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Tax Credits: Helping You Manage Your Finances After Retiring

Tax Credits: Helping You Manage Your Finances After Retiring
Catégorie : Home care  

Good to know! You now have access to tax credits! 

This very interesting article in the Journal de Montréal tells readers about the tax credit available to help pay for retirement housing expenses as well as home-support expense.

“According to Statistics Canada, couples living in Quebec spend almost 20% of their budget on housing, which represents their largest annual expense. This percentage tends to increase at retirement due to the drop in household income.”

Tax credit for home-support services for seniors

This tax credit is available to seniors who are 70 or older at the end of the current tax year.

For the 2017 tax year, this credit covers 35% of eligible home-support expenses. “Home” means wherever you live, be it a house, apartment, a retirement home or condo.

The credit is adjusted based on your marital status and income.

  • For example, a single person with a maximum income of $56,515 could claim a maximum of $19,500 in home-support expenses in 2016, entitling him or her to a refund of $6,630 (as the percentage was 34% in 2016).

The services you are eligible for will depend on where you live. Generally, however, companionship services, home care and adaptive aids are all eligible for the tax credit.

This credit can also be paid out in advance monthly payments. For full details on the tax credit for home-support services for seniors, click here.

To view descriptions of eligible services offered by Home Instead, click here.

Tax credit in a retirement home

Good to know!

“A large portion of the monthly fees paid by seniors living in a retirement home is eligible for the tax credit, as they represent the costs paid by the owner for maintenance, care and/or meals that are eligible.”

These fees are included in your rent.

How to reduce this expense when living in a retirement home?

This credit is for seniors who are 70 or older at the end of the current tax year.

It is calculated based on your income, the services offered at your residence and the amount of your rent upon signing the lease.

  • For example, an autonomous 70-year-old living alone in a retirement home and paying $2,000 a month in rent (including one meal a day) would receive a monthly refund of approximately $315.

Given that many variables are taken into account when calculating the credit, we strongly suggest that you use the calculator provided on the Revenu Québec website. Click here to access the calculator.

To learn more about choosing a residence that’s a good fit for your needs and budget, please consult a Visavie Senior Living Advisor by clicking here.

To consult the Journal de Montréal article, click here.