The tax credit for home support services for seniors (2022 edition) : what you need to know!
Staying at home for a long time in retirement is a goal for many. The tax credit for home support for seniors exists specifically for this purpose: to allow seniors to remain in the comfort of their current living environment for as long as possible. This tax credit is in fact a financial aid granted by the Quebec government in this sense. By reimbursing a portion of the necessary services, such as home care and maintenance services, for example, this provincial credit encourages seniors to remain in their homes. It becomes easier to remain in the comfort of one’s own home with all the necessary services, while respecting one’s finances. This is a very interesting advantage. It is therefore important to take the time to understand everything you need to know about this tax credit for seniors. In 2022, the tax credit is equal to 36% of eligible expenses. The tax credit rate will increase by 1% each year until it reaches 40% in 2026.
Who can be entitled to the tax credit for home support for seniors?
In Quebec, any person aged 70 and over and residing in the province (as of December 31) may be entitled to this credit. In order to be able to make the request, you must of course need services that promote home support. We have made a list (see below in this article) with concrete examples of the different categories of eligible services in order to apply for this tax credit.
As soon as the three previous criteria (being 70 years of age and over, residing in Quebec and having used eligible services) are met, you become eligible for the tax credit for home support for seniors.
Have you just turned 70? You therefore already have the right to request this reimbursement. However, the calculation will have to be done from your birthday. Only the portion of the year that you were 70 years old will be taken into account. And rest assured, whether you have to pay tax or not, you are still eligible for this credit if you meet the eligibility criteria.
What are the eligible expenses?
Eligible expenses represent all the expenses accumulated during the year for services the purpose of which is home support. In order to complete your request, you will of course need to be able to justify the amount requested. It is therefore requested to keep all the invoices for the various services.
It is also important to note that only the expenses related to the services as such can be taken into account. The costs of material goods and products needed for these services cannot be included in the calculation. For example, dressing assistance services are eligible, but the cost of clothing is not. Another example would be the possibility of claiming reimbursement for the maintenance costs necessary for home support without it being possible, on the other hand, to recognize the cost of household maintenance products that had to be purchased.
The many services eligible for the credit for home support services for the elderly
A wide variety of different types of service can be factored into the calculation for this credit. Here is a list of examples of services eligible for the tax credit for home-support services for seniors:
- meal delivery or preparation services;
- home care (nursing or other home health care);
- personal care assistance services (bathing, dressing, feeding, etc.);
- any type of maintenance service (housekeeping, snow removal, grounds maintenance, domestic help, etc.);
- the use of babysitting services as needed;
- or, for example, a security service such as the use of an emergency call device.
Owner or tenant?
Whether you own the house or condo in which you live, or rather rent your place of residence, you are eligible for this refundable credit. The calculation is not exactly the same in either case, however.
As the owner of your home, your eligible expenses are the total amount paid for eligible services during the year. For owners of a condo (condominium apartment), it is also possible to take into account eligible services that would already be shared between the co-owners, such as the maintenance costs of common areas or snow removal from the parking lot, for example. A special form must then be completed: Information return – Tax credit for home support services for seniors (TPZ-1029.MD.5). This form is of course available on the Revenu Québec website. Condo owners can then add the annual expenses for eligible personal services that were required in the year.
If you are more of a tenant, then it is possible to take into account a portion of your rent. This calculation will be made according to the percentage of the rent that corresponds to certain services eligible for home support. To this percentage, you can then add your eligible personal expenses as well.
It is also possible, for seniors living in a private seniors’ residence, to deduct a percentage from the rent since the latter is very likely to include certain services that might otherwise have been eligible. The deductible proportion represents 5% of the monthly rent (calculated based on a maximum rent amount of $ 600).
If in doubt, do not hesitate to ask your accountant for help. He will be able to guide you if necessary in all these particularities.
For more details, we can also, at Visavie, help you and explain how our home help services can be eligible for this credit. Do not hesitate to call on our advisors to assist you in your efforts.
What is the amount of this credit?
The precise amount of the tax credit for home support services for seniors, of course, varies from person to person. It can also change from year to year. Different criteria influence the amount that will be reimbursed to you such as your income, your family situation and, of course, the total eligible expenses for the current year.
The credit is actually 35% of the maximum eligible expenses for which you are eligible. For someone whose annual income is greater than $ 60,135 (amount for 2021 which is adjusted each year according to indexation), the percentage would then be reduced a little accordingly.
The maximum authorized amount differs according to your family and personal situation. Here is the calculation which is possible under three different scenarios.
- Independent single person: In this scenario, the total eligible expenses will be accounted for up to a maximum of $19,500 per year. Thus, according to the 36% calculation, the refunded credit would be $7020 for the year 2022.
- Non-autonomous single person: For a dependent person who lives alone at home, this maximum expense total will be higher ($25,500/year). The amount of the tax credit for home support can therefore reach $9,180 for the year 2022.
- A couple: In the context of a couple who still reside at home together, it is simply a matter of adding up the maximum eligible amount for each of the two people. For example, if you are both considered independent, the maximum eligible expenses are $39,000 (2 × $19,500). Thus, the maximum tax credit for the year 2022 is $14,040, or 36% of $39,000.
When to apply
It is possible to apply for this credit when filing income tax at the end of each financial year (tax filing period). For information, then Annex J must be completed.
Note that it is also possible to request it in advance. You will thus be entitled, according to the various criteria taken into account, to advance payments. This advance credit request allows you to receive the amount you are entitled to each month. Everything is then paid by direct deposit into your bank account. It is important to know that you must then declare these payments during the annual filing of your taxes. For this reason, and even if you do not have to pay taxes, filing a tax return is mandatory.
In short, for more details on how to apply for the tax credit for home support for seniors, visit the Revenu Québec website. There you will find even more useful information to complete your refundable tax credit application.
With the help of this credit, you will be able to benefit more easily from the various home care services adapted for the elderly offered by our professionals at Visavie. These include health care, assistance with meals or hygiene, but also specialized care, for example. All of this can be delivered on budget with the help of tax credits like this. You will therefore be able to continue living at home while benefiting from the necessary services, according to your needs.
⇒ Living in Ontario? Our article Seniors’ Home Support Tax Credit in Ontario, adapted to the Ontario reality, might interest you.