Living with a physical or medical disability can be costly and fortunately, for residents of the province of Nova Scotia, there are services and programs available to ease the monetary burden of being disabled.
Disability tax credits are non-refundable credits for taxpayers who have disabilities, to help them ease the amount of income tax that they will have to pay.
Who is Eligible for Disability Tax Credit?
There are a few conditions that need to be met before being able to qualify for these tax credits. To be eligible, you must:
- Have severe impairment in mental of physical functions.
- Your impairment is prolonged; it has lasted or is expected to last for a period of 12 consecutive months.
- A certified practitioner declares that your impairment meets the above conditions
- Live in the province of Nova Scotia
- Be a permanent resident of Canada
- Have paid taxes in the past, or have a spouse or primary caregiver that has paid taxes
If you qualify, you may be eligible to receive disability tax credits in the form of non-refundable tax credits that reduce federal and provincial income taxes up to the amount of $7,546.
If you are under 18 years of age and qualify for disability tax credits you may be able to claim up to an additional $4,402. This amount, however, can be reduced if someone claims attendant care expenses or child care expenses for you. The amount will also be reduced if you claim attendant care expenses on yourself.
Caregiver Tax Credit
In Nova Scotia if you live in a house or dwelling where you support a dependent with a disability you may be able to claim a maximum amount of $4,402 for each dependent so long as the following stipulations are met:
- The dependent must be your spouse, common-law partner, child, niece, nephew, brother, sister, aunt, uncle, parent, grandparent, or grandchild.
- You and your dependent must live in the province of Nova Scotia.
- You and your dependent must be Canadian Citizens or permanent residents.
- The dependent must be 18 years of age or older.
- The dependent must have a net income of less than $19,435
- The dependent must have an impairment in mental or physical functions
If you support a dependent with another person, then you can split the claim amount for that dependent, although, the total of the two claims cannot be more than the maximum amount permitted for that dependent. Additionally, a dependent can transfer their credit to you if one of the following situations applies:
- You claimed an amount for your dependent or could have done so.
- The dependent must be your spouse, common-law partner, child, niece, nephew, brother, sister, aunt, uncle, parent, grandparent, or grandchild, and you claimed an amount for that dependent.
- The dependent had been 18 years old or older in 2012.
- The dependent has no income.