BC Grandparent Raising Grandchild Tax Credits: What You Can Claim

Tax Credits That Grandparents Miss Every Year

Most BC grandparents who step in to raise a grandchild know about the Canada Child Benefit. Fewer realize they may also qualify for federal and provincial tax credits on their annual return — credits that reduce the tax they owe rather than adding to their income. The difference matters on a fixed pension: a tax-free benefit like CCB adds cash to your bank account, while a tax credit like the eligible dependant amount lowers what you owe CRA (or increases your refund).

Both matter. Here's what's available.

The Eligible Dependant Tax Credit (Line 30400)

This is the biggest tax credit most grandparent caregivers don't claim. If you're single (or separated, divorced, or widowed), support a related dependant under 18 who lives with you in a home you maintain, and meet the other CRA conditions, you may qualify to claim the eligible dependant amount on your federal return.

For the 2025 tax year, the maximum federal claim is $16,129. At the 2025 federal credit rate of 14.5%, that can reduce federal tax by up to about $2,339. BC's provincial equivalent adds further savings.

Who qualifies:

• You must be single, separated, divorced, or widowed; CRA also treats some people with a spouse or common-law partner as separated if they were not living with, supporting, or being supported by that person
• The grandchild must be under 18 and related to you by blood
• The child must live with you in a home you maintain
• You must support the dependant and maintain the home where they live
• You cannot claim this credit if you're already claiming it for another dependant, or if the child's parent is claiming it

Important: only one person per household can claim the eligible dependant amount, and only one person can claim it for a given child. If another person claims the eligible dependant amount for that child, you cannot claim it too. A parent not claiming the amount does not automatically make you eligible; you still need to meet the CRA conditions.

Canada Caregiver Credit (Line 30500)

If the grandchild has a physical or mental infirmity, you may qualify for the Canada Caregiver Credit. For a grandparent, the child must be under your custody and control and completely dependent on you for support. The child must need significantly more help with personal needs and care than other children of the same age, and the dependence must be expected to last for a long, continuous period of indefinite duration. DTC approval is not required if you provide the medical statement CRA requests.

The maximum federal amount for an eligible child under 18 is $2,687 for 2025, worth about $390 at the 14.5% federal credit rate. In most cases, the person claiming the child as an eligible dependant on Line 30400 also claims this amount. It can be claimed only once per child.

Disability Tax Credit (DTC) — If the Child Qualifies

When a grandchild has a severe and prolonged impairment, a medical practitioner can complete Form T2201 to apply for the Disability Tax Credit. DTC approval unlocks:

• The disability amount: $10,138 for 2025, plus a supplement of up to $5,914 for a child under 18; any unused amount may be transferred to a supporting family member
• The Child Disability Benefit: up to $290 per month added to your CCB payment (tax-free) for July 2026–June 2027

Separately, BC's Children and Youth Disability Benefit transition begins in 2026. Its direct funding is based on assessed functional need, with a $6,500 annual base tier and a higher tier of up to $17,000; DTC approval alone does not establish eligibility.

If the child doesn't use the full disability amount on their own return (most children have no income), an unused portion may be transferred to a supporting family member named on the DTC application.

What About CCB and BCFB? Those Aren't Tax Credits

The Canada Child Benefit (up to $8,157/year per child under 6 for July 2026–June 2027) and BC Family Benefit (up to $1,750/year for the first child for July 2026–June 2027) are tax-free payments, not credits on your return. You don't claim them on your tax return. CRA calculates the BC Family Benefit automatically with CCB; apply for CCB through Form RC66 or My Account.

The distinction matters at tax time: don't go looking for a CCB line on your T1. It's a separate monthly payment.

Extended Family Program Maintenance Is Tax-Exempt

If you receive EFP maintenance from MCFD ($1,549.20 per month for a child aged 0–11, or $1,726.33 per month for a youth aged 12 to under 19), those payments are exempt from federal income tax under Section 81(1)(h) of the Income Tax Act. You don't report them as income. They don't appear on a T4 or T5 slip. They don't increase your net income for GIS, OAS, or CCB clawback calculations.

You still need to file a tax return every year — CRA uses your return to calculate CCB and BCFB, even if your taxable income is zero.

How to Maximize Your Credits at Tax Time

1. File your return even if you owe nothing. CRA can't pay CCB or BCFB without a current return on file for both you and your spouse or common-law partner.
2. Claim the eligible dependant amount if you're single and supporting the grandchild and meet the eligibility rules above. This is the most commonly missed credit.
3. Apply for DTC if the child meets the Disability Tax Credit criteria. The Child Disability Benefit can add up to $290/month to CCB payments for July 2026–June 2027.
4. Keep receipts for medical expenses. For 2025, eligible expenses can be claimed on Line 33099 to the extent they exceed 3% of your net income or $2,834, whichever is less.
5. Use a community tax clinic. Free clinics file returns for low-income Canadians and know which kinship credits to claim. Find one at canada.ca/taxes-help.

For the full tax and benefit navigation system for BC kinship caregivers — including a benefits calculator and step-by-step application guides — see the BC Kinship Financial Help Guide.

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