Canada Revenue Agency Information Session Q & A

Thank you for attending “Canada Revenue Agency Information Session” on October 4th. Below are the questions and answers from the session.

Q1 – Relating to the DTC: “So my mother, living with dementia, can claim the individual amount?”
A – Yes – if she has an approved DTC on file she would claim the DTC amount for self.

 

Q2 – Relating to the DTC: “I am her full-time live-in care partner, so can I also claim”?
A – Yes – when submitting the T2201 for approval there is a section on page 1 that you would fill out indicating that a supporting family member will be claiming the DTC.

Follow up later in the chat from same person – “My mother lives with dementia (so she has disability).  I live with her and care for her full time AND I also have a disability.  But I have a complicated situation, which includes me living in Canada to support my mother while married to an American”.

If you both have a valid DTC on file (so mom has hers, and caregiver family member ALSO has their own DTC) they could claim both. The same info as above applies regarding supporting family member (filling out the section on page 1 of mom’s DTC application), but the amounts would be claimed at different lines on the return. DTC for self would be claimed at line 31600 federally, where the DTC for dependent (so transferred from mom) would be at 31800. I don’t believe the current marital situation w/ an American would create issues.

 

Q3 – What is required to claim the DTC? What kind of documentation?
A – Form T2201 – Disability Tax Credit Certificate is the form you’ll use to apply for the DTC. The bulk of this form will need to be completed by a doctor / medical practitioner and they will expand on how the impairment is causing a “marked restriction” in everyday life.

 

Q4 – For the DTC, does that supporting person have to be living in the same residence as the person with the disability? EG – spouse is in PCH due to disability.
A – No – you’re not required to live at the same address but the supporting person would be a family member who the person with the impairment depends on for at least 1 of the basic necessities of life (food, shelter, clothing). So if a spouse is in PCH and the other partner is paying the bill, you are good to go!

 

Q5 – Relating to the DTC: “Mental functions, ie severe anxiety, that keeps you from being able to work on a regular basis considered in this?
A – Mental health concerns, anxiety, etc absolutely could be considered for the DTC. Remember it’s not the diagnoses but the effects of that diagnosis! There’s no way to know until you have those conversations with your doctor and submit the application. This link from Canada.ca talks specifically about the mental functions category and is a great starting point if you’re looking to apply.

 

Q6 – Do you need to resubmit this form as the disability increases?
A – You would only be required to resubmit the T2201 if and when a current DTC expires. If you had previously applied and were denied, but things have now progressed its worth re-applying.

 

Q7 – Can we claim Depends (incontinent products) as part of the medical supplies?
A – Yes! Be sure to keep those receipts (I recommend taking a photo w/your smart phone as well just in case). This link on Canada.ca will take you to a handy search for common eligible medical expenses.

 

Q8 – Is there a maximum amount you can claim for medical expenses in Manitoba?
A – Not as far as I’ve seen, no. However since this credit is a non-refundable credit, you can only use what will reduce your tax payable to $0.

 

Q9 – I thought we could just claim the medical portion of care in PCH?
A – When you’re claiming nursing home / PCH fees as a medical expense you can generally claim the entire amount. All regular fees paid for full-time care in a nursing home are eligible as medical expenses, including fees for food, accommodation, nursing care, administration fees, maintenance fees, social programming fees, etc. However personal expenses (such as for a hairdresser) are not eligible.

 

Q10 – Is there a minimum number of kilometers that must be travelled to use the travel deduction?
A – There are two “tiers” of medical travel:

  • Travelling 40 – 79km (one way) from home to receive medical care/treatment: may be able to claim transportation or vehicle expenses.
  • Travelling over 80km (one way) from home to receive medical care/treatment: may be able to claim accommodation, meals, and parking expenses in addition to the transportation expenses.

This link is for meal and vehicle travel expense rates for the 2022 tax year.

 

Q11 – Can claim for elderly parent still living on their own but not disabled?
A – This may depend on which claim we’re talking about, but for a parent over 65yrs you could potentially claim Medical expenses (line 33199).

Regarding the Canada Caregiver credit your dependent (including parent or grandparent) would have to have some impairment in either physical or mental functions. More information can be found here: Line 30450 – Canada caregiver amount for other infirm defendants age 18 or older.

 

Q12 – Do you have to be 18 to access the RDSP?
A – No. The only wage restrictions are regarding cut offs for the grant and bonds (age 49) and the cut off for the program (age 59). If the RDSP is for someone under 18 years old it will be “held” by their parent/guardian until they are 18 and can sign their own contract.

 

Q13 – How does one notify CRA they have power of attorney for their parents?
A – When you have legal POA, send a copy of the forms to:

Authorization Services Unit
Winnipeg Tax Centre
Box 14001, Stn Main
Winnipeg, MB  R3C 3M3

 

Q14 – My mom has vascular dementia and can’t recall her My Account sign in information.  I currently have hold her power of attorney.  How do I get access to her tax information?
A – First, you need to make sure that the POA information is on file – see answer to Q13 above. Once that is on file with CRA you would be able to call General Enquiries as a legal representative for your mom and be able to ask for current and previous year tax info, copies of slips, etc. The agent may also be able to guide on how to set up online access as a rep through My Account and Represent a Client.

 

Q15 – Can a spouse who has to travel to visit their spouse in PCH claim travel?
A – Unfortunately no, this would not be considered medical travel and would not be eligible to claim as a credit.

 

Q16 – Can you speak about involuntary separation?  I have heard it can lower the cost of care home fees? When is this beneficial to use? Are there guidelines for how long we need to live apart to access this support or age considerations?
A – By definition, “involuntary separation” is when one spouse or common-law partner is living away for work, school, or health reasons. In Manitoba, if both partners/spouses occupy separate residences for part or all the year, both can claim separate personal tax credits (Form MB479).

 

Q17 – What if you have a new doctor, for like 8 months.  Does he qualify as the medical person who can fill out the DTC?
A – They absolutely can – ideally your records have been transferred to this new office so they would have all that previous information but regardless that DR can complete the forms for DTC.