What’s in this article?
You may have a dependant (other than your spouse or common-law partner) who is eligible to claim the disability amount (line 316). Your dependant may not need to claim all or part of the disability amount and, under certain conditions, may be able to transfer any unused amount to you. The disability amount is a non-refundable tax credit that can be used to reduce your income tax payable.
Your dependant must be eligible for the disability tax credit and have an approved T2201: Disability Tax Credit Certificate on file with the Canada Revenue Agency (CRA). If you are claiming the disability amount from your dependant, you must be named on the T2201 form as the person claiming the disability amount. If you are not attaching the T2201 form with your return, you must attach a note with the dependant’s name, social insurance number (SIN), and relationship to you.
Note: If you want to claim your dependant’s disability amount and your dependant does not have an approved T2201 on file with the CRA, you cannot electronically file your return. Instead, you must file a paper return and attach a completed T2201.
You may be able to claim your dependant’s disability amount if he or she was resident in Canada at any time in the year and was dependant on you for basic necessities of life such as food, shelter, or clothing. In addition one of the following conditions must apply:
- You claimed an Amount for an eligible dependant (line 305) for that dependant or could have if you did not have a spouse or common-law partner and if your dependant did not have any income;
- The dependant was your or your spouse’s or common-law partner’s parent, grandparent, child, grandchild, sibling, uncle, aunt, niece, or nephew and you claimed an Amount for an infirm dependant age 18 or older (line 306) or a Caregiver amount (line 315), or you could have if your dependant did not have any income and was over the age of 18.
There are certain situations in which you cannot claim the disability amount from your dependant.
Canada Revenue Agency (CRA) says…
You cannot claim the unused part of this amount if the spouse or common-law partner of the person with a disability is already claiming the disability amount or any other non-refundable tax credit (other than medical expenses) for the person with the disability.
If you have to pay child support, you cannot claim the disability amount transferred from that child. However, if you were separated from your spouse or common-law partner for only part of the year because of a breakdown in your relationship, you can still claim an amount for that child on line 318 (plus any allowable amounts on lines 305, 306, and 315) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220.
If there is another person supporting the dependant, you can split the disability amount with that person. The total amount claimed cannot be more than the maximum amount allowed for the dependant.
If your dependant is under the age of 18, you may be able to also claim a supplement amount. Click this link for more information.
Note: Make sure that you have told us about the dependant(s), from whom you will be transferring the disability amount. To do this:
1. Click the HOME tab.
2. Click the ABOUT YOUR DEPENDANTS icon. Enter all the required information about your dependants.
Note: If you want to enter more than one dependant, click the +Add Another Dependant button on your screen.
Once you have told us about your dependants, follow these steps to transfer the disability amount:
1. Click the name of your dependant on the left-hand navigation panel. You will find yourself here:
2. Under the Transfer amounts heading, click the checkbox for Disability amount.
3. Scroll to the bottom of the page and click Continue.
When you arrive at the page for Disability amount, answer the questions to determine whether or not you are eligible to claim your dependant’s disability amount.
Once your eligibility is verified, enter your information into the tax software.
- Line 318 – Disability amount transferred from a dependant (CRA website)
- RC4064 Medical and Disability-Related Information (CRA website)