Tax Tips for CaregiversWelcome to 2013! With the New Year here we can get started on our taxes for 2012 anytime. These tax tips will help caregivers maximize your 2012 return and are also great to keep in mind for the upcoming year.
With 2013 here we can start tidying up last year's business - including taxes.
They call it the Sandwich Generation – those adults in their middle years who find themselves caring for aging parents as well as growing children. And the pressures – including the financial ones – can be even greater when those being cared for have physical or mental challenges.
“You may be eligible to claim a tax credit for the caregiver amount if – either alone or with another person – you maintained a home where you and one or more of your dependents, or those of your spouse or partner, lived,” explains Chartered Accountant Kevin Dunn in Peterborough.
You may be able to claim a maximum Federal credit of $4,282 for each eligible dependent, who includes not just your own children or grandchildren, but many members of extended family, too. There is an equivalent Ontario Caregiver Credit as well.
“To qualify for the amount, each person being cared for must be 18 years of age or older and be dependent on you due to an impairment in physical or mental functions,” Dunn continues. “Or, in the case of a dependent parent or grandparent, they must have been born in 1946 or earlier. And, the person in question must have had a net income of less than $18,906 in 2011 (or 2012).”
There are other rules and considerations, so Dunn recommends that you consult with a Chartered Accountant in your home community about your personal situation.
Brought to you by The Institute of Chartered Accountants of Ontario
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