Ontario Seniors Care At Home Tax Credit - year of death

[ontrariomedical]

The Ontario Seniors Care at Home Tax Credit provides up to 25% of claimable medical expenses up to $6,000, for a maximum credit of $1,500. This amount is reduced by 5% of family net income over $35,000 and fully phased out by at most $65,000.

My questions are -

1) for a married couple in the year of death what is the definition of "family income"?

2) Assuming in 1 - both are effectively treated individually - then can a decreased spouse claim?  

Re # 1 - I know that for the surviving spouse family income is calculated on their own income only for Ontario property tax and GST credits... but can you clarify how the decease spouse should be treated? 

When I entered information in U File - and given the very high medical expenses in year of death with a portion claimed by each spouse...  U file was set up to claim the Ontario Seniors Care at Home Tax Credit for both on an individual basis. This is with "family income" being their individual income only both were eligible and UFile produced returns this way. 

However now that Notice of Assessment has been received, the claim for the surviving spouse was accepted, but the claim for the deceased spouse was rejected. Unfortunately there was no explanation from CRA and not sure if I should file a notice of objection. 

I looked up the eligibility for the credit in legislation. 

"1. The individual is resident in Ontario on the last day of the year.

2. Any of the following conditions are satisfied:

i. The individual is at least 69 years of age on December 31 of the calendar year preceding the taxation year.

ii. On December 31 of the calendar year in which the taxation year ends, the individual has a spouse or common-law partner who, on that date, was at least 70 years of age.

iii. The individual had a spouse or common-law partner who died in the taxation year and that spouse or common-law partner was at least 69 years of age on December 31 of the calendar year preceding the taxation year. 2022, c. 17, Sched. 5, s. 5."

From the above would the interpretation be - the deceased spouse was not resident in Ontario on the last day of the year becuase they were deceased? 

and presumably this is why 2iii exists to allow the surviving spouse to claim. 

Is this ultimately why the claim for the deceased spouse was denied.... and if yes it appears UFile was not programmed correctly for this issue. 

Appreciate any comments which could support claim being eligible for a possible notice of objection or confirmation from UFile that CRA is indeed correct and ufile will be updated accordingly. 

Thank-you,

 

[Geo123]

Hello ontrariomedical,

UFIle has been correctly programmed.  Please see below >>.

1) for a married couple in the year of death what is the definition of "family income"?

>>As calculated on ON 479 - Ontario Credits :

Enter your net income from line 23600 of your return.  Line 7
Your spouse's or common-law partner's net income from line 23600 of their return (if applicable) Line 8

Line 7 plus line 8 =    Line 9
Base amount  -35,000
 

2) Assuming in 1 - both are effectively treated individually - then can a decreased spouse claim?  

>>Yes, including a situation where Deceased was 70 in 2022 and Surviving Spouse not 70.

“If you had a spouse or common-law partner who died before December 31, 2022, and who was 69 years of age or older on December 31, 2021, you can claim this credit regardless of your age, if you meet all of the other conditions above. In that situation, do not include their net income in the calculation of your family's net income (line 8 of Form ON479). If your spouse or common-law partner died on December 31, 2022, include their net income in the calculation of your family's net income.

If you are preparing a return for a resident of Ontario who died in 2022 and who was 69 years of age or older on December 31, 2021, you can claim this credit on their final return if they meet all of the other conditions above. In that situation, do not include the surviving spouse's or common-law partner's net income in the calculation of the deceased's family's net income (line 8 of Form ON479), unless the person died on December 31, 2022.”
 

From the above would the interpretation be - the deceased spouse was not resident in Ontario on the last day of the year becuase they were deceased? 

>> Deceased Spouse was resident as per below.

End of the year means any of the following dates:

    December 31, 2022, if you were a resident of Ontario on that date

    the date you left Canada if you emigrated in 2022

    the date of death for a resident of Ontario who died in 2022 < - - - Date of death and not end of calendar year

https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/ontario/5006-pc/information-residents-ontario.html#senior-care

[ontrariomedical]

Thank-you for the reply. 

Any idea why CRA rejected the claim? There was no explanation on the notice of assessment. 

I guess on this note I should file an notice of objection?

[Geo123]

Hello ontrariomedical,

You are welcome.  It would be best to contact CRA directly for more information.