update to Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits, which replaced and canceled Interpretation Bulletin IT-513R, Personal Tax Credits on April 29, 2017. Note that Income Tax Folio S1-F4-C1 has been renamed Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits (for 2016 and prior years).

This Chapter discusses the eligibility requirements of the personal tax credits for the 2017 and subsequent tax years. This Chapter History outlines any substantive technical and interpretative changes to the personal credits information outlined in Income Tax Folio S1-F4-C1. Going forward it will outline changes made to Income Tax Folio S1-F4-C2. Any substantive technical and interpretive changes to the information outlined in the former interpretation bulletin are described in the Chapter History for Income Tax Folio S1-F4-C1.

For tax years prior to 2017, please refer to Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits (for 2016 and prior tax years).

Legislative and other changes

The Chapter has been updated to reflect the new Canada caregiver credit. The Canada caregiver credit was enacted by S.C. 2017, c.20, s.12 and replaced the caregiver tax credit, the infirm dependant tax credit, and the family caregiver tax credit. In this Chapter, the Canada caregiver credit is referred to as the Canada caregiver tax credit (adult) and the Canada caregiver tax credit (child). All references to the previous credits have been removed.

¶2.16 has been added to describe the limitation in paragraph 118(4)(a.2) which states that income is computed without reference to the deduction on account of split income as added by S.C. 2018, c.12, s.11(3).

¶2.38 has been added to describe the expanded limitation in paragraph 118(4)(c) which prevents an individual from claiming the Canada caregiver tax credit (adult) for a person if the individual is entitled to claim the spouse or common-law partner tax credit for that same person, as added by S.C. 2017, c.20, s.12(5). An example has been included.