The federal government is expanding and modifying certain tax credits, with a focus on enhancing the tax benefits available to caregivers, persons with disabilities and students.<\/p>\n
In Budget 2017, tabled in Ottawa on Wednesday, the federal government revealed plans to overhaul the tax benefits available to caregivers.<\/p>\n
“Though our universal health care system is a source of pride for many Canadians, we know that more can be done for families caring for aging or disabled loved ones,” said Finance Minister Bill Morneau in his budget speech on Wednesday. “It’s why this budget provides support for caregivers helping loved ones at home, and makes it easier for Canadians living with disabilities to get the tax relief they need.”<\/p>\n
Specifically, the government is proposing to simplify the caregiver tax credit system, which currently includes the caregiver credit, infirm dependent credit and family caregiver tax credit \u2014 each of which have different eligibility rules.<\/p>\n
“It’s very complex,” says Debbie Pearl-Weinberg, executive director of tax and estate planning with Canadian Imperial Bank of Commerce’s wealth-strategies group in Toronto.<\/p>\n
Budget 2017 proposes to replace the three existing caregiver credits with a single new non-refundable credit: the Canada caregiver credit.<\/p>\n
“This makes it less complex for those involved,” says Pearl-Weinberg. “It’s positive for a person who has to navigate their way through that tax credit system.”<\/p>\n
The new credit will provide tax relief this year on an amount of:<\/p>\n
The new credit will also extend tax relief to more caregivers, and particularly those providing care to dependent relatives who do not live with their caregivers. Specifically, the income threshold for the dependent at which the credit begins to phase out will be increased to $16,163 in 2017. This threshold, along with the amounts for the credit, will be indexed to inflation for future tax years.<\/p>\n
Read: Budget 2017<\/a><\/strong><\/p>\n
Watch: Budget 2017: Expanded tax credits<\/a><\/strong><\/p>\n
The measure will apply to disability tax credit certifications made on or after Budget Day.<\/p>\n
This measure will apply to the 2017 and subsequent taxation years.<\/p>\n
Photo copyright: jvaillancourt\/123RF<\/em><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"