The tax credit for home-support services for seniors: Changes in effect since January 2008

Further to the 2008-2009 Budget Speech presented in March 2008, changes have been made to the tax credit for home-support services for seniors. The changes are retroactive to January 1, 2008. 

Here are the principal changes:

  • The tax credit rate increases from 25% to 30% of the amount of eligible expenses.
  • The limit on the amount of eligible expenses increases from $15,000 to $15,600 per year. For a dependent senior, the limit is $21,600 per year.
  • The maximum tax credit granted is $4,680 per year (30% of $15,600). For a dependent senior, the maximum tax credit is $6,480 per year (30% of $21,600).
  • The tax credit is reduced where annual family income is more than $50,000.

Changes have also been made to the method for calculating the amount of eligible expenses for persons living in a senior citizens’ residence or an apartment building. In 2008, the amount of home-support expenses eligible for the tax credit is calculated mainly based on the cost of rent.

Note that other expenses incurred to obtain home-support services (such as housekeeping services) may also be eligible for the tax credit, even if those expenses are not included in the cost of rent.

For persons living in a house or condominium, no changes apply to the method for calculating the amount of eligible expenses.

For more information on the changes made to the tax credit, consult the following documents:

  • Overview of the Tax Credit for Home-Support Services for Seniors (folder IN-101-V) 
  • The Tax Credit for Home-Support Services for Seniors (brochure IN-102-V)
  • Application for Advance Payments Based on Rent and Services Included in Rent (form TPZ-1029.MD.7.P-V) 
  • Application for Advance Payments for Services Included in Condominium Fees (form TPZ-1029.MD.8.P-V) 
  • Application for Advance Payments for Occasional Services (form TPZ-1029.MD.9.P-V)

Article source: http://www.revenuquebec.ca/en/centre-information/actualite/2008/2008-06-03.aspx?rss=1