To claim the Eligible Dependant amount, the Supporting Person:

• must be single, divorced, separated or widowed or
• married or in a common-law partnership, but did not live with the spouse, did not support the spouse, and was not supported by the spouse
• must support the dependent; and
• must live with the dependent in a home maintained by the Supporting Person.

The dependant must be the parent, grandparent, child, grandchild, brother, or sister of the Supporting Person.

A dependant who is a person with the eligible disability can be of any age.

The Canada Caregiver Credit is designed to provide tax relief to caregivers of dependants who have an infirmity and who are dependant on the caregiver for support because of that infirmity.

There are four different situations:

1. The Supporting Person, who is single, supports an Eligible Dependant who is 18 years of age or older; and

   The Supporting Person is eligible to claim the Eligible Dependant amount on line 30400 for this Dependant.

   The Supporting person can claim both:

   The Federal Canada Caregiver amount of $2,295 (there is no Ontario Canada Caregiver amount) when calculating the amount under line 30400

   2021 Eligible Dependant Amount Line 30400	Federal 15%	Ontario 5.05%
   Base amount	$13,808	$10,162
   Canada Caregiver amount	$ 2,295	Nil
   Total	$16,103	$10,162
   Less: Dependant’s Net Income	(           )	(in excess of $924)
   Claim under Line 30400	XXXXXX	XXXXXX

   And
   The Canada Caregiver amount of up to $7,348 for Federal tax purposes (and up to $5,128 for Ontario) on line 30425 depending on the Net income of the dependant and any claim on line 30400.

   2021 Canada Caregiver amount: Line 30425	Federal 15%	Federal- Income reduction	Ontario 5.05%	Ontario- Income reduction
   Base amount less	$7,348		$5,128
   Dependant’s Net Income		Net Income		Net Income
   Income Threshold		($17,256)		($17,544)
   Excess Net Income	(          )		(          )
   Claim under line 30400	(XXXX)		(XXXX)
   Canada Caregiver Credit Reduced Base*tax rate

2. The Supporting Person supports a dependant who is 18 years of age and over at the end of the year; and

   The Supporting Person is eligible to make a claim for the Canada Caregiver Amount on line 30450 for this dependant.

   The Supporting Person can claim the Canada Caregiver amount of up to $7,348 for Federal tax purposes (and up to $5,128 for Ontario), depending on the net income of the dependant.

   2021 Canada Caregiver amount: Line 30450	Federal 15%	Federal- Income reduction	Ontario 5.05%	Ontario- Income reduction
   Base Amount less	$7,348		$5,128
   Dependant’s Net Income		Net Income		Net Income
   Income Threshold		($17,256)		($17,544)
   Excess Income	(            )		(            )
   Canada Caregiver Credit Reduced Base*tax rate

3. The Supporting Person, who is single, supports an Eligible Dependant who is under 18 years of age at the end of the year; and

   The Supporting Person is eligible to make a claim  for an Eligible Dependant on line 30400 for the Dependant.

   The Supporting Person can claim the Federal Canada Caregiver amount of $2,295 on line 30400 (there is no Ontario Canada Caregiver amount) and the Federal tax credit is $344.

4. The Supporting Person supports an infirm child who is under 18 years of age at the end of the year; and

   The child lived with both the Supporting Person and the spouse or common-law partner.

   The Supporting Person can claim the Federal Canada Caregiver amount $2,295 on line 30500 (there is no Ontario Canada Caregiver amount) and the Federal tax credit is $344.

The HATC is a non-refundable tax credit that is available to “qualifying individuals” who are:

• individuals who are over the age of 65 or
• individuals who are eligible for the DTC.

The HATC is based on qualifying expenses incurred for work done or goods purchased in respect of a qualifying renovation of a housing unit located in Canada. The housing unit must be the principal residence for the qualifying individual. The renovation must allow the qualifying individual to gain access to, or to be mobile or functional within the housing unit.

The HATC base amount is the lesser of $10,000 and the amount of the qualifying expenses.

Ontario does not have an equivalent HATC.

Some expenditures that qualify for the HATC can also qualify for Medical Expense Tax Credit (METC). The same expenditure can be used to qualify for two separate credits, the HATC and the METC

2021 HATC Line 31285	Federal Tax rate: 15%	Ontario
Lesser of: Qualifying expenses and	XXXXXX
Base amount	$10,000	Nil
Lesser Amount
HATC: Lesser amount*tax rate

Who else can claim the unused HATC:

An eligible individual is any of the following:

1. a spouse or common-law partner of a qualifying individual
2. a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of a qualifying individual, or of the qualifying individual’s (spouse or common-law partner) that has claimed the amount for an “eligible dependant,” “caregiver amount,” or amount for an “infirm dependent age 18 or older” for the qualifying individual, or could have claimed such an amount if:
   • the qualifying individual had no income
   • for a qualifying individual who is a child, if that child had been 18 years of age or older in the tax year
   • in the case of the “eligible dependant” amount, the individual was not married and not in a common-law partnership
   • in the case of the amount for an “infirm dependant age 18 or older,” where the qualifying individual who is 65 years of age or older at the end of a year, and is not eligible to claim the disability tax credit, the qualifying individual was dependent on the individual because of mental or physical infirmity
3. if (2) does not apply, an individual who is entitled to claim the disability amount for the qualifying individual, or would be entitled if no amount was claimed for the year by the qualifying individual or the qualifying individual’s spouse or common-law partner

An individual can claim a non-refundable tax credit for medical expenses paid by the individual or the spouse or common-law partner.

There are two separate calculations:

1. Line 33099: The first calculation is for medical expenses paid in respect of:
   • the individual
   • the spouse or common-law partner
   • children under the age of 18

   The formula:

   The amount by which the eligible medical expenses in respect of the above listed people exceeds the lesser of the following two amounts:

   • a fixed amount; and
   • 3% of the individual’s net income for the year.

   Medical Expense Tax Credit – 2021 Line 33099	Federal Tax rate: 15%	Ontario Tax rate: 5.05%
   Excess of Eligible medical expenses over
   Lesser of: Fixed amount; and	$2,421	$2,463
   3% Individual’s Net Income
   Excess
   METC (Excess*tax rate)

2. Line 33199: The second calculation is for medical expenses paid for other eligible dependants.

   For this purpose, a dependant of an individual for a particular tax year is defined to be a person who is:

   • a child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or of the individual’s spouse or common-law partner;
   • dependent on the individual for support at some time in the year; and
   • a resident of Canada at some time in the year (unless the dependant is the child or grandchild or spouse or common-law partner of the individual)

   The formula:

   The amount by which the individual’s eligible medical expenses in respect of the dependant exceeds the lesser of:

   • a fixed amount; and
   • 3% of the dependant’s net income for the year

   Medical expense tax credit – 2021 Line 33199	Federal:  Tax rate 15%	Ontario: Tax rate 5.05%
   Excess of Eligible Medical expenses over
   Lesser of: Fixed amount; and	$2,421	$2,463
   3% of dependant’s net income
   Excess
   METC: Excess*tax rate

[Ontario: Maximum Eligible Medical Expense for other dependants is $13,274]

General rules:

• Generally, all eligible medical expensescan be claimed, even if they were incurred outside of Canada.  When medical expenses are reimbursed by an insurance plan, only the portion not reimbursed can be claimed
• Medical expenses can be claimed if they were paid within any 12-month period ending in the calendar year.

Interaction between the METC and the DTC and other deductions

• As mentioned in the section about the DTC, where any person claims the remuneration for an attendant or for care in a nursing home for the person with a disability for purposes of the METC, no one can claim the DTC
  • There is an exception where the amount claimed as an eligible medical expense is the lesser of the amount paid as remuneration and $10,000, the DTC may also be claimed. (For residents of Ontario, the provincial limit is $15,046).
• Where the medical expenses are claimed as eligible medical expense for purposes of the METC, these medical expenses must not have been used in calculating the individual’s disability supports deduction.

Special rules that allow the medical expenses to be claimed for more than one tax credit:

• As mentioned in the section about the Home Accessibility Tax Credit (HATC), some expenditures that qualify for the HATC can also qualify for METC.

If an individual has an impairment in physical or mental functions, the individual may be able to deduct the expenses paid in the year so that the individual is able to:

• work
• go to school
• do research for which a grant was received

The list of eligible expenses includes Attendant expenses.  Please see https://www.canada.ca/…/line-21500-disability-supports-deduction.html

The individual should use Form T929, Disability Supports Deduction, to calculate the deduction.

How to claim the Disability Support Expense:

The Disability Support Expense is an expense, not a tax credit, and is used as a deduction to calculate Net Income.

The individual should enter the amount from line 12 of Form T929, Disability Supports Deduction, on line 21500 of the tax return.

Expenses must be claimed in the same year they are paid.

Unused amounts cannot be applied to another year.

The individual cannot claim amounts for which anyone was reimbursed or entitled to be reimbursed by a non-taxable payment, such as insurance

Interaction between Disability Support Expenses and METC

The individual cannot claim amounts that were claimed by any person as medical expenses (lines 33099 or 33199) as Disability Support expenses. This includes Attendant expenses.

However, the individual can claim the medical expense on either line 21500 (Disability Support expenses) or line 33099 (Medical expenses under the first calculation). They could also split the claim between these two lines, as long as the total amount claimed is not than the total expense.

The Federal Refundable Medical Expense Supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses. All of the following conditions must apply:

• The individual made a claim for medical expenses on line 33200 or for the disability supports deduction on line 21500.
• The individual was a resident in Canada throughout 2021.
• The individual was 18 years of age or older at the end of 2021
• The individual must have employment or self-employment income exceeding $3,751.

For 2021, the maximum Refundable Medical Expense Supplement:

The lesser of:

• $1,285, or
• 25% of both medical expenses (line 33200) and disability supports expenses (line 21500)

Less

5% of combined net income (taxpayer and spouse) in excess of $28,446

The Refundable medical expense supplement is eliminated when the combined net income reaches $54,146.