Caregiving in Canada: A Critical Conversation

Evelyn Jacks

Are you or someone in your circle of influence an unpaid caregiver? You are not alone. According to the Canadian Centre for Caregiving Excellence you are in fact one of 8 million people who are family caregivers and what you all have in common is you do this important work because of a relationship you have with a vulnerable person. But this comes at a cost – financial and personal. Highlights of a May 2026 survey underscore what you may already know: there is a caregiving crisis in Canada and the existing supports are inadequate. The tax system can help in many ways, however, as we share below. 

Gratitude.  Knowledge Bureau is grateful to Edward Jones for their presentation on the Caregiving Conversation at the Acuity Conference for Distinguished Advisors in Victoria on November 24 with panelists Erin Roy, Jack Groucott and Liz da Mata.  There is still time to join us for this preeminent educational event later this month. 

The Backdrop. The Caring in Canada Survey asked 2600 caregivers (unpaid and looking after a disabled person) and care providers (trained and paid to do this work).  Key highlights in the report:

• 77% of caregivers have experienced negative impacts of caregiving on their wellbeing
• 73% of care providers have considered leaving their profession
• 61% of caregivers do not feel supported by government
• 51% of caregivers are unfamiliar with tax credits related to care
• 49% of caregivers experience financial strain due to caregiving

The Potential Solutions.  The Centre made some important suggestions:

• Make the Canada Caregiver Credit refundable
• Give caregivers a monthly allowance for costs incurred related to caregiving
• Improve EI caregiving benefits
• Change CPP to account for gaps in caregiving similar to child rearing
• Improve the Disability Tax Credit and Canada Disability Benefit

How the Tax System can Help.  Tax and financial professionals can assist immediately at year end by proactively sharing tax assistance opportunities with caregiver, care providers and the incapacitated tax filer.   Professionals can help by putting these complex provisions into action for their clients.  Examples include:

• Disability Tax Credit (DTC):    This is a reasonably well known and critically important non-refundable tax credit for individuals with a severe and prolonged physical or mental impairment. It requires submission of Form T2201 (Disability Tax Credit Certificate) certified by a medical practitioner. Unused portions of this credit can be transferred to a supporting family member. Claim it on the following lines on the T1 return:
  • For the disabled person - Line 31600
  • For amounts transferred from a dependant -  Line 31800.
  • For amounts transferred from a spouse or common-law partner- Line 32600.
• Disability Supports Deduction (Line 21500): Allows individuals with a disability who paid for specific expenses (such as attendant care, sign language interpretation, or specialized work/school devices) to deduct these costs so they can work, go to school, or conduct research. These costs cannot also be claimed as  medical expenses if claimed here.
• Home Buyers’ Amount (Line 31270): Allows $10,000 for purchasing a qualifying home if the taxpayer, or a relative with a disability with a DTC acquired a more accessible home. If this is the case, “first time homebuyer” waiting period rules can be bypassed for the purposes of using the RRSP Homebuyer Plan.
• Home Accessibility Tax Credit (Line 31285): For eligible home renovation expenses (up to $20,000 per year) to improve safety and mobility for a person who is eligible for the DTC or who is age 65 or older.
• Medical Expense Tax Credit: this is a non-refundable credit claimed on lines 33099 and 33199 for out-of-pocket medical cost, such as prescriptions, special equipment, and transportation costs, exceeding a certain threshold of net income.  It also includes costs for full time attendant, however claiming these expenses can affect the disability tax credit. Claim full amounts paid at
  • nursing homes
  • schools, institutions, or other places – for care and training
  • costs for out-patient clinics, including a detoxification clinic
  • Not allowed: a recreational facility, residential summer camps
• Registered Disability Savings Plan (RDSP): A long-term savings plan for individuals who are eligible for the DTC, featuring government-backed grants and bonds (such as the Canada Disability Savings Grant and Bond) to help build financial security.

• Canada Caregiver Credit (CCC): A non-refundable tax credit to assist individuals who provide unpaid care to a spouse, common-law partner, or a dependent with a physical or mental impairment. It applies differently depending on whether you are supporting:
  • A spouse or common-law partner (Line 30425)
  • An eligible dependant age 18 or older (Line 30425)
  • Other infirm dependants age 18 or older (Line 30450)
  • Infirm children under 18 years of age (Line 30500)

• The Refundable Multi-generational Home Renovation Tax Credit. This helps with costs of building a self-contained unit for seniors or adults with disabilities so they can live with a qualifying family member providing oversight and care.
• Child Disability Benefit: This is a monthly, tax-free payment made to families who receive the Canada Child Benefit (CCB) and are caring for a child under 18 who is eligible for the DTC.
• Child Care Expenses: regardless of age, a claim of up to $11,000 can be made for a disabled child.

There are numerous other provisions to consider as well.