Taxing nurture

Hey there, time traveller!
This article was published 14/03/2026 (198 days ago), so information in it may no longer be current.

The federal and provincial governments are recognizing the service of unpaid caregivers. For all the hours, days and nights of assistance (particularly involving aging family members), a host of tax credits potentially await when filing a return this spring.

“The purpose of these is really a realization that people providing this (unpaid work) have costs others don’t,” says Ryan Minor, Sudbury, Ont.-based tax director for CPA (Chartered Professional Accountants) Canada.

Many could use the tax break.

Statistics Canada points to about one in four individuals ages 15 and older providing care for family members or friends with long-term health conditions.

A Canadian Medical Association study further notes a stressed health-care system is unable to keep up with an aging population, and that’s resulting in roughly eight million Canadians providing as much as $31 billion in unpaid care work annually.

The report, published more than five years ago, further forecast the cost and number of families affected will double within the decade.

In short, the burden of care is likely more substantial today.

Anyone caring for ailing family members probably knows the impacts well. What they may not know is the host of credits potentially available for caregivers, says Aurèle Courcelles, vice-president of tax and estate planning at IG Wealth Management in Winnipeg.

“The challenge is it’s a very complicated system,” he adds.

To offer some clarity, here is a look at some of the key credits for caregivers living in Manitoba:

Canada Caregiver Credit

This is a non-refundable federal credit available to Canadians providing care to a dependent with a physical or mental impairment.

“For an individual to be considered dependent on you for this credit, they regularly must rely on you for basic necessities,” Courcelles says.

Notably, the individual does not have to live with you, but you must be able to prove you are providing care for needed activities they cannot do for themselves.

“The amount can be split with another supporting individual, but together you can’t exceed the maximum of $8,601” for an adult, says Evelyn Jacks, Winnipeg-based president of the Knowledge Bureau, and author of dozens of books on tax advice.

The amount is $2,687 for dependents under age 18.

Only 14.5 per cent of that sum results in actual tax savings and, as a non-refundable credit, you only receive a refund for taxes paid or owing. If the credit value exceeds that sum, the remaining credit is lost, unless the remainder is claimed by another caregiver.

Ideally, the individual receiving care should have the Disability Tax Credit (DTC).

This is the gateway credit for many other tax breaks for individuals with disabilities and their caregivers. In absence of the DTC, Canada Revenue Agency (CRA) may ask for a doctor’s note to support the caregiver credit claim, Jacks says.

As well, income of the dependent will reduce the credit value, for every dollar of dependent net income above $20,197, and is eliminated entirely when net income exceeds $28,798.

Disability Tax Credit

The DTC is always worth pursuing for an individual receiving care for the long term. It involves a physician filling out a long form, often for a fee (tax deductible). CRA approval automatically leads to approval for the accompanying provincial credit.

All told, the DTC can result in more than $2,000 in tax savings per adult in Manitoba annually.

“As people get older, if they can’t hear well and have lost their mobility, for example, that might be enough to qualify,” Jacks says.

As mentioned, if a loved one is getting the DTC, this makes qualifying for the Canada Caregiver Credit all the more likely.

The DTC is also a non-refundable credit. Unused portions — or even the full amount if the dependent has very low income and is unable to use any of it — can be transferred to caregivers, and it can be combined with the caregiver credit, the CRA says.

Manitoba Primary Caregiver Tax Credit

This is a refundable credit offering $1,400 in tax savings for a caregiving individual. As a refundable credit, you do not need commensurate taxes owing/paid to receive the full credit.

“The care recipient must be assessed at a Level 2 or higher under the Manitoba Home Care Program (for at least 90 days),” Courcelle cites as the criteria to receive it.

If aging parents are living independently, for example, and a home care aide provides daily medication for them, and you’re helping them continue to live in their home — i.e. cleaning their house, doing laundry and taking them to medical appointments — you likely will qualify for this credit.

Other potential credits

Caregivers may be able to access other tax credits based on certain circumstances. That includes the Multigenerational Home Renovation Tax Credit.

You can claim up to $50,000 in costs to create a separate suite in your home for a family member, who has the DTC, or is age 65 or older. “It’s quite generous and refundable,” says Minor, noting it is worth $7,250 for a claimant.

As well, the non-refundable Home Accessibility Tax Credit can be claimed if you make modifications to your home for it to be accessible for someone with an impairment.

If you pay for accessibility modifications to your aging parents’ home, you can potentially claim those costs under the credit on your return.

Similarly, you can claim a loved one’s medical expenses — like medications — if you pay for those, too. “That (amount) is based on their net income, not yours,” Jacks says.

This is notable because medical expenses are reduced by three per cent of net income, and it is likely their income is lower.

Also, 2025 is the last year you can claim expenses for the accessibility credit and as a medical cost.

Navigating caregiving credits can feel like finding your way through a bureaucratic labyrinth.

“Proper planning often involves customization to your specific situation, and that can be very confusing because many credits are interrelated,” Jacks says.

Consequently, if unsure, seek professional help.

Joel Schlesinger is a Winnipeg-based freelance journalist

joelschles@gmail.com