Tax Credits for Kinship Caregivers in Canada

When you take in a grandchild or a relative's child, the tax implications are rarely the first thing on your mind. But filing your return correctly can put real money back in your pocket — or protect you from losing benefits you are already receiving. Here are the CRA tax credits and provisions that matter most for kinship caregivers in Canada.

The Eligible Dependant Amount (Line 30400)

If you are single, separated, divorced, or widowed and meet the other CRA conditions, you may be able to claim the amount for an eligible dependant (formerly called the "equivalent to spouse" amount). For 2026, the maximum federal claim amount is $16,452, which can reduce federal tax by up to about $2,303 at the 14 per cent credit rate.

You can only claim one eligible dependant, even if you are raising multiple children. The eligible person must be related to you, have lived with you in a home you maintained, and meet the support and net-income tests. The qualifying relationships include a child, grandchild, brother, or sister under 18, and a parent or grandparent; a niece or nephew does not qualify for this amount.

If you receive the Canada Child Benefit (CCB) for the child, you can still claim the eligible dependant amount — the two are independent. You generally cannot claim line 30400 if you have a spouse or common-law partner living with you and supporting you or being supported by you; CRA has a separate test for people who are living apart and considered separated.

Canada Child Benefit — Non-Taxable

The CCB itself is not a tax credit — it is a non-taxable monthly payment and is not included as income. It does not inflate your Adjusted Family Net Income (AFNI), and it is excluded from Saskatchewan Income Support (SIS), Saskatchewan Assured Income for Disability (SAID), and Saskatchewan Employment Incentive (SEI) income calculations.

Maximum CCB amounts for the July 2026 to June 2027 benefit period:

• Under six: up to $8,157 per year ($679.75/month)
• Ages six to seventeen: up to $6,883 per year ($573.58/month)

The maximum applies when AFNI is below $38,237; payments are reduced above that threshold. For kinship caregivers on fixed pensions or low wages, the full or near-full amount is common.

If the child is under a PSI order where the Ministry of Social Services pays maintenance, you cannot receive the CCB — the Ministry claims the Children's Special Allowance instead. PSI maintenance payments are also non-taxable under paragraph 81(1)(h) of the Income Tax Act and do not need to be reported.

Disability Tax Credit (DTC) and Child Disability Benefit

If the child in your care has a severe and prolonged physical or mental impairment, the Disability Tax Credit can provide significant tax relief. You apply by submitting CRA Form T2201, which must be certified by the child's doctor or other qualified medical practitioner.

For 2026, the DTC disability amount is $10,341, with a $6,032 supplement for a person under eighteen. If the child cannot use the full amount against their own tax, some or all of it may transfer to an eligible supporting family member under CRA rules.

DTC approval can make a child eligible for the Child Disability Benefit (CDB) if the caregiver is also eligible for CCB. For July 2026 to June 2027, the CDB is up to $290 per month ($3,480 per year) and is reduced when AFNI exceeds $82,847; this threshold differs from the CCB threshold.

In Saskatchewan, a family otherwise eligible for the Active Families Benefit can receive up to $300 per child per year, or $400 for a child with a disability.

Canada Groceries and Essentials Benefit (formerly GST/HST Credit)

The Canada Groceries and Essentials Benefit (CGEB) replaced the GST/HST credit in July 2026. If CRA is paying you CCB for an eligible child, that child is automatically included when CRA calculates your CGEB amount. The benefit is calculated using family income, marital status, and the number of eligible children.

The CGEB is a tax-free payment, even if you owe no tax. Payments are issued quarterly (July, October, January, and April). For low-income kinship caregivers, the amount for an eligible child can add over $170 per year.

Medical Expense Tax Credit (Lines 33099 and 33199)

Eligible out-of-pocket medical expenses — such as prescriptions not covered by your provincial plan, eyeglasses, dental work, physiotherapy, and qualifying travel for medical appointments — may be claimed on your return. For a 2025 return, line 33099 applies to expenses for you, your spouse or partner, and your or your spouse's children under 18; the claim is reduced by the lesser of three per cent of your net income or $2,834. For a dependent grandchild or other relative, line 33199 applies and uses the dependant's net income for the threshold calculation.

Keep receipts for everything. Kinship caregivers often pay for medical costs out of pocket during the gap between taking in a child and getting provincial health coverage set up. Those expenses are claimable.

What Is Not Taxable

Several income streams that kinship caregivers receive are explicitly non-taxable:

• PSI maintenance payments — exempt under ITA 81(1)(h)
• Canada Child Benefit — non-taxable, not reported as income
• SEI payments — non-taxable
• Child Care Subsidy — not income

One exception: CPP Children's Benefits (paid when a child's parent has died or is receiving CPP Disability) are taxable in the child's name. In 2026, the maximum is $307.81 per month ($3,694 per year). Whether the child owes tax depends on their total taxable income, but the benefit must be reported on the child's return.

Filing Tips for Kinship Caregivers

• File a return even if you owe nothing. The CCB, Canada Groceries and Essentials Benefit, and several provincial benefits (including the Active Families Benefit) are calculated from your return. No return means no benefits.
• Apply for CCB when the child starts living with you. A court order is not required for a CCB application; the eligible dependant amount has separate CRA relationship, residence, support, income, and marital-status tests.
• Keep a paper trail. If CRA questions your claim, you will need school enrollment letters, medical records, or a court order showing the child lives with you.

Our Saskatchewan kinship financial help guide walks through every benefit and tax provision in one place, with a checklist of documents to gather before tax season.

See more Saskatchewan guides →