The government of Canada has made some comprehensive options for income tax breaks for families of people with a disability to benefit from tax credits and medical relief especially where the dependant is a child.
The Medical Expenses Tax Credit is one such incentive given to families taking care of people with some form or another of physical or mental disability. The provisions made under METC apply for a range of expenses including homecare to orthopaedics so long as they are not covered under your current respite care cover. Moreover, it is interesting to note that the provisions are pretty open allowing anyone who had to meet medical expenses in excess of 3% of their annual earnings to make claims for tax relief. In addition, the law as it is now doesn't limit the amount of claims that can be made. The provision that capped the amount of claims that can be made with regards to a child or relative with a disability was removed in the 2011 national budget. By now, it is possible to make claims that were excluded by this provision so long as the payments were made at some point in 2011 and went back over a period of twelve months to 2010 but had not been claimed in that year. The provisions as they are now also make it possible to make claims so long as one had to travel for 40 kilometers or more in order to access medical or dental services. Compensation in such circumstances are made at the rate of 48.5 cents per kilometer covered. In addition to this, one can ask for compensation for any parking charges they had to pay as well as meals. More comprehensive information to the entire list of compensation claims that can be made can be accessed at the Canada Revenue Authority website at www.cra.gc.ca/Guide RC4064.
Families with low and moderate income who have a child with a disability under age 18 may be eligible for the Child Disability Benefit and they may also receive the Canada Child Benefit and the National child benefit supplement. The Registered Disability Income Program (RDSP) which is similar to the Registered Education Savings Plan is a plan that allows parents of a child with a disability to save for their child's future. For more information on the RDSP visit www.hrsdc.gc.ca/disability_issues
Eligibility for those who can make compensation claims under the program is pretty open. In fact, if you can prove that your child was a resident in Canada at some point or other in the year preceding the present one, then you can claim for the Disability Tax Credit if such a child depended on you for such necessities as food, shelter or clothing. The definition of a dependant in the program is wide enough to include children, grandparents, spouses, siblings, aunts, uncles, cousins, nephews and nieces even where you do not live with them in the same home. It is possible to split the tax credit with another person but this information should be made clear right at the application stage. More information about the program can be obtained by going to www.gc.ca and searching for 'Guide RC 4064'.
It is as well possible to file for the Caregiver credit if you were living with a child or other relative with a disability and aged above 18 years of over the past year. However, this provision specifically exempts anyone who is required by law to provide support payments for a child. On the other hand, you can as well lay claim for this form of compensation if you are separated from your spouse but only if you do not as well lay claim to any support given to your spouse or partner under common law.
With the information given here, you are now in a position to take advantage of all income tax breaks for families of people with a disability. Make your choices well and apply in time.
[Extracted from: General income tax and benefit guide 2011]
The Medical Expenses Tax Credit is one such incentive given to families taking care of people with some form or another of physical or mental disability. The provisions made under METC apply for a range of expenses including homecare to orthopaedics so long as they are not covered under your current respite care cover. Moreover, it is interesting to note that the provisions are pretty open allowing anyone who had to meet medical expenses in excess of 3% of their annual earnings to make claims for tax relief. In addition, the law as it is now doesn't limit the amount of claims that can be made. The provision that capped the amount of claims that can be made with regards to a child or relative with a disability was removed in the 2011 national budget. By now, it is possible to make claims that were excluded by this provision so long as the payments were made at some point in 2011 and went back over a period of twelve months to 2010 but had not been claimed in that year. The provisions as they are now also make it possible to make claims so long as one had to travel for 40 kilometers or more in order to access medical or dental services. Compensation in such circumstances are made at the rate of 48.5 cents per kilometer covered. In addition to this, one can ask for compensation for any parking charges they had to pay as well as meals. More comprehensive information to the entire list of compensation claims that can be made can be accessed at the Canada Revenue Authority website at www.cra.gc.ca/Guide RC4064.
Families with low and moderate income who have a child with a disability under age 18 may be eligible for the Child Disability Benefit and they may also receive the Canada Child Benefit and the National child benefit supplement. The Registered Disability Income Program (RDSP) which is similar to the Registered Education Savings Plan is a plan that allows parents of a child with a disability to save for their child's future. For more information on the RDSP visit www.hrsdc.gc.ca/disability_issues
Eligibility for those who can make compensation claims under the program is pretty open. In fact, if you can prove that your child was a resident in Canada at some point or other in the year preceding the present one, then you can claim for the Disability Tax Credit if such a child depended on you for such necessities as food, shelter or clothing. The definition of a dependant in the program is wide enough to include children, grandparents, spouses, siblings, aunts, uncles, cousins, nephews and nieces even where you do not live with them in the same home. It is possible to split the tax credit with another person but this information should be made clear right at the application stage. More information about the program can be obtained by going to www.gc.ca and searching for 'Guide RC 4064'.
It is as well possible to file for the Caregiver credit if you were living with a child or other relative with a disability and aged above 18 years of over the past year. However, this provision specifically exempts anyone who is required by law to provide support payments for a child. On the other hand, you can as well lay claim for this form of compensation if you are separated from your spouse but only if you do not as well lay claim to any support given to your spouse or partner under common law.
With the information given here, you are now in a position to take advantage of all income tax breaks for families of people with a disability. Make your choices well and apply in time.
[Extracted from: General income tax and benefit guide 2011]
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Learn more about getting a registered disability savings plan (RDSP). Stop by John Dowson's site where you can find out about guaranteed life insurance for people with a disability.
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