Transfering DTC

I am thinking about applying for the DTC. I earn a taxable income but it’s under 20 grand. I have been working for all of the years I can claim retroactively. It says I can transfer unused portions of the credit to a family member. I have been told it needs to be a caretaker but I called the CRA today and they said it can be anyone in my family. Like even my aunt. My question then is how would a refund work then? Would the person I transfer the credit to get a refund or would I? Or both of us?

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It’ll reduce the taxes owed of the person you transfer it to so they will get the refund.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-318-disability-amount-transferred-a-dependant.html

Is there any way I can transfer it so it only reduces their taxes payable but I get the refund? They want me to transfer it because I suspect they want a refund and I’m tired of arguing with them but I could really use it myself. I’ve talked to them about sharing any refund (which there should be since there will be retroactive years) and they became very defensive. I’m sure they want it to pay off some of their debt but it would be really helpful for me to find a better place to live because it’s not a good area where I’m at and the housing costs are insane where I live. At least any place that is half decent and isn’t next to a drug house or something…

It is my understanding that if you are over the age of 18 and have an income it is your tax credit…when filling out the form you authorize a caregiver and this is the only person that is able to claim/share your credit. If you file your taxes and use the whole credit your authorized caregiver cannot claim the credit at all…

That being said if “your caregiver” was the one that filed the forms it was probably not the person that you are currently fighting with…find out who is the authorized caregiver

You can contact CRA If you have any questions about the disability tax credit, please call Canada Revenue Agency toll free at 1-800-959-8281. If you are calling from outside Canada and the United States, call 1-613-940-8495 (we accept collect calls)

I know it’s my tax credit but because I lived with them they say they are owed it for letting me stay with them and for the costs of running the house (hydro, water, general maintenance and all of the building that has gone into it since it was built from the ground up which is where their debt is coming from). I don’t have a caregiver. I can feed, dress and bathe myself. I buy all of my own food, clothing, toiletries, etc. I haven’t even seen my doctor to fill out an application or anything because I’ve been stalling hoping they will forget about it. But they’re on my case about it again and seem dead set on getting it. I’m tired of arguing with them about it and I would rather just not be approved at this point to be honest. Because I know if I claim it all on my taxes and don’t authorize them to take a portion of it then it will cause a huge problem that I don’t want to deal with. They got really bent out of shape when I asked if they would at least give me SOME of the refund if I was approved.

I called the CRA yesterday and the man on the phone told me that the DTC can be transferred to any family member or a spouse and that the ‘caregiver amount’ is something entirely different.

Have you been approved for the DTC?
You have to apply and be approved.
It you don’t want the other person to get it either lie and say you were denied or do a really poor application and get denied.

were dependent on you for all or some of the basic necessities of life (food, shelter, or clothing).

I could do that though they want to fill out the application with me so they can put me down as a dependent. They are very adamant about controlling this process.

Phone CRA and explain the situation and ask them what do to.

I’m on disability assistance and have a different address as of midway through last year. He wants me to put down his address and say I was living with him. Would the CRA compare the address in the application to the one I have on my assistance confirmation? If I put myself down as living at home and being a dependent what would happen?

I would report him to CRA.
Asking you to lie to them is a really bad idea.

Even if I WERE dependant on him would I be legally required to transfer the DTC? I told him I couldn’t and he said I was screwing him over because it costs money to keep a house running.

Nope, you’re choice.

Were you under 18 at the time?
If you were then he may be legally responsible to provide housing (whoever had custody).

I would consider cutting ties with him.

No I wasn’t. I moved back in with him after my friend got engaged and moved out with less than a months notice. I couldn’t afford a place on my own nor find a suitable roommate to live with. Rental prices just keep going up and up. Average here used to be 600-800 for a one bedroom and now it’s 900-1200. I make as much at my work as the government will allow and it’s still not enough.

You can’t use it for yourself?
Couldn’t you say you will use it yourself (even if you won’t :-))?
You need to decide if it is worth burning a bridge over.

I’m not sure if I can. I know I need to claim it first to reduce my taxable income to zero and then I can transfer it. Either way he won’t accept it if I say I’m going to use it myself. He said I can’t. I don’t know if he meant I can’t because I don’t pay taxes or I can’t because he won’t let me.

I have no idea what happens if you list him on the application.

I found out I actually can’t because 1. I pay rent and have a rental agreement. And 2. He doesn’t pay for ANY of my food or clothing. I also don’t have medical bills in general other than seeing a chiropractor but I pay for that. So according to the government I’m not dependant on him.

Sounds good, that should quiet him. :slight_smile: