OTTAWA — New Democrats are calling on the Liberal government to honor its promise to make the caregiver tax credit a refundable tax credit.
NDP MP Bonita Zarrillo, the NDP’s critic for disability inclusion, wrote to Treasury Secretary Chrystia Freeland on Wednesday asking for the change in the next federal budget, which is due on March 28.
Individuals supporting a spouse or dependent with a physical or mental disability are currently eligible to apply for non-refundable Canada Caregiver Credit.
A non-refundable tax credit reduces or even eliminates the amount of tax you pay—but only if there is one. On the other hand, a refundable tax credit, equivalent to a benefit, is an amount that is paid even if the taxpayer has no tax to pay.
In his letter of mandate to Ms. Freeland following the 2021 election, Prime Minister Justin Trudeau had, among other things, instructed her to convert the Canada Caregiver Credit into a repayable and tax-free benefit, “allowing caregivers to receive up to $1,250 per year.”
Earlier this month, the House of Commons Standing Finance Committee included the measure on a list of pre-Budget recommendations to the government.
“Care is the backbone of Canadian society – and its economy,” wrote MP Zarrillo. But we are at a tipping point for caregivers as the health crisis increases pressure on families to care for loved ones.”
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