I have a client who’s mother was placed in a Personal Care Home (PCH) at the end of 2018. The mother has a valid DTC on file with CRA and the son is also listed by CRA as being able to claim the unused amounts. The mother lived with the son prior to moving to the PCH. Now in a PCH, the son still looks after paying her bills, picks up clothing for her, and bringing her supplies as required. The son also makes many medical decisions on her behalf as the mom is not sound of mind. Thanks to a correction by Service Canada on the mom’s Guaranteed Income Supplement in 2020, mom’s income is too high for the son to claim the Canada Caregiver Credit.
My question is three fold:
- The covid epidemic resulted in decreased ability to visit with his mom this year due to strict lockdowns at PCH’s in Manitoba. Would the son still be eligible to claim the DTC transfer from his mom? Mostly, he paid her monthly bills, and made necessary decisions about her care mostly done by phone during the lockdown.
- I used Profile until this tax season. Profile allowed me to claim the Personal Tax Credit on the MB479 Manitoba Credits form for the mom, whereas TaxCycle does not. I’m guessing it’s not allowed because the rules on separate principal residences are applicable to the spouse but not for a dependant receiving the unused DTC, as in this scenario. Is this reasoning correct?
- Has anyone had a Manitoba case where the dependant in the PCH claimed the original home on their tax return vs claiming the Rent in the PCH. ie: being separate for medical reasons, the original home would still be considered the Principal Residence vs the PCH. In my client’s case, the mom’s income is too low so pays no taxes, thus claiming the PCH as a medical expense is not applicable. The son would prefer the mom to claim the house property taxes because his income is too high and doesn’t qualify to claim Manitoba Credits. Additionally, the mom qualifies to claim the Seniors’ School Tax Rebate and often also qualifies for the 55+ School Tax Credit for Homeowners. The home is jointly owned between the son and mom. While she was living at her home, the mom always paid the Property Taxes and thus claimed it on her taxes. My own understanding would be that the mom should be claiming the Nursing Home Rent, since that is where she is living, and is now paying. She no longer pays the house Property Taxes.
Curious on other people’s ideas on this before I phone Manitoba Tax Assistance Line for clarity (I usually phone them directly vs phoning CRA on Manitoba Tax or Manitoba Credit issues).