You may be eligible for the caregiver credit if you provide in-home care for a relative that resides with you and is your or your spouse's:
Generally, if you claim the caregiver credit for your relative, no individual will be allowed to claim the ‘equivalent-to-spouse' credit or the ‘infirm dependent' credit for the same relative. You can claim the caregiver credit for more than one person. For example, if both parents qualify, you can claim the credit for both of them.
The combined Federal and British Columbia tax credit will reduce your taxes payable by up to $828 (for each relative claimed). However, the tax credit will be reduced where the relative's income for 2007 exceeds $13,726 (for federal tax purposes, $13,368 for B.C. tax purposes). The credit is completely eliminated when the relative's income reaches $17,745 (for federal tax purposes, $17,317 for B.C. tax purposes).
Check to see if you qualify for the Caregiver Credit. Consult with a Chartered Accountant for more information.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.