Help your Newfoundland and Labrador tax-paying clients by claiming a credit for having an infirm dependant over the age of 18. An infirm person is one who has poor vitality and lacks mental or physical ability and strength. As of 2017, eligible clients in the province can claim up to a maximum of $2,851 for each of their, or their spouse’s or common law partner’s, dependant:
- Children or grandchildren
- Parent or grandparent
- Brother or sister
- Aunt or uncle
- Niece or nephew
For your client to be eligible to claim the credit, the person must:
- Be born in 1999 or earlier
- Have an impairment in physical or mental functions
- Be dependent on your client, or on your client and someone else for support
There are two things to keep in mind when determining whether your client qualifies for this credit:
- The impairment does not need to be so severe that the dependant meets the definition of “disabled.”
- If your client shares responsibility for supporting the dependant, each person may claim a portion of the credit, but the total amount claimed can’t exceed the maximum credit.
This is a nonrefundable credit. It gets deducted from your client’s net income and reduces their tax burden. If the credit results in a zero amount due, they can’t use it to generate a refund. You may want to advise your client to have or obtain documentation from the dependant’s physician in case the Canada Revenue Agency wants to confirm the impairment and verify the credit is appropriate. You can claim this credit for your clients by completing Line 5820 of Form NL 428, Newfoundland and Labrador Tax and Credits.