ONTARIO SENIORS CARE AT HOME TAX CREDIT

What is it?

The Seniors Care at Home Tax Credit is a refundable credit that helps seniors offset the cost of medical expenses.

Who is eligible?

• age 70 or older in the tax year, or has a spouse who was 70 or older
• resident in Ontario at the end of the tax year

This credit can be claimed in addition to the non-refundable federal and Ontario medical expense tax credits for the same expenses. As a result, seniors may benefit twice: once through the non-refundable medical expense credit, and again through this refundable credit.

Seniors with modest income and no tax to pay will not benefit from the medical expense tax credit. However if their medical expenses are high enough they may qualify for this refundable credit. Tax preparers should remember not to refrain from entering medical expenses only because taxable income is too low to benefit from the medical expense tax credit.

How much is the credit?

• The credit equals 25% of the portion of net medical expenses that can be claimed (i.e. medical expenses minus 3 % of net income).
• It is reduced by 5% of family net income over $35,000.
• The credit is fully phased out when net income reaches $65,000.
• The maximum credit is $1,500.

For example:

• If total medical expenses are $2,000
• And net income is $15,000
• The amount that can be claimed for the non-refundable medical tax credit is $2,000 - ($15,000 x 3%), which is $1,550.
• The Seniors Care at Home Tax Credit is 25% x $1,550  which equals $387.50

What medical expenses are eligible?

Eligible medical expenses are the same as those for the Ontario Medical Expenses Tax Credit.

How is the credit applied for?

• The credit is calculated automatically in UFile when the individual meets the age requirement and reports medical expenses.
• UFile completes the relevant section of Form ON479.

References:

• Ontario Taxation Act, 2007, s.103.0.6
• Ontario website - Seniors Care At Home Tax Credit