One of the biggest concerns for families of seniors requiring
residential facility care, is how to make that care more
affordable. The federal and Ontario governments provide many tax
credits that can improve a family's cashflow by reducing the
costs of care. Here are some frequently asked questions we
often hear:
1. Are all costs of living in a retirement residence eligible
medical expenses?
Retirement home fees are broken down into two parts: the first
is the cost of accommodation, which is essentially the cost of
renting a unit in the residence. The second is the cost associated
with care such as nursing salaries, meal preparation, and
housekeeping. The institution will provide a receipt detailing the
breakdown. Only those fees relating to the cost of care are tax
deductible as eligible medical expenses. The accommodation charges
are generally eligible for the Ontario Trillium Benefit
(non-taxable monthly payment).
