The Kemp Harvey Group

Canada Revenue Agency (CRA) has proposed a new Family Caregiver Amount for 2012 and subsequent years. This Family Caregiver amount will increase one of the following non-refundable tax credits by and additional $2,000 for each eligible dependant:

• spouse or common-law partner amount
• amount for an eligible dependant – amount for children under age 18 at the end of the year
• amount for infirm dependants age 18 or older – caregiver amount

You can receive this new Family Caregiver amount if you are otherwise eligible for the non-refundable tax credits listed above for a dependant and:

• for individuals age 18 and older, the individual must be dependent on you by reason of mental or physical infirmity or
• for a child under age 18, the child must have a medical or physical infirmity and as a result of that infirmity is, and is likely to be for a long continued period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s needs and care when compared to children of the same age.

CRA will require a signed statement from a medical doctor. This will require information regarding the nature, commencement, and duration of the of the dependant’s impairment.

New for the 2011 taxation year is the Children’s Art Credit, which is similar to the Children’s Fitness Credit. You can claim a maximum of $500 per child for amounts paid for a prescribed program of artistic, cultural, recreational, or developmental activity.

To be eligible the child must have been under 16 at the beginning of 2011. Children with disabilities must be under 18 years old at the beginning of 2011 and are eligible for a maximum claim of $1,000 per child.

To qualify the program must be either a minimum of 8 consecutive weeks long or 5 consecutive days long. It must be supervised and suitable for children.

It must also meet one of these criteria:

•  it contributes to the development of creative skills or expertise in an artistic or cultural activity;
• it provides a substantial focus on wilderness and the natural environment;
• it helps children develop and use particular intellectual skills;
• it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
• it provides enrichment or tutoring in academic subjects.

Please note that programs which are part of a school curriculum are not eligible.

For more information contact your local Kemp Harvey Group office.