Kinship Care Tax Credits in Canada

Tax Season Hits Different for Kinship Caregivers

Filing taxes when you are raising a relative's child means navigating credits and deductions that were designed for parents — but are available to any primary caregiver who meets the criteria. The Canada Revenue Agency does not distinguish between a biological parent and a grandparent or aunt when it comes to most child-related tax benefits. What matters is that you are the person primarily responsible for the child's care and upbringing, and you can document it.

Here are the main tax credits and deductions kinship caregivers in Canada should know about.

Eligible Dependant Credit (Amount for an Eligible Dependant)

This is the big one that many kinship caregivers miss. If you are single, separated, divorced, or widowed and supporting a child under 18 who lives with you, you can claim the Eligible Dependant credit on line 30400 of your tax return. For the 2025 tax year, the maximum claim is $16,129, which translates to a federal tax reduction of roughly $2,419 at the 15% base rate.

You do not need to be the child's biological parent. You need to:

• Be supporting the child in your home
• Not be living with a spouse or common-law partner (if you have a partner, only one of you can claim)
• Not have another person claiming the same child

For grandparents living alone with a grandchild, this credit may be available if they meet the CRA's eligible dependant rules.

Canada Caregiver Credit

The Canada Caregiver Credit (line 30450 or 30500) provides a non-refundable tax credit for supporting a dependant with a physical or mental impairment. If the child in your care has a disability or infirmity that requires you to provide significantly more support than a child without that condition would need, you may be eligible.

The maximum credit amount for 2025 is $8,375, reduced dollar for dollar once the dependant's net income exceeds $20,066. The credit applies at the 15% federal rate, providing up to roughly $1,256 in federal tax relief.

Child Care Expense Deduction

If you pay for childcare so you can work, attend school, or conduct research, you can deduct those costs. Licensed daycare, before- and after-school programs, day camps, and eligible babysitters all qualify. The deduction limits for 2025 are:

• $8,000 per child under 7
• $5,000 per child aged 7 to 16
• $11,000 per child eligible for the Disability Tax Credit

The deduction is usually claimed by the lower-income spouse or partner. For a single grandparent, you claim it yourself.

Keep receipts. The CRA may ask for them, especially if you are claiming a private babysitter. The provider must give you their name, address, and SIN (or business number) for your claim.

Disability Tax Credit (DTC) and Child Disability Benefit

If the child in your care has a severe and prolonged physical or mental impairment, you can apply for the Disability Tax Credit by having a medical practitioner complete Form T2201. Once approved:

• You can claim the DTC on your own return if the child cannot use it (transfer the credit to a supporting person)
• The child automatically qualifies for the Child Disability Benefit (CDB), a supplement paid on top of the CCB — worth up to $3,467 per year (2026–2027)
• You may claim the $11,000 child care deduction limit instead of the standard age-based limit

The DTC approval is retroactive in many cases, and the CRA can reassess prior years to pay back benefits.

Medical Expense Tax Credit

You can claim eligible medical expenses you paid for the child on line 33099 of your tax return. This includes prescriptions, dental work not covered by insurance, vision care, therapy sessions, and medical devices. The threshold is 3% of your net income or $2,833 (2025), whichever is less — you claim the amount above that threshold.

For kinship caregivers paying out of pocket for a child's dental work, glasses, or medications, this credit can provide meaningful relief at tax time.

How CCB and ACFB Interact With Your Tax Return

The Canada Child Benefit and the Alberta Child and Family Benefit are both non-taxable. They are not included in your income, they do not appear on a T4, and they do not affect your OAS clawback calculation or GIS eligibility. You do not report them as income on your return.

However, filing your tax return is how the CRA calculates your entitlement for the following benefit year. If you do not file, your CCB and ACFB payments will stop. This catches some kinship caregivers who have not filed returns in years because they had no taxable income. Even if you owe nothing, file your return to keep benefits flowing.

Provincial Credits (Alberta-Specific)

Alberta has no separate provincial tax credit specifically for kinship caregivers. The Alberta Child and Family Benefit is an income-tested provincial benefit administered through the federal tax system. Filing your return ensures the CRA can determine eligibility.

Get the Full Picture

Tax credits are one piece of the financial puzzle. Kinship caregivers in Alberta may also qualify for kinship care per diems, Supports for Permanency, Income Support, and the Alberta Child Health Benefit, depending on the care arrangement. The Alberta Kinship Financial Help Guide walks through every program and shows how tax credits fit alongside monthly payments and provincial supports.

See more Alberta guides →