Maximizing Government Benefits for Seniors: Tax Credits and Caregiver Support
Knowing the true cost of home care and nursing homes is essential when trying to make the right decision for you or a loved one. Apart from pensions and other retirement income available, it’s important to know the various options seniors have in terms of government benefits. Some of these benefits focus on specific needs, but many are available to all seniors and aim to make aging at home more comfortable. Here’s an overview of many of these benefits.
How Can Seniors Get Financial Help?
There are several types of financial support available in Canada, including many government benefits for seniors. Some programs are offered on a national level, through the Canadian Revenue Agency (CRA), and some are offered at a provincial level, through the government of Quebec.
Government support comes in different forms. Some benefits are paid directly to the person, while others are offered as tax credits. Certain programs are automatic—you become eligible once you reach a specific age—while others require registration or must be claimed when filing your annual taxes. Below is an overview of the main benefits available to seniors.
- Tax Credit for Home-Support Services for Seniors
As part of Quebec government help for seniors, the Tax Credit for Home-Support Services is one of the most beneficial programs available. This provincial tax credit is for seniors aged 70 and over who incur expenses for home services. The credit covers part of the costs to make home care more accessible and affordable, up to a certain amount.
Eligible services and how expenses are calculated may vary depending on whether you are a renter or a homeowner. Be sure to keep all receipts and documentation to support your claim.
This tax credit for home support services for seniors can cover things like housekeeping, bathing assistance, nursing services, caregiving assistance, etc.
- Independent Living Tax Credit for Seniors
This refundable tax credit covers 20% of eligible expenses for purchasing or installing special equipment at home, after an initial $250 expense. This program can cover things like hearing aids, hospital beds, walkers and other equipment that can help a senior live more independently.
- Tax Credit for Severe and Prolonged Impairment in Mental or Physical Functions
This non-refundable credit is for individuals suffering from a severe and prolonged impairment, certified by a healthcare professional, expected to last or that has lasted at least 12 months. You may qualify if you meet one of the following conditions:
- Even with therapeutic care, devices, or medication, you are always or almost always unable to perform daily activities—such as seeing, walking, dressing, or feeding yourself—without taking an excessive amount of time.
- Due to chronic illness, receiving prescribed therapeutic care that is essential for maintaining vital functions at least twice a week, requiring at least 14 hours per week (including travel, medical visits, and recovery).
- Home Accessibility Tax Credit (HATC)
This is an interesting CRA senior assistance tax credit. It is non-refundable and can offers up to $3,000 in credit. It covers eligible expenses for home renovations or modifications to enhance access within the home, facilitate mobility, accomplish daily tasks, or reduce injury risks. Eligible expenses include permits, labour costs, permanent fixtures, equipment rentals, construction materials and professional services.
- Residential Adaptation Assistance Program (RAAP)
Beyond tax credits, the Residential Adaptation Assistance Program (RAAP), funded by the Société d’habitation du Québec (SHQ), provides financial aid for physical modifications, such as installing ramps or adapted showers, crucial for safety and accessibility.
Can You Get Financial Assistance for Being a Caregiver in Quebec?
Yes, there is financial assistance available for caregivers in Quebec. One option is the caregiver allowance in Canada, known as the Canada Caregiver Credit. This benefit applies to people supporting a spouse or common-law partner, as well as close relatives such as children, parents, grandparents, siblings, uncles, aunts, nieces, or nephews. It can be direct family members, or one of your spouses or common-law partners.
The CRA caregiver’s benefit amount depends on several factors, including your relationship to the person, your own financial situation, the income of the person you're supporting, and whether other credits are being claimed.
There’s also a family caregiver benefit for adults living with a senior – other than a spouse - to better support them. This benefit, called the Tax Credit for Caregivers, is offered by the government of Quebec.
As a caregiver, you can also benefit from family caregiver’s leave. Legally, an employer cannot penalize you for taking unpaid time off to take care of a parent, a grandparent, or a partner’s parent or grandparent. You can be absent for up to 16 weeks a year without a medical certificate, and up to 27 weeks with a medical certificate. There are also Employment Insurance caregiving benefits, which can provide financial support if you are eligible.
What Is the Disability Tax Credit, and Who Qualifies for It?
The disability tax credit is applied at the federal level and concerns people with disabilities or people supporting a loved one with a disability. To be eligible, the disability must cause severe impairment, even with the use of appropriate devices, therapy or medication. The claim is to be made by the person with the impairment. However, they can decide to transfer a part or the totality of the amount to a caregiver.
How Can You Maximize Government Benefits?
To maximize government benefits, it’s crucial to keep all the relevant bills and invoices throughout the year. In case of doubt, it’s always better to keep the bill. You can always throw it away once you are sure you can’t use it for your tax assessment.
Don’t hesitate to consult a professional, such as an accountant or a local organization. With so many programs and conditions, it can be difficult to know exactly what you’re eligible to claim.
Planning ahead is also key to maximizing government benefits. For example, you can schedule home care expenses in line with tax credit limits to make the most of available savings each year.
Taking things a step further, it’s always wise to set aside extra savings for the future. Whether for you or a loved one, early planning for retirement and long-term care is a smart move. You can also consider any pre-existing conditions or hereditary illnesses, which can help you prepare both financially and in terms of future care needs.
Tax credits and subsidies for home care offer significant financial aid, allowing seniors to live with dignity and security in the comfort of their homes. By leveraging this aid, families can significantly reduce the economic burden of home care while ensuring their loved ones receive the services they need. For those exploring home care options, tax credits and subsidies are more than just financial aid: they are essential to enhancing the quality of life and promoting independence for our seniors.