How to look out for Mom and Dad
As a loved ones level of independence declines care needs and costs rise, creating difficult choices. Medical costs ramp up with the passing years – and most are expensive. Many of these costs are claimable as a medical expense at tax filing. However, to be claim eligible some of these expenses require confirmed eligibility for the disability tax credit. That requires pre-assessment by CRA via a report from a doctor. That application form and its rules and regulations are complex so it’s vital to get counsel with an expert (unfortunately not many skilled professionals out there).
As well there are potentially retroactive recoveries of tax paid in prior filed tax returns where the ramifications of the disability tax credit were not considered. Find someone (like DTS) who will review DTC eligibility for free and ensure Mom or Dad or both have gained all eligible tax savings. Nobody likes paying more tax than they should, and that goes double for the elders that built this country!
Mike Campagne CFP, BA **
** The views and content are those of the author and the article is not to be construed as financial advice, but rather as general information. Please contact your health care provider to determine specific potential government health care supports to you or family members. Always consult a tax professional in determining the optimal way for you to file your 2018 tax return in regard to relevant tax credits and deductions. Due to the differences in provincial health care rules and regulations, DTS serves elderly clients only in British Columbia.