There are some amendments made by the Canada Revenue Agency relating to the income taxes of those with disabilities along with their families. This site will provide all the information pertaining to tax tips for the year 2015-2016. Accordingly, the changes are updated at Https://www.atia.org/. The article will provide an insight on how the changes are processed and how it affects those with disabilities.
The Family Caregiver sum for children below 18 years has to be claimed by separately on the return page of line 367. For those dependents above the age of 18 years, a value of $2093 has to be mentioned in the line 303 in case the dependent is your spouse or a legal partner. Suppose the dependent is a qualified dependent then a mentioned is needed on line 305. If the caregiver amount is to be claimed, mention on line 315.
The Children’s Fitness Tax Credit limit is not refundable, but since 2015 it has been changed into being a refundable credit. The Canada Revenue Agency has made an announcement that from 2015 the returns will assist all the taxpayers and this includes those with disabilities. Parts of the income tax returns will be automatically filled with information from the CRA file. This move is to enable taxpayers to return from RRSP information, Capital gains and losses, Home Buyer’s plans, T3. T4 and T5 slips. Detailed information is provided at http://www.cra-arc.gc.ca/auto-fill/.
People receiving RDSP grants and bonds are required to file returns, and this is called Age 17 Tax Returns. One the person turns 19, the income will be switched from the income of the parents to the disability’s income. The amount used in the calculation is the one reported two years prior to the present year to the CRA. Income tax returns have to submit for the year when the person is 17 and every year thereafter. Meanwhile, the Universal Child Care Benefit has been increased to $160 per month for the dependents between the age of 6 and 17 and those who are qualified.
Disability Tax Credit or disability amount is available to the disabled and their family members. The amount is a non-refundable tax credit and can decrease the tax amount of the disabled person or their supporting member. Whole or part is transferred to the member who provides food, clothing, shelter and other basic necessities. Even if the disabled person is not living with you, the DTC claim can be made, if the person is depending on you for consistent support. The claimant needs to provide supporting documents to prove their claim.
A disabled person above the age of 18 is eligible for $7,899 disability amount. If the person is less than 18 years, then a disability tax credit supplement of $4,607 is given in excess to the disability amount. Either of the amounts is transferable. A reduction in the supplement happens if they claim Attendant Care or Child Care Expenses.
The good news for special needs community is that caregivers and people with disabilities can claim DTC from 2015 for the past 10 years if the credit has not been claimed. The caregivers can claim from 2005 but only if the dependent is above the age of 18 since the year the claim is made.