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Attendant Care or Care in an Establishment
Expenses paid to a nursing home, retirement home, group home, etc. may qualify as tax deductible medical expenses when a qualified person (a doctor) has certified that the patient requires specialized care either in writing or by completing Form T2201, Disability Tax Credit Certificate.
There are special rules that apply for taxpayers who have attendant care expenses but who are also eligible for the disability tax credit (DTC). Under most circumstances the following two situations apply:
A claim for the DTC and up to a maximum of $10,000 for attendant care
No disability amount claimed but a claim for the total eligible expenses paid for attendant care
For example: If the total eligible amount paid for attendant care is greater than the DTC plus the maximum $10,000 attendant care, it may be more beneficial to claim the full attendant care expense and not claim the disability amount. A calculation should be done to determine which option is best for you.
Only under special circumstances can both the disability amount and the full attendant care expenses be claimed. A full review of all rules is recommended.