Chapter 4: Measures for Caregivers and Children with Disabilities

Steps to promote the inclusion of persons with disabilities, along with measures to encourage education and employment, should be the overarching goal of tax measures for persons with disabilities. But the fact remains that many persons with disabilities rely to varying degrees on family and friends for financial and other support. Within this group, there are two distinct situations to consider: caregivers providing support to an adult with a disability and families raising a child with a disability.

Many adults with disabilities require some form of assistance. Data from the 2001 Participation and Activity Limitation Survey found that an estimated 1.2 million individuals with disabilities ages 15 to 64 reported receiving help.¹

Individuals providing care to adult family members play a vital role by enabling persons with disabilities and elderly Canadians to live in the community. Indeed, such informal assistance within families is a crucial part of the network of private and public assistance to those requiring support, providing personalized care in familiar surroundings and relieving governments of substantial public costs that might otherwise be incurred.

According to the 2002 General Social Survey, the vast majority of caregivers feel positively about their caregiving responsibilities.² The problem is that there can be negative consequences associated with caregiving, including reduced free time, more health problems and greater non-discretionary out-of-pocket expenses for caregivers.

With respect to financial costs, data from the 2002 General Social Survey show that more than one-third of caregivers under age 65 incurred extra expenses due to their caregiving duties, as did slightly less than 30 percent of senior caregivers.³ Many caregivers face additional economic costs in the form of lost income and employer-provided benefits due to changes in their employment situation, such as quitting a job, retiring early or reducing their hours of work. Further, informal caregivers are not usually remunerated for their work.

The 2002 General Social Survey data reveal that approximately one-quarter (27 percent) of female caregivers ages 45 to 64 and 14 percent of male caregivers in the same age group reported a change of work patterns.⁴ Approximately one out of every ten women and a slightly lower percentage of men lost income due to their care duties.⁵

Families raising children with disabilities must also deal with many challenges not faced by other families. Data from the Participation and Activity Limitation Survey found that about one in four children with some form of activity limitation received help with everyday activities (including personal care) because of a condition or health problem.^{6, 7} This survey also shows that households with children with disabilities had lower household income than households with children without disabilities.⁸

In this chapter, we examine how the personal income tax system recognizes the additional costs incurred by caregivers (of both adults and children with disabilities). But the allocation of funds to parents involves more than just recognizing the costs they incur in respect of disability. There is an important developmental dimension to the support for families with children. We divide this chapter into two sections in recognition of these two distinct purposes of assistance to caregivers — to help recognize the cost of disability and to provide some additional support for child development.

In the first section, we begin with a brief discussion of the role that the tax system plays in addressing caregiving costs. We then deal with the various complex tax measures intended for those who care for adults with disabilities.

The Committee considered the possibility of enhancing the credits that recognize the non-itemizable or hidden costs borne by caregivers. But we decided against this option because these credits include the caregivers of persons over age 65 who may or may not have an infirmity, and thus these credits are not well targeted to the caregivers of persons with disabilities — our priority. Further, providing tax relief for specific, itemizable expenses help ensure that tax relief is directed more towards those most in need of support. We do suggest, though, that the federal government simplify and consolidate, where possible, the various measures intended for caregivers.

With respect to the medical expense tax credit, which recognizes itemizable or specific disability-related costs incurred by caregivers for their dependants, we recommend that this measure be amended to allow those caring for a relative with a disability to claim more of these expenses.

While ensuring proper tax recognition of the costs incurred by caregivers is crucial, we also believe that it is important to enable caregivers to save money in order to provide a better quality of life for their dependant. We therefore recommend that changes be made to the current rollover provisions of registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs).

The second section of this chapter deals with the tax provisions intended for families that care for children with disabilities. We strongly believe that the Child Disability Benefit is key to providing assistance to low- and modest-income families caring for a child with a disability, and we recommend that it be enhanced.

Caregivers may face two types of financial costs: out-of-pocket expenses and reduced income due to loss of capacity to maintain full or stable employment. The tax system is limited in its ability to address these costs.

The purpose of the tax system is not to compensate or reimburse individuals for expenses that they incur or for foregone income. The function of the tax system is to recognize extra costs incurred by Canadians with particular circumstances that reduce their ability to pay tax.

Fairness in taxation requires that individuals in similar situations with similar incomes pay similar amounts of tax. Cost recognition for caregivers in the tax system, effected through tax credits intended for caregivers, ensures that individuals who incur out-of-pocket expenses for the care of their dependants pay no more tax than individuals who do not incur these costs but have the same net income.

However, the tax system represents a blunt instrument for delivering relief to caregivers. The tax system is efficient in cases where the target population is easily identifiable — e.g., eligibility is based on level of income or age or number of children. It is also effective when all members of a given population face roughly the same costs related to similar conditions.

But the tax system is not the most appropriate delivery mechanism when the population is not easily identified or faces varying costs. With respect to eligibility, there is no simple and obvious characteristic to ascertain the status of caregiver. Moreover, persons with disabilities and seniors represent a heterogeneous population, with widely differing needs and associated costs, which means that caregivers also incur highly variable costs.

In cases where costs are not easily quantified, the tax system provides only a flat amount of relief to individuals who meet certain criteria. It thereby plays only a limited role in addressing these costs.

A substantial number of caregivers provide support and care to adult dependants with infirmities or to elderly parents and grandparents. Data from the Participation and Activity Limitation Survey reveal that, among adults with disabilities ages 15 to 64 who reported receiving help, 73 percent received this help from family living with them, 38 percent from family not living with them and 27 percent from friends or neighbours (respondents could choose more than one answer).⁹

The personal income tax system includes measures that recognize both itemizable and non-itemizable costs. Credits recognizing itemizable costs require taxpayers to list the specific non-discretionary costs that they must incur (referred to as ‘itemization’). For example, the medical expense tax credit allows claims for specific extraordinary health costs, including those related to disabilities. To claim this credit, individuals must list the eligible expenses they incurred. Such an approach maximizes fairness by ensuring that tax relief corresponds to actual expenses.

In many cases and for certain types of expenses, however, this itemization can be administratively complex or impractical. Asking caregivers to list additional transportation costs or the marginal costs of housing paid on behalf of their dependants, for instance, would not be realistic. In these cases, the tax system offers recognition of non-itemizable (or general) costs. Individuals who meet certain criteria can apply for a flat amount of tax relief, regardless of actual expenses. The caregiver credit is an example of such a measure.

Caregivers providing care to adult dependants currently receive tax relief in recognition of non-discretionary costs through both non-itemizable measures for general costs and an itemizable measure, the medical expense tax credit, for specific disability-related costs. We review both types of measures in turn.

The personal income tax system currently includes three measures that offer tax relief to a broad range of individuals supporting or providing care to a dependent relative.

In addition to these measures, and as noted in Chapter 2, if individuals do not have sufficient federal tax owing to take advantage of the tax relief offered by the disability tax credit, they can transfer the portion of the credit that they cannot use to a supporting person. Caregivers supporting low-income persons eligible for the disability tax credit can thereby receive tax relief, which recognizes the disability-related expenses they incur on behalf of their dependants.

The caregiver credit gives tax relief to individuals providing in-home care for an adult dependent relative with an infirmity, or a parent or grandparent age 65 and over. For 2004, the maximum credit amount is $3,784 for such a dependant, which results in a federal tax reduction of up to $605 (16 percent of $3,784).¹⁰ The credit amount is reduced dollar for dollar when the dependant’s net income exceeds $12,921 and is fully phased out when the dependant’s net income reaches $16,705.

The caregiver credit was claimed by almost 120,000 Canadians in 2001, the latest year for which data are available. The credit is projected to provide $65 million in tax relief in 2004.

The infirm dependant credit affords tax relief to individuals providing support to an adult dependent relative with an infirmity. The dependant may live in a separate residence.

For 2004, the maximum credit amount is $3,784, which gives a federal tax reduction of up to $605 (16 percent of $3,784). The credit amount is reduced dollar for dollar when the dependant’s net income exceeds $5,368 and is fully phased out when it reaches $9,152. (As noted below, some supporting persons may have a choice as to whether to claim the infirm dependant credit or the caregiver credit, but cannot claim both.)

Close to 15,000 individuals claimed the infirm dependant credit in 2001. It is projected that this tax measure will provide $5 million in tax relief in 2004.

The eligible dependant credit gives tax relief to individuals providing in-home support to a parent, a grandparent, an adult brother or sister with an infirmity or a dependent child under 18.¹¹ The dependant must reside with the supporting taxpayer, and must be wholly dependent for support upon that person at some time during the year.

For 2004, the maximum credit amount is $6,803, resulting in a federal tax reduction of up to $1,088. The credit is reduced when the dependant’s net income exceeds $681 and is fully phased out when the dependant’s net income reaches $7,484.

The eligible dependant credit can be claimed only by individuals who are single, separated, divorced or widowed. Persons who are married or have a common-law partner cannot claim the eligible dependant credit. The purpose of the credit is to recognize that a taxpayer without a spouse who is supporting a dependent child, parent or grandparent is less able to pay tax than a similar person with the same income and no such dependant.

As the eligible dependant credit may be used with respect to both dependants with and without infirmities, the breakdown of individuals claiming this credit for an adult relative with an infirmity is not available.

Source: Department of Finance

A key concern expressed by the disability community is the complexity of the different tax measures available to those caring for adult dependants and the lack of clarity in terms of who can claim the credit. Each of the caregiver measures discussed above has unique eligibility requirements and different income thresholds. Moreover, there are complex interactions between these credits (see box).

Committee members also pointed out that there are no definitions of the terms ‘support’ and ‘infirmity’ in the law (important concepts where tax measures for caregivers are concerned), which adds to the confusion. In addition, the conditions for determining when a person is dependent on a taxpayer vary from credit to credit — e.g., the requirement for the taxpayer and the dependant to reside together or the age of the dependant. Overall, the credits described in this section are not targeted specifically toward persons with disabilities — the Committee’s main focus.

It is not clear that this degree of complexity is required. It has led to a lack of understanding on the part of taxpayers that can negatively affect the take-up rate. We considered some approaches that might simplify and consolidate the different measures, but noted that any new and simpler measure likely would reduce benefits for some. An alternative could be designed so that no one would lose tax recognition, but it would involve substantial fiscal costs.

Taxpayers who are married or in a common-law relationship may apply for the caregiver credit or the infirm dependant credit with respect to a dependant other than their spouse or partner. Taxpayers who claim the caregiver credit for a dependant cannot claim the infirm dependant credit in respect of that dependant, nor can anyone else.

If more than one taxpayer is entitled to apply for the caregiver credit or the infirm dependant credit in respect of the same dependant, they can split the claim for that dependant. The total of their combined claim cannot be more than the maximum amount allowed for that dependant.

Taxpayers who are single, separated, divorced or widowed, and support an adult brother or sister living with them who is dependent by reason of mental or physical infirmity may request the eligible dependant credit. Taxpayers who claim the eligible dependant credit may not claim the infirm dependant credit or the caregiver credit. However, they may apply for an additional amount in cases where the value of the caregiver credit or the infirm dependant credit, had they been able to claim it, would have exceeded the value of the eligible dependant credit. In these cases, they may claim an additional amount equal to the value by which the caregiver credit or the infirm dependant credit (whichever is appropriate) exceeds the eligible dependant credit.

Any of these claims can be combined with a claim for a transfer of the disability tax credit from the dependant, if applicable.

Despite these difficulties, we believe that it would be worthwhile to examine the caregiver credit, the infirm dependant credit and the eligible dependant credit to consider whether simplification, and even consolidation, of the credits might be possible, perhaps over time.

The Committee also considered recommending an increase to these three measures for caregivers. The amount of the caregiver credit and the infirm dependant credit is $3,784 in 2004. This amount recognizes ‘everyday’ out-of-pocket expenses, such as transportation, non-prescription medications and homemaking supplies, incurred over the course of a year for the care of dependants. Clearly, some caregivers incur expenses that far exceed that amount.

However, not all caregivers have out-of-pocket expenses associated with their caregiving responsibilities. The 2002 General Social Survey found that only about one-third of family members and friends who provide care to seniors with a long-term health problem incur extra expenses.¹² Further, the results of a recent survey conducted for Health Canada, the National Profile of Family Caregivers in Canada, suggest that only a small proportion of caregivers pay annual out-of-pocket expenses that exceed the current caregiver and infirm dependant credit amount.¹³ In addition, caregivers can receive tax relief from the disability tax credit (which also recognizes non-itemizable costs) as a transfer from their dependant.

Based on available data, it appears that, in general, the current amounts of credits for caregivers provide appropriate tax recognition of everyday out-of-pocket expenses for most households. We recognize that, in particular circumstances, the expenses incurred by caregivers can significantly exceed these amounts. Nevertheless, the Committee decided that, on tax policy grounds, there were no clear reasons for increasing the amount of the general caregiver measures discussed above. We were particularly concerned, as noted, that the increases would not necessarily be directed towards persons caring for individuals with disabilities.

In many cases, caregivers incur disability-related and medical expenses, in addition to basic living expenses, for a dependent relative. The medical expense tax credit recognizes the effect of itemizable (or specific) above-average medical or disability-related expenses on an individual’s ability to pay tax.

For 2004, the credit equals 16 percent of qualifying medical expenses in excess of the lesser of $1,813 and 3 percent of net income. The net income threshold is used to determine above-average expenses. Taxpayers may claim the medical expenses incurred by themselves and their spouses.

The treatment of expenses paid by taxpayers on behalf of specified dependent relatives was improved in the 2004 federal budget. Prior to that time, the ability of taxpayers to claim expenses in respect of dependent relatives other than a spouse or a minor child was limited.

The 2004 federal budget proposed to allow caregivers to claim more of the medical and disability-related expenses they incur on behalf of dependent relatives. Specifically, for medical expenses paid on behalf of dependent relatives, such as a parent, grandparent, brother, sister, aunt, uncle, niece or nephew, taxpayers will be able to claim qualifying medical expenses that exceed the lesser of 3 percent of the dependant’s net income and $1,813.¹⁴ The maximum eligible amount that can be claimed on behalf of dependent relatives will be $5,000.

This provision will ensure that caregivers receive fair recognition under the income tax system for medical and disability-related costs for dependent relatives. The Committee welcomes this measure.

We are concerned, however, that the maximum eligible amount that may be claimed on behalf of dependent relatives by caregivers under the medical expense tax credit is capped at $5,000 per year. While the limit is adequate for some, others will find that the eligible amount is restricted to less than their actual costs, especially for those caring for a dependant with a severe disability.

The Committee therefore recommends an increase in the amount that can be claimed by caregivers with dependants eligible for the disability tax credit.

The Committee recommends that:

The estimated cost of this measure is $5 million annually.

Increasing the maximum eligible amount would allow caregivers to claim even more of the medical and disability-related expenses they incur on behalf of dependent relatives, as illustrated on page 97.

Diane provides support to her adult son, Patrick, who is eligible for the disability tax credit. Patrick has a part-time job and earns $10,000 annually. Diane pays all of Patrick’s medical expenses, which are $8,000 a year. Diane currently has a net income of $50,000.

Under the measure introduced in the 2004 federal budget, Diane would be able to claim the portion of Patrick’s medical expenses that exceed 3 percent of Patrick’s net income, up to a maximum of $5,000. The $5,000 limit would prevent Diane from claiming all of the expenses in excess of Patrick’s 3 percent threshold. She would claim $5,000 in expenses, for a federal income tax reduction of $800 ($5,000 x 16%).

Medical expenses incurred on behalf of Patrick $8,000

Less: 3% of Patrick’s net income ($10,000 x 3%) -300

Net medical expenses $7,700

By increasing the limit from $5,000 to $10,000, Diane would be able to claim $7,700 in expenses, for a federal income tax reduction of $1,232 ($7,700 x 16%)

Caregivers also need to plan for the future. One of the most important concerns for parents caring for children with severe disabilities is to ensure that they will be properly provided for during and after the lifetime of the parents.

While there is no specific tax-assisted vehicle for disability-related savings, the tax system does include measures that support the use of tax-deferred savings for this purpose. Persons with disabilities and their families, like all Canadians, are able to benefit from the deferral of tax on contributions to registered retirement savings plans (RRSPs), which encourages and assists Canadians to save for retirement. Contributions to these plans are deductible from income. The investment income is not taxed as it accrues and all withdrawals and benefit payments are included in income and taxed at regular rates.

When the annuitant (or owner) under an RRSP or a registered retirement income fund (RRIF)¹⁵ dies, the value of the RRSP or RRIF is generally included in computing the deceased’s income for the year of death. However, preferential tax treatment on RRSP or RRIF distributions made after death is provided in certain cases. These include the distribution of proceeds to a child or grandchild who was financially dependent on the deceased annuitant by reason of physical or mental infirmity. In this case, the proceeds from the registered retirement savings plan or registered retirement income fund may be transferred without tax to the registered retirement savings plan of the child or may be used to purchase an immediate life annuity.

For 2004, a child or grandchild is considered to be financially dependent if the child’s income for the year preceding the year of death was below $14,035. This threshold is indexed to inflation.

In its submission to the Committee, the Planned Lifetime Advocacy Network (PLAN) proposed a number of changes to the current provisions regarding the rollover of registered retirement savings plans and registered retirement income funds to a dependant with a disability.

We carefully examined these and similar proposals. While some of them might allow significantly greater flexibility in providing support through registered retirement savings plans to dependants with disabilities, the Committee wanted to ensure that favourable tax treatment be limited to those cases where the plan was intended exclusively for the benefit of persons with disabilities. The main issue is the desire to introduce discretion with respect to annual distributions to persons with disabilities who might be the beneficiary of a registered retirement savings plan.

Given that it is difficult to forecast the needs and circumstances of persons with disabilities many years in advance, such discretion will prove to be helpful in matching payouts to actual current requirements. It may also provide an opportunity to govern distributions to or for persons with disabilities to ensure that they continue to qualify for social assistance and other public programs. However, such discretion may also enable individuals without disabilities to benefit from the tax deferral.

Balancing all of these concerns, we believe that some additional flexibility in dealing with registered plans that are to provide benefits to persons with disabilities would be justified, with appropriate safeguards.

The Committee recommends that:

The revenue cost of this measure is small.

In our discussions, the Committee also noted that the establishment of tax pre-paid savings plans has been suggested by a number of tax policy experts. If such a program were set up, families may be able to use such plans to provide an additional long-term support to their children with disabilities.

A tax pre-paid savings plan involves establishing registered savings vehicles where the contributions are not deductible for tax purposes, the annual income of the plan is exempt from tax and distributions from the plan are not included in the tax base. The Committee suggests that if the government proceeds with introduction of such a plan, the position of dependants with disabilities should receive specific consideration.

According to the 2001 Participation and Activity Limitation Survey, an estimated 155,000 children between ages 5 and 14 who were living in households had activity limitations in that year. This number represents about 4 percent of all children in this age group. Of these children, about 89,000, or 57 percent, experienced mild to moderate disabilities, while the remaining 66,000, or 43 percent, experienced severe to very severe disabilities.¹⁶

Most parents or guardians who have children with disabilities face additional challenges. The extra cost of raising a child with a disability can cause financial hardship. The needs of the child often force one parent to quit work or seek a part-time or less demanding job. Like most families, these parents want to ensure that they can provide developmental opportunities that are available to other children.

There are three tax-based measures for families caring for children eligible for the disability tax credit that recognize the financial burden of families. The first two are measures that recognize the higher costs of raising a child with a disability and the third is a supplement to the Canada Child Tax Benefit, a benefit delivered through the tax system. The Committee felt that the latter also recognizes the need to help families provide for the development of their children.

The disability tax credit has a supplement for children, which affords additional tax relief for children with severe and prolonged disabilities who qualify for the disability tax credit.

For 2004, the supplement provides an additional federal tax reduction of up to $605 or 16 percent of $3,784. To target this extra relief to families providing unpaid care, the $3,784 supplement amount is reduced dollar for dollar by the amount of child care expenses or attendant care expenses claimed under the medical expense tax credit over $2,216.

The number of tax filers claiming the disability tax credit supplement for children is not available, as it is combined with all other taxpayers claiming the disability tax credit. Similarly, the tax expenditure on the disability tax credit includes the disability tax credit supplement for children.

The child care expense deduction recognizes the child care costs incurred by single parents and two-earner families in the course of earning business or employment income, pursuing education or performing research. The child care costs of couples may also be recognized when one or both parents are pursuing education, or when one parent is incapable of caring for children due to a mental or physical infirmity. The infirmity needs to be certified in writing by a medical doctor.

In general, the child care expense deduction may be claimed in respect of children under age 16, with a limit of $7,000 for care of children under age 7 and $4,000 for children over age 7. However, child care expenses may be claimed for a child of any age if that child is dependent by reason of mental or physical infirmity (including being eligible for the disability tax credit). In addition, the child care expense deduction limit is more generous in respect of children who qualify for the disability tax credit ($10,000, regardless of age).

The main federal instrument for providing financial assistance to families with children is the Canada Child Tax Benefit, an income-tested benefit delivered through the tax system. The Canada Child Tax Benefit (CCTB) has two main components: the CCTB base benefit, which assists low- and middle-income families, and the National Child Benefit supplement, which provides additional assistance to low-income families.

Both the CCTB base benefit and the National Child Benefit supplement are income-tested based on family net income.

The Canada Child Tax Benefit has a supplement, the Child Disability Benefit, which was introduced in the 2003 federal budget. It is paid to families on behalf of children who are eligible for the disability tax credit. The benefit helps recognize the special needs of low- and modest-income families with a child with a disability. For the July 2004 to June 2005 benefit year, eligible recipients receive their annual Child Disability Benefit entitlement of up to $1,653 per qualified child as part of their monthly Canada Child Tax Benefit. The full $1,653 Child Disability Benefit is paid for each eligible child to families with net income below the amount at which the National Child Benefit supplement is fully phased out — $35,000 in July 2004 for families with three or fewer children.

Beyond that income level, the Child Disability Benefit is reduced. It phases out entirely when net family income reaches $48,549 for a family caring for one child with a disability, $49,564 for a family caring for two children with disabilities and $50,258 for a family caring for three children with disabilities.

The 2003 federal budget projected that the Child Disability Benefit would assist

40,000 families and cost $50 million per year.

The Committee strongly believes in the importance of providing a benefit to low- and modest-income families with children with disabilities. There are improvements that can be made to the current design.

First, there is room to increase the amount of the Child Disability Benefit to help families defray additional disability-related costs. Raising the amount of the benefit would deliver extra help to families caring for children with severe disabilities. The federal government would have to work with provinces and territories to ensure that any increase in the Child Disability Benefit would not reduce social assistance or other income-tested benefits.

Second, some families caring for a child with a disability are not eligible for the Child Disability Benefit. Because of its relatively low phase-out ($48,549 in 2004 for a family caring for one child eligible for the disability tax credit), only a few middle-income families and no higher-income families receive the benefit.

The Committee considered recommending that the Child Disability Benefit be paid to families with incomes above the current phase-out level — $48,549 of income in 2004 for a family caring for one child eligible for the disability tax credit. For example, the Child Disability Benefit could be extended to the same phase-out point as the Canada Child Tax Benefit — approximately $95,000 of income.

The phase-out option would respond to a concern raised by middle-income families that currently receive a reduced benefit or none at all. This option would also harmonize the design of the Child Disability Benefit with the Canada Child Tax Benefit, which effectively acts as the delivery agent for the disability portion.

The Canada Child Tax Benefit is paid to most families to help with the costs of raising children. Because the Child Disability Benefit provides additional assistance for disability-related costs, its extension to all families caring for a child with a disability that currently receive the Canada Child Tax Benefit should be considered a longer-term goal. While offering greater income support to middle-income families caring for a child with a severe disability is important, the Committee decided, given fiscal constraints, not to make a formal recommendation in this regard.

The Committee identified another potential source of funds for this measure. We discussed the fact that if an enriched Child Disability Benefit were delivered to most eligible families, then the government could consider reducing or even eliminating the disability tax credit supplement for children. The funds made available through the potential elimination or reduction of the disability tax credit supplement for children could be redirected to the Child Disability Benefit.

However, the elimination of the disability tax credit supplement for children would mean that some higher-income families would lose a modest amount of tax relief. Because of their higher incomes, these families are not eligible for the Child Disability Benefit and they would lose the tax recognition they currently receive through the disability tax credit supplement for children. There would still be a need to provide tax recognition through the disability tax credit supplement for children. The Committee therefore decided not to make a recommendation in this regard.

With these considerations in mind, the Committee recommends that the Child Disability Benefit be enhanced.

The Committee recommends that:

The estimated cost of this measure is $15 million annually.

Finally, we recognized in our discussions that tax-related measures for caregivers are only one component of a broader set of federal policy instruments. As will be discussed in the Future Directions chapter, in part the special needs of caregivers might be better met by programs outside of the tax system that provide supports and services at home and in the community.

¹ Statistics Canada, Disability Supports in Canada, 2001 — Tables, Catalogue no. 89-581-XIE, 2003, p. 20.

² Statistics Canada, General Social Survey, Cycle 16: Caring for an aging society, Catalogue no. 89-582-XIE, 2003, p. 13.

³ Ibid., p. 14.

⁴ Ibid., p. 15.

⁵ Ibid., p. 16.

⁶ Statistics Canada, Children with disabilities and their families, Catalogue no. 89-585-XIE, 2003, p. 7.

⁷ In the Participation and Activity Limitation Survey, separate questionnaires were used for children up to age 14 and those ages 15 and over.

While Statistics Canada provides information on those ages 15 to 24 in its public releases, the Committee feels it would be useful if the data could be disaggregated into categories of 15 to 19 and 20 to 24, for example.

⁸ Statistics Canada, Children with disabilities and their families, Catalogue no. 89-585-XIE, 2003, p. 11.

⁹ Statistics Canada, Disability Supports in Canada, 2001 — Tables, Catalogue no. 89-581-XIE, 2003, p. 20.

¹⁰ Additional credits are provided by the provinces and territories. All amounts noted are indexed to the cost of living.

¹¹ The eligible dependant credit was formerly referred to as the equivalent-to-spouse credit.

¹² Statistics Canada, General Social Survey, Cycle 16: Caring for an aging society, Catalogue no. 89-582-XIE, 2003, p. 13.

¹³ Decima Research Inc., National Profile of Family Caregivers in Canada — 2002, 2002, pp. 21—22.

¹⁴ Medical expense claims made on behalf of minor children are pooled with the medical expenses of the taxpayer and his or her spouse or common-law partner, subject to the taxpayer’s minimum expense threshold (the lesser of 3 percent of the taxpayer’s net income and $1,813), without, as proposed in the 2004 federal budget, regard to the income of the minor child.

¹⁵ Individuals are required to convert an RRSP to a RRIF or purchase an annuity with their RRSP savings by the end of the year they turn age 69. Although contributions to RRIFs are not permitted, the investment income continues to accrue on a tax-deferred basis. However, minimum RRIF withdrawals must start the year following conversion from an RRSP. The purpose of these rules is to ensure that savings in RRSPs are used to generate income in retirement, consistent with the basic purpose of the tax deferral.

¹⁶ Statistics Canada, Children with disabilities and their families, Catalogue no. 89-585-XIE, 2003, p. 6.