February / March 2017 Tax Time

Topic of The Month - It's Tax Time

Be sure to take advantage of the available tax benefits. Do not assume that you will not qualify. Check it out. Many of these benefits can be claimed for past years as well so don't despair if you did not put them on this year's claim. Click on the links for detailed information.

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Primary Caregiver Tax Credit | Manitoba

- $1,400 Refundable
A refundable credit of up to $1,400 a year to people who act as primary caregivers for spouses, relatives, neighbours or friends who live at home in Manitoba. Note: "At home" means any facility not supported by government funding.

Forms and detailed information are available on the 
Manitoba Government website: Primary Caregiver Tax Credit  

Questions? Manitoba Tax Assistance Office
Email questions to: TAO@gov.mb.ca  
Use email so you can save a hard copy of the response.

TIP: Don't be scared off by the Caregiver Log. Just list the tasks you do. Here are some examples:

  • Driving to doctor appointments or other services
  • Arranging or preparing meals
  • Grocery shopping
  • Assisting with home maintenance, repairs or yard work
  • Providing personal care (bathing, dressing, feeding)
  • Completing forms or documents (legal, insurance)
  • Assisting with bill payment
  • Housekeeping tasks (cleaning, laundry)
  • Assisting with medications (setup, dosing)

Disability Tax Credit | Canada

This is a federal government tax credit for people with disabilities. 

CAUTION: Do NOT hire a consultant to help complete the form or claim this tax credit.

You must apply and be approved by a doctor (or other approved health professional). The doctor may charge a tax deductible fee of $100 or less to complete the form. If anyone offers to help you for a much larger fee, say no thanks.

You must apply and be approved Savings - as much as $1,165 a year Allows for important medical expense claims such as attendant care expenses paid to a retirement home. (This can significantly reduce the rent.)

Eligibility - The descriptions are very confusing but in a nutshell.
Eligible applicants have one or more severe and prolonged impairments in physical or mental functions. 
Applicants must be:
Markedly impaired in one or more functions.
Significantly impaired in one or more functions with a combination of other less severe impairments. 

1. Physical Functions
  • vision
  • feeding or dressing oneself
  • speaking or hearing impairment
  • eliminating (bowel or bladder functions) 
  • walking
2. Mental Functions
  • memory
  • problem solving, goal-setting and judgement (taken together) 
  • adaptive functioning (includes those abilities related to self-care, health and safety, social skills and common simple transactions) 

Eligible Medical Expenses – save all receipts

Tip: Take 5 minutes to read the complete list on the Canada Revenue site. Did you know that incontinence products (Depends) are an eligible medical expense? 

There are significant exemptions for those who are approved for the disability tax credit. Almost 50% of the monthly fees at a retirement home are attendant care expenses. These are an eligible medical expense.  The cost of moving to a more accessible housing is covered up to $2000.
  • Attendant care expenses paid to a retirement home
  • Hearing aids or personal assistive listening devices including repairs and batteries.
  • Certificates - the amount paid to a medical practitioner for completing and providing  additional information in regard to Form T2201, Disability Tax Credit Certificate and other certificates.
  • Diapers or disposable briefs for a person who is incontinent 
  • Foot Care
  • and many more...

      CPP Death Benefit

      The maximum amount of this benefit is $2500. Be aware that it is taxable and keep back $1000 to pay the tax in the following year.

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