The Canadian Caregiver Credit (CCC) is a non-refundable tax credit available to those caring for a dependent family member with a physical or mental impairment.
While a non-refundable tax credit can reduce one’s tax liability to zero, any amount that remains from the credit is automatically forfeited by the taxpayer. Unfortunately, this means that the CCC effectively treats high-income earners more favourably than those of modest means.
Recommendation
The Government of Canada should make the CCC a refundable tax credit, ensuring that all Canadians caring for relatives with a physical or mental impairment are treated equally.