Tax Breaks Help Reduce Eldercare Expenses

There are several tax breaks that may be available to help ease the financial burden of eldercare.

Home Renovation Tax Credit:
This is a temporary tax credit for renovation work performed or materials acquired before February 1, 2010.  You can claim a 15% credit on eligible renovation expenses exceeding $1,000, but not more than $10,000, to a maximum tax credit of $1,350.

Medical Expense Tax Credit:
You can claim the eligible medical expenses you paid on behalf of a dependent parent in excess of the lesser of $2,011 or 3% of your parent's net income, up to a maximum of $10,000 per dependent.  Renovation costs you incur to accommodate your parents qualify as an eligible medical expense, so they may generate tax savings under both the home renovation tax credit and medical expense tax credit.

Caregiver Tax Credit:
If you provide home care for a parent age 65 or older in 2009, you can claim the caregiver amount of $4,198, provided your parent's income is $14,336 or less.  Your claim is reduced when income exceeds this threshold, and is ineligible if your parent has income of $18,534 or more.

Attendant Care Expenses:
If your parent is eligible for the disability amount under the Income Tax Act, or a doctor has certified that your parent needs a full-time attendant, amounts that you pay for such an attendant will qualify for the medical expense tax credit.