Are home health care expenses tax-deductible in Canada? Yes. You can claim these expenses if you’re a caregiver for a close relative. There are several types of caregiving expenses that you can claim, including Attendant care, group home health care, and the Refundable medical expense supplement (RMETC).
Attendant care expenses
If you are searching for home health care services, you may be wondering if your expenses are taxable. You are not alone. In fact, many Canadians are wondering the same thing! You may have already considered home health care, but are unsure whether it qualifies as an expense. Fortunately, there are many ways to make sure your expenses are deductible. In this article, we’ll explain how you can take advantage of both METC and DTC.
You can claim attendant care expenses for a spouse or child under age eighteen, as long as they are in a self-contained domestic establishment. You don’t need a disability certificate, but you can have a qualified medical practitioner certify that the person is likely to become dependent on someone else. If you are unsure of whether your expenses qualify, you can visit All About Seniors.
Group home health care expenses
Group home health care expenses are tax-deductible for both the caregiver and the client. The caretaker is not a dependent on the client, but the expenses must be incurred to care for the client. The caregiver’s wages are also tax-deductible. Group homes are generally single-family dwellings, where individuals require supervised living conditions. Common residents of group homes include those recovering from substance abuse or disabilities.
Medical expense tax credit (METC)
If you are receiving home health care, you may qualify for the medical expense tax credit, or METC, for your caregiver’s costs. The METC is non-refundable and applies to all eligible medical expenses for yourself, your spouse or common-law partner, dependent minor children and other dependants. You must claim at least one eligible medical expense per year, and the total amount cannot exceed your taxable income.
You can claim the METC for the full-time wages of your attendant for a home health care service. The courts have defined “one full-time attendant” as the total remuneration you pay to any number of attendants. The remuneration you claim must be for the services of one attendant at a time. In addition, you must meet the criteria for disability and be certified by a qualified medical practitioner.
Refundable medical expense supplement (RMETC)
You can claim your deductible home health care expenses as a refundable medical expense on your federal tax return. These expenses must be related to your care as a qualified individual and must be directly related to your healthcare. The RMETC can help you pay for your expenses that you can’t otherwise afford. Listed below are the different types of expenses you can claim. You may have to pay for meals and lodging while you are in a hospital or similar institution. Expenses you incur for your health can include prescription drugs, devices, and supplies that are related to your care. Other expenses may include fees for services and travel to the doctor’s office.
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