CANADA SPOUSAL, DEPENDANT and CAREGIVER TAX CREDITS

What are these credits?

There are five related non-refundable tax credits, all calculated on Schedule 5. They apply when a taxpayer provides support to a low-income spouse or dependant. Importantly, the credit goes to the person providing support—not the person receiving it. These credits can be significant in value.

1. Line 30300 – Spouse or Common-Law Partner Amount
   Claimed by the higher-income spouse. The amount equals the basic personal amount minus the net income of the lower-income spouse. An additional amount is available if the supported spouse is infirm.
2. Line 30400 – Amount for an Eligible Dependant
   Claimed when a taxpayer supports a wholly dependent relative who lives with them and has a low income.
3. Line 30425 – Canada Caregiver Amount for Infirm Spouse or Adult Dependant
   Available if the taxpayer is claiming either Line 30300 or 30400 and the dependant is an adult with an infirmity.
4. Line 30450 – Canada Caregiver Amount for Other Infirm Dependants (Age 18 or Older)
   Claimed when a taxpayer supports an adult relative with an infirmity.
5. Line 30500 – Canada Caregiver Amount for Infirm Children (Under 18)
   Claimed when a taxpayer supports a child under 18 who has an infirmity.

A longer description of these credits is below.

1.  Line 30300: Spouse or Common-Law Partner amount:

This credit may be claimed where an individual provides financial support to a spouse or common-law partner.

Calculation of the credit:

• Standard calculation:
  Basic personal amount – spouse’s net income
• Where the spouse is dependent due to a physical or mental infirmity:
   (Basic personal amount + $2,616) – spouse’s net income

Definition of “support”:
The Income Tax Act does not define “support.” The CRA accepts that support exists where the higher-income spouse contributes to the basic necessities of life, such as food, shelter, and clothing. The credit is based on financial support, not dependency.

Example:
For 2024, the basic personal amount is $15,705. If the supported spouse’s net income is $5,000, the credit is:
$15,705 – $5,000 = $10,705.
As is apparent from the calculation, no credit is possible if both spouses’ net incomes exceed the basic personal amount.

Special considerations:

• Becoming spouses during the year: If the couple is married or common-law on December 31, the credit is determined using both spouses’ full-year incomes, regardless of when the relationship began.
• Separation before year-end: The spouse filing must report the ex-spouse’s income up to the date of separation.
• Separation with support payments: The rules are more complex; reference should be made to Schedule 5 or the CRA Income Tax Folio.
• Living apart: Cohabitation is not required in order to claim the credit.
• Non-resident spouse: The credit may be claimed if actual financial support is provided and the couple is not separated due to marital breakdown. However, if the non-resident spouse has sufficient income or assistance to maintain a reasonable standard of living in the country of residence, they are not considered supported. Gifts that merely supplement an already adequate lifestyle do not qualify as support.

Proof of support for a non-resident spouse:
CRA may require evidence of support, which could include:

• receipts for money orders or bank drafts,
• cancelled cheques negotiated by the spouse, or
• receipts from money transfer agencies.

In assessing eligibility, the CRA may also review:

• the spouse’s income,
• support provided by government agencies in the spouse’s country of residence (e.g., pensions, healthcare, housing),
• cost of living in that country,
• the spouse’s ability to self-support, and
• any support received from other persons.

2.  Line 30400: Eligible Dependant amount (wholly dependent): 

This credit may be claimed if, at any time during the year^[1], an individual:

• did not have a spouse, or
• had a spouse but did not live with or support that spouse,

and instead supported another individual who:

• lived with them in a self-maintained home, and
• was wholly dependent on them for support.

Amount of the credit:

Basic personal amount – dependant’s net income

Who can be claimed as a dependant:

• a relative under 18 (whether infirm or not)^[2],
• a parent or grandparent (whether infirm or not), or
• a relative 18 or older, if dependent due to physical or mental infirmity.

Key rules and conditions:

• Only one dependant can be claimed, even if multiple are eligible.
• A person cannot claim both the spousal amount (Line 30300) and the dependant amount (Line 30400).
• Support means providing basic necessities of life (food, shelter, clothing).
• “Wholly dependent” generally means the dependant relies almost entirely on the taxpayer for well-being. For a child, this includes responsibility for day-to-day upbringing (e.g., ensuring schooling, providing necessities).
• A dependant away at school may qualify if they ordinarily live with the taxpayer when not in school.
• A foster child is not considered wholly dependent where government support payments are received for their care.
• The dependant must normally be a resident of Canada, unless they are the taxpayer’s child.

• If an individual is wholly dependent on more than one person (e.g., parents maintaining a household together), only one may claim the credit.
• If the dependant is a child under 18 with an infirmity, the caregiver credit at Line 30500 may also be claimed.
• Separated or divorced parents:

• One parent can claim the credit for a child in shared custody, even if the child is not wholly dependent on either parent.
• A parent paying child support cannot claim the credit, unless both parents pay support to each other. If both qualify, they must decide who will claim, as the credit cannot be split.

3.  Line 30425: Caregiver Amount for spouse or common-law partner, or eligible dependant age 18 or older:

A supporting individual who qualifies for the spousal amount (Line 30300) or the eligible dependant amount (Line 30400) may also claim this caregiver credit if the supported person is dependent due to a mental or physical infirmity.

Calculation:

($28,041 – the supported person’s net income) or $8,375, whichever is less − the amount claimed on Line 30300 or 30400.

4.  Line 30450: Caregiver Amount for infirm dependants age 18 or older (adult):

This credit applies only if no claim is made on Line 30300 or Line 30400 for the dependant.

The cared-for individual must be a spouse or qualifying relative who is dependent for support because of a mental or physical infirmity.^[3] Unlike the eligible dependant amount (Line 30400), the individual does not have to be wholly dependent—only dependent.

Key points:

• The dependant does not need to live in the same household as the supporting person.
• A T2201 Disability Tax Credit Certificate is not required.
• Eligible relatives include a child, grandchild, parent, grandparent, brother, sister, aunt, uncle, niece, or nephew of the claimant or their spouse. (Cousins are excluded.)
• For relatives other than a child or grandchild, the dependant must be a resident of Canada, not merely visiting.
• A caregiver amount may be claimed for each eligible dependant, if there is more than one.

Amount calculation:

$28,041 – the dependant’s net income. (maximum $8,375)

5.  Line 30500: Caregiver Amount for infirm children under 18 years of age (child)

A parent may claim $2,616 for each child under age 18 who:

• lives with them, and
• is dependent because of a mental or physical infirmity that requires ongoing, long-term support, with a need for much more personal care than other children of the same age.

A T2201 Disability Tax Credit Certificate is not required.

In addition, one of the following conditions must be met for each child:

1. The child ordinarily resides with the parent throughout the tax year together with the other parent; or
2. The parent is entitled to claim the eligible dependant credit (Line 30400) for the child; or
3. The parent would have been entitled to claim the eligible dependant credit (Line 30400) if any of the following applied:

• They had not claimed the spousal credit (Line 30300) or the eligible dependant credit for another dependant;
• They had not lived with another individual who claimed the eligible dependant credit for a different dependant; or
• The child had no income for the tax year (i.e., income was less than the maximum threshold for an eligible dependant).

Meaning of “mental or physical infirmity”:

This wording in quotation marks is used in the Income Tax Act and is the actual legal wording to consider. Nevertheless, the CRA often uses less formal wording which they consider equivalent: “impairment in physical or mental functions”, including in Schedule 5 and on web pages.  A T2201 Disability Tax Credit Certificate is not necessary.

Mental or physical infirmity is not defined in the Income Tax Act. According to tax court cases, infirmity means physical weakness, debility, frailty or feebleness of body resulting from a defect in the whole of a person's health and vitality. The degree of the infirmity must be such that it requires the person to be dependent for a considerable period of time. Temporary illness or injury does not qualify.

There must be a degree of severity or persistence of health problems or deteriorated vitality that can readily be said to be abnormal. Further, there must be a causal connection between the abnormal state of health or vitality and the dependence so that a general malaise or simple frailty that does not convincingly result in dependence, will not meet the requirements. The question is whether there is actual dependence for economic support at any time in the year by reason of abnormally poor health or deteriorated vitality.

If no T2201 certificate is available, the CRA may require a signed statement from a medical practitioner confirming:

• when the infirmity began, and
• the expected duration.

For children under 18, the statement should also confirm that:

• the child is, and will likely remain, dependent for a long and continuous period, and
• the child requires significantly more assistance with personal needs and care than other children of the same age.

This medical statement does not need to be obtained before filing a return. It can be prepared later, if and when requested by the CRA.

Meaning of “dependent for support”:

“Dependent for support” is a lower threshold than “wholly dependent”. Dependency has to do with levels of subsistence not levels of maintenance of lifestyle. An individual who cannot fully provide for their own subsistence but has some resources—and therefore is not wholly dependent—may still be considered dependent for support if assistance is required.

The CRA partially addresses the term “dependant for support” in the Folio for the dependant and caregiver credits.^[4] However the CRA addresses the wording more fully in the Folio for the disability tax credit.^[5] To claim a transfer of the disability tax credit, the person seeking the transfer must claim either the dependant tax credit, or else the adult caregiver credit (or could claim the dependent tax credit if the dependent did not have income). Therefore the dependant and caregiver credits are linked to the disability tax credit and addressed in that folio.

The DTC Folio includes the following explanation of dependant for support, which is largely derived from court decisions:

In each case, it is a question of fact, whether the actions or contributions of an individual are of such a nature and degree that they could be said to constitute support of another person. Although consideration should be given to the availability and quantum of support provided, a person is generally considered to be dependent on an individual if the latter has actually supplied necessary maintenance out of their own resources. In this regard, the individual must provide some or all of the basic necessities of life (such as food, shelter, and clothing) on a regular and consistent basis, and the person had to actually rely on such contributions from the individual.

For the purposes of determining dependency upon another individual, the facts should indicate that the support was not given solely in the form of a gift or gifts from that other individual. Rather, the eligible person with a disability must have been dependent upon that other individual for the support given. Consideration should be given to the relationship between the eligible person with a disability and the other individual throughout the particular period during which support was provided, to determine whether the relationship as a whole was one of dependency.

Where the eligible person with a disability was in receipt of social assistance or any other type of financial or non-financial support, the supporting individual must be able to show that the other assistance was insufficient to fully meet the basic needs of the eligible person with a disability and that the person had to rely on the additional support provided by the supporting individual.

Financial support involves providing money in order for the person to acquire basic necessities of life such as food, shelter, and clothing. Non-financial support refers to the direct provision of such necessities to that person.

Support that does not relate to providing the basic necessities of life, such as (but not limited to) visiting the eligible person with a disability each day or providing them moral support, does not qualify.

Making contributions toward the basic necessities of life such as (but not limited to) preparing or buying a meal for the eligible person with a disability or paying one of that person’s medical bills also does not qualify if the latter is not dependent or reliant on such contributions from that individual.

UFile steps:

UFile generally calculates Schedule 5 credits automatically when the requirements are met. However, the tax preparer should review the return before e-filing—particularly in complex situations—to ensure the correct credits appear on the appropriate lines.

Situations where extra UFile steps may be required:

        Only basic information available for a spouse:

• If preparing a return for only one spouse attending the clinic, and ‘basic information’ is used a spouse not at the clinic, and the spouses have a child, the dependant amount (Line 30400) should only be claimed if the absent parent has not or will not be claiming it.

Client’s spouse is non-resident:

• If a client’s spouse is not resident in Canada, UFile will by default claim the spousal credit if applicable. If the client did not support their non-resident spouse, then go to the Controls section, and answer “do not claim” to the question, Are you eligible to claim the spousal amount (line 30300) on your return?

        Infirm spouse:

• If basic information is provided for the infirm spouse, then answer ‘yes’ in the basic information section to the question, If your spouse has an impairment, does his or her impairment provide entitlement to the Canada caregiver amount?
• If complete information is provided, under Medical and disability, click the plus sign next to Infirmity and disability. Answer ‘yes’ to the question, does the infirmity provide entitlement to the Canada caregiver benefit?  If the dependant does not have a T2201, then answer, Do not claim disability amount to the question, Is the dependent eligible for the disability amount on federal line 31600? 

Infirm dependant:

• For a dependent with an infirmity, under Medical and disability, click the plus sign next to Infirmity and disability. Answer ‘yes’ to the question, does the infirmity provide entitlement to the Canada caregiver benefit?  If the dependant does not have a T2201, then answer, Do not claim disability amount to the question, Is the dependent eligible for the disability amount on federal line 31600? 

Infirm adult child over 18 not living with parent:

• Consider a situation where an infirm adult child is partially dependent on a parent but does not live with them. In this case, the only applicable credit is the Line 30450 Canada caregiver amount for infirm dependants age 18 or older.
• In UFile, if the parent is entered as the family head and the adult child as a dependant, and the child is identified as infirm, the software will incorrectly apply the Line 30400 eligible dependant credit instead of Line 30450.
• To partially correct this error, go to Controls for the dependant. For the question, “Claim this dependant as the eligible dependant on line 30400”, answer “Do not claim”. This will cause UFile to claim a credit on line 30450 instead of 30400. However an error still remains:  UFile’s Schedule 5 will still incorrectly report the dependant as having the parent’s address. There seems no way to fix this error.

Illustrations:

a)        A couple with two young children. Mother’s net income is $50,000 and father’s net income is $5,000.  Father will claim the spouse amount on Line 30300.

b)        A mother with two young children. Mother’s net income is $50,000.  Mother will claim dependant amount for one child on Line 30400.

c)        A mother with an infirm child. Mother’s net income is $50,000. Mother will claim the dependant amount on Line 30400, and a caregiver amount on Line 30500.

d)        A couple with two young children, one of them infirm.  Mother’s net income is $50,000 and father’s income is $5,000.  Father will claim a spouse amount on Line 30300, and a caregiver amount on Line 30500.

e)        A couple with no children. Spouse A’s net income is $50,000. Spouse B’s net income is $10,000 and they are infirm. Spouse A will claim an enhanced spouse amount on Line 30300, and a caregiver amount on Line 30425.

f)        A daughter supports a partially dependant parent who is not infirm. The daughter cannot claim the dependant or caregiver amount.

g)        A single daughter supports a wholly dependant parent who is not infirm.  The caregiver amount can be claimed on Line 30400.

f)        A couple supports a partially dependant infirm elderly parent of one of the spouses. Spouse A has $50,000 net income and Spouse B has $5,000 net income. The parent has OAS income of $10,000 and GIS income of $8,000 for a total net income of $18,000. Spouse A will claim a spouse amount on Line 30300 and a caregiver amount on Line 30450.

g)        A son, who is single, supports her elderly partially dependent infirm parents who live in their own apartment rented by the son.  The son has a net income of $50,000.  The parents immigrated to Canada as seniors and have little income and neither claims the spousal amount.  The caregiver amount can be claimed for both parents on Line 30450.

h)        A son’s parent is living alone in a seniors residence. The parent has a low income and needs the son’s financial assistance to cover basic necessities. The parent is not infirm.  The son cannot claim a dependant or caregiver amount.

References:

• CRA website - Canada caregiver credits
• CRA website - Line 30300 - spousal amount
• CRA website - Line 30400 - dependant amount
• CRA website - Line 30425 - caregiver amount supplement
• CRA website Line 30450 - adult caregiver amount 
• CRA website Line 30500 - child caregiver amount
• Schedule 5
• Tax Folio S1-F4-C2, Basic Personal and Dependant Tax Credits (for 2017 and subsequent tax years)
• Income Tax Folio S1-F1-C2 - Disability Tax Credit (for meaning of dependancy)
• Income Tax Act, s.118(1).  

• The spousal amount: s.118(1)B(a). (Line 30300)
• The dependant amount: s.118(1)B(b). (Line 30400)
• The adult caregiver amount: s.118(1)B(d). (Line 30450)
• The child caregiver amount: s.118(1)B(b.1). (Line 30500)

• Income Tax Act, s.118(6) for definition of dependant.
• For the meaning of “infirmity”, see Mahoney v. R. (2002) Tax Court of Canada
• For the meaning of “dependent for support” (but not wholly dependent), see The Queen v. Robichaud (1983), 37 DTC 5265; Calek v. R. (2001) Tax Court of Canada; Borden v. R. (2003) Tax Court of Canada; and Jordan v. R. (2010) Tax Court of Canada. See also severed interpretation letter 2022-0947811I7