Introduction
As tax season just opened, Equinoxe LifeCare stands ready to assist families across Quebec. In this blog, we’ll explore the top 5 essential tax credits available to seniors and their families. At the end of the blog, you will find a PDF of our Tax Guide, which features more credits you can benefit from. We’ll outline key credits, their coverage, and eligibility requirements.
As always, consulting a financial advisor or an accountant for personalized advice is recommended.
1. Home-Support Services for Seniors
Quebec residents aged 70 and older may qualify for a refundable tax credit for home-support services. Eligible expenses include nursing or personal care services, with up to 38% of those credited off 2023 tax returns.
Eligible Services:
- Weekly laundry and housekeeping.
- Daily meal, nursing, and personal care services.
2. Medical Expenses
Seniors and individuals with disabilities may qualify for the Quebec tax credit for medical expenses. Keeping detailed records of all medical-related costs, including home care services, is crucial. Eligible expenses encompass a range of services such as nursing care, personal support, and practitioner appointments.
Eligibility:
- Remuneration paid to individuals over 18 or spouses.
- The remuneration was paid to a person who, at the time, was neither your spouse nor under the age of 18
- The person who received the care:
- Has a severe and prolonged impairment in mental or physical functions, or
- Is dependent on others for his or her personal needs and care for a prolonged period of time due to an infirmity, as certified in writing by a practitioner
3. Caregiver Tax Credit
Family members providing care for elderly relatives could be eligible for the Caregiver Tax Credit. Proper documentation of care provided and the relationship to the recipient is essential.
Eligibility Conditions:
- Quebec residency on December 31 of the claim year.
- No remuneration received for caregiving.
- The spouse is not claiming any amount related to the caregiver.
- Not exempt from tax for the claim year.
4. Age Amount
Individuals aged 65 or older on December 31st of 2023, with a net income lower than $92,480 may claim a federal tax credit of $2,000, eligible couples can claim $4,000 The full amount of $7,898 is available for those with a net income under $32,826.
Please note that special rules apply if you were bankrupt, immigrated to or emigrated from Canada during the tax year.
5. Senior Assistance Tax Credit
Individuals aged 70 or older on December 31st 2023 can claim a maximum refundable tax credit of $2,000, or $4,000 for eligible couples. This credit is automatically paid upon filing an income tax return.
For eligible couples, only one of you must complete this form and you can decide how to divide the money between the two of you.
Conclusion
Aging at home can be expensive and it is important to know what resources are available to you. These credits can allow seniors to age in place while benefitting from quality care offered by private home care agencies like Equinoxe LifeCare. You should consult your financial advisor or your accountant to better understand what you qualify for.
Navigating tax credits can significantly benefit seniors and their families. By understanding the available credits and meeting eligibility criteria, individuals can maximize their savings during tax season. We encourage seniors and their families to explore these opportunities and seek professional advice for tailored financial planning.
You can find more information from the following sources and our Tax Guide linked below.