Schedule 5 – Amounts for Spouse or Common-Law Partner and Dependants

If you have a spouse or common-law partner, or a dependant with an impairment in physical or mental functions, you may be entitled to claim the Canada caregiver amount.

For your spouse or common-law partner, you may be entitled to claim an amount of $2,350 in the calculation of line 30300. You could also claim an amount up to a maximum of $7,525 on line 30425.

For an eligible dependant 18 or older, you may be entitled to claim an amount of $2,350 in the calculation of line 30400. You could also claim an amount up to a maximum of $7,525 on line 30425.

For an eligible dependant under 18 years of age at the end of the year, you may be entitled to claim an amount of $2,350 on line 30500 or in the calculation of line 30400.

For each of your or your spouse’s or common-law partner’s children under 18 years of age at the end of the year, you may be entitled to claim an amount of $2,350 on line 30500.

For each other dependant 18 or older, who is not your spouse or common-law partner or an eligible dependant for whom an amount is claimed on line 30400, you may be entitled to claim an amount up to a maximum of $7,525 on line 30450.

The CRA may ask for a signed statement from a medical practitioner showing when the impairment began and what the duration of the impairment is expected to be. For children under 18 years of age, the statement should also show that the child, because of the impairment in physical or mental functions, is, and will likely continue to be, dependent on others for an indefinite duration. This dependence means they need much more assistance for their personal needs and care compared to children of the same age. You do not need a signed statement from a medical practitioner if the CRA already has an approved Form T2201, Disability Tax Credit Certificate, for a specified period.

Starting in 2020, the base amount used to calculate the spouse or common-law partner amount is the taxpayer’s basic personal amount (line 30000 of their return).

The amount for spouse or common-law partner can be claimed if the taxpayer supported the spouse.

If the spouse is entitled to the disability amount and the check box allowing you to indicate that the spouse is eligible for this amount is selected in Form Identification and Other Information (Jump Code: ID), the Canada caregiver amount will be claimed in computing the amount for spouse or common-law partner.

If the spouse is not entitled to the disability amount, but gives entitlement to the Canada caregiver amount, you can claim the Canada caregiver amount by selecting the check box in the “Line 30300 – Amount for spouse or common-law partner” section of Schedule 5. For a spouse 18 years of age or older, you must obtain a signed statement from a medical practitioner showing when the impairment began and what the duration of the impairment is expected to be. For a spouse under 18 years of age, the statement should also show that the spouse, because of an impairment in physical or mental functions, is dependent on the taxpayer, for a prolonged and indefinite duration, for their personal needs when compared with persons of the same age who do not have an impairment.

When none of the spouses qualifies for the Canada caregiver amount, the program compares the net income of both spouses and claims the amount for spouse or common-law partner in the return of the spouse with the higher net income, if applicable.

When one of the spouses (or both) qualifies for the Canada caregiver amount, the total of the amount for spouse or common-law partner (line 30300) and the Canada caregiver amount for spouse or common-law partner (line 30425) might be greater in the return of the spouse with the lower net income. These two amounts are then claimed in the return of that spouse and you will be advised by a diagnostic.

However, because the allocation results from the calculations performed at the federal level only, it could give rise to a disadvantage at the provincial level, for example, in provinces where the spouse or common-law partner amount is greater that the federal amount (Alberta, Northwest Territories, Nunavut and Saskatchewan). The box You are claiming the spouse or common-law partner amount can then be overridden to modify the choice made by the program.

In the following situations, box 55220 is selected and the date of change in marital status field displays:

• The taxpayer was married or common-law during the year, but their marital status was “widowed” on December 31, their spouse died after June 30 of the year, and the value in field 38101 of Form EFILE SUM is “1.”
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 32600 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 58640 in Form EFILE SUM for the appropriate province.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 60900 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 61880 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 61580 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 61970 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, and an amount is claimed in field 62140 of Form EFILE SUM.
• The taxpayer was married or common-law at any time during the year, but their marital status was other than “married” or “common-law” on December 31, an amount is claimed in field 58980 or 62150 of Form EFILE SUM, and only the spouse (not the taxpayer) is reporting farming income.

If you are eligible for the Canada caregiver amount for your spouse or common-law partner, or an eligible dependant 18 or older, and their net income is between $7,544 and $25,195, you may be able to claim an amount up to a maximum of $7,525. However, you must first claim the amount of $2,350 in calculating the spouse or common-law partner amount on line 30300; or the amount on line 30400 for an eligible dependant 18 years of age or older.

Only one claim can be made for this amount. You cannot split this amount with another person.

Starting in 2020, the base amount used to calculate the amount for an eligible dependant is the taxpayer’s basic personal amount (line 30000 of their return).

An amount for an eligible dependant can be claimed instead of the spouse or common-law partner amount if the taxpayer meets certain requirements.

Make the claim in Form Family Profile (Jump Code: FAM)by checking the appropriate box. Make sure you enter all relevant information with respect to the dependant, especially the following:

• date of birth.
• social insurance number.
• net income.

If the eligible dependant is not living at the same address as the taxpayer, the calculation of the amount for a dependant is performed assuming that the dependant has lived with the taxpayer at a particular moment in the year. To cancel this calculation, clear the Amount for an eligible dependant check box in the Family Profile.

If there is a marriage or a death in the year and the taxpayer and/or the spouse have a dependant, the program determines the most advantageous amount to claim between the spouse or common-law partner amount and the amount for dependant. The credits will be claimed for the spouse or common-law partner if the total of the amount for spouse or common-law partner (line 30300) and the Canadian caregiver amount that can be claimed for the spouse (line 30425) is greater than the total of the amount for eligible dependant (line 30400) and the Canadian caregiver amount that can be claimed for the dependant (line 30425). Otherwise, the credits are claimed for the dependant.

Taxprep calculates the Canada caregiver amount if one of the two following boxes is selected in Form Family Profile (Jump Code: FAM):

1) Eligible for disability amount

2) This dependant has a mental or physical impairment, but is not eligible for the disability amount

In the following situations, box 55290 is selected and the date of change in marital status field displays:

• The taxpayer was married or common-law during the year, has separated, then reconciled in the year, no amount is claimed on line 30300, but an amount is claimed on line 30400.
• The taxpayer was married or common-law during the year and the taxpayer, but, at any time during the year, the taxpayer was not living with, supporting, or being supported by the spouse, and an amount is claimed on line 30400.

You can claim an amount up to a maximum of $7,525 for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person was dependent on you because of an impairment in physical or mental functions and was 18 years of age or older.

You can also claim an amount for more than one person if each one meets all the following conditions. The person must have been:

• your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• 18 years of age or older;
• dependent on you because of an impairment in physical or mental functions; and
• a resident of Canada at any time in the year.

You cannot claim this amount for a person who was only visiting you.

You cannot claim an amount on line 30450 for dependants who do not have an impairment in physical or mental functions, including a parent or grandparent who was 65 years of age or older.

A parent includes someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age.

A child can include someone older than you who has become completely dependent on you for support and over whom you have custody and control.

If anyone (including you) is claiming an amount on line 30400 for the dependant, you cannot claim an amount on line 30450 for this dependant.

You can claim an amount only if the dependant’s net income (line 23600 of their return, or the amount it would be if he or she filed a return) is less than $25,195.

The program performs an optimization with respect to the following tax credits for dependants when the taxpayer and the spouse’s returns are prepared together:

• Canada caregiver amount for other infirm dependants age 18 or older (line 30450)
• Disability amount transferred from a dependant (line 31800)

First, the program adds the amounts available in respect of these credits for dependants for the taxpayer and the spouse (i.e., the total of the credits for which they qualify) and calculates the amount required to cancel the tax payable by the taxpayer and the spouse.

Then, based on the required amounts, the program determines if the tax payable should be eliminated first in the taxpayer’s return or in the spouse’s return. If the amount required to eliminate the tax payable is higher for the taxpayer than for the spouse, the optimization will seek to eliminate the tax payable in the taxpayer’s return and, if the total of the credits for dependants is not entirely used in the taxpayer’s return, the unused portion will be claimed in the spouse’s return.