Primary Caregiver Tax Credit (PCG-TC) Manitoba Home Care Program (MHCP) Q&A: QUESTIONS FROM GENERAL PUBLIC 1. What is the Primary Caregiver Tax Credit? The Primary Caregiver Tax Credit is an annual, refundable tax credit that can be claimed by a caregiver who is providing ongoing voluntary care to a family, friend or neighbour, verified through the Home Care program and assessed either by the regional health authority (RHA) or a Health Care Professional (e.g. Nurse, Social Worker, Occupational Therapist, Physiotherapist or a Physician) acceptable to the RHA, as requiring Level of Care 2, 3 or 4. The caregiver can claim up to $1,020 / year/client for up to three clients. The application is completed once unless there is a three year absence from care giving.
2. Where and how can I apply?
Application forms are available on the provincial government’s web site at www.manitoba.ca, from regional health authorities (RHAs), and from Manitoba Health and Healthy Living (MHHL).
For a caregiver to be eligible, he or she must first be identified by the person receiving care. The tax credit application must be filled out jointly by both the caregiver and the person receiving care and then forwarded to the regional health authority. The caregiver doesn’t have to wait for these forms to be completed or approved before beginning to provide care, as long as the start date is identified. If the RHA verifies that the care recipient is Level 2 or higher, the caregiver will be given a log book and other information that is needed to claim the tax credit.
3. How do I know if I qualify for this benefit?
If you are the primary caregiver for more than a three-month period for the same person in a tax year, you may qualify for the Primary Caregiver Tax Credit. There are no restrictions related to the caregiver’s relationship to the individual or employment status. The person receiving care must live in a private home or apartment in Manitoba and require Level of Care 2, 3, or 4. The client must also designate his or her primary caregiver for the purpose of this tax credit. The caregiver must not be paid for his or her services and be eligible to receive Manitoba tax credits.
4. I care for my spouse at home. Am I eligible for the tax credit? Yes, if your spouse requires Care Level 2, 3, or 4. You must also be designated by your spouse as the primary caregiver in his/her care plan. 5. I care for a neighbour. Am I eligible for the tax credit? Yes, if your neighbour requires Care Level 2, 3, or 4. You must be designated as the primary caregiver in your neighbour’s care plan.
– page 1 of 4 2008-06-10 6. I have been caring for an eligible Home Care client as the designated primary caregiver for several years. How soon can I start collecting the tax credit? The three-month qualifying period started on October 1, 2008. The tax credit can then be accrued starting in January 2009. 7. I have been caring for someone who needs a significant amount of nursing care. However, we do not require in-home services from Home Care, and have not contacted them. Can I become eligible for this credit?
The tax credit builds on Manitoba’s Home Care Program, but in some circumstances you may be eligible for the Tax Credit even if you are caring for a person who doesn’t receive direct home care services. You may contact your regional health authority to determine whether an assessment is required.
8. How would I receive the benefit? When filing your 2009 income tax return, caregivers can report the period of time during the tax year during which they were the primary caregiver for purposes of the tax credit on Form MB479. This credit is first used to reduce your income tax. If you owe little or no income tax, the Government of Manitoba still refunds the benefit to you through the income tax refund. 9. What proof do I need? Caregivers need to consent to the release of some information, including name, caregiver status, social insurance number and mailing address. They will be provided with a log (similar to a log of business use of a vehicle) to keep care giving records that will note any interruptions or periods where care was not provided. The logs must be kept by the caregiver in the event of auditing in the future.
10. What is the maximum benefit? Eligible caregivers can receive a maximum tax benefit of $1,020 per year for the care of one person. Caregivers can be designated by up to three people at any time and claim the tax credit for each of these individuals.
11. I am the primary caregiver for a Home Care client. I live on a low income and I don’t have to pay any income taxes. Can I benefit from this tax credit? Yes. Even if you owe no taxes, you will receive this credit as a refund when you file your income tax return.
12. I receive Income Assistance. Can I benefit from this tax credit, and will I be able to retain all of it? Yes. Even if you are on Income Assistance you may earn this credit and receive it when you file your income tax return.
– page 2 of 4 2008-06-10 13. I regularly care for someone who is in and out of hospital frequently. They don’t need help when they are at home, but when they are in the hospital I provide special food, help feed them, read to them, and bring them whatever they need. Can I claim the tax credit? This tax credit is intended to help Manitoba Home Care clients live in their homes and communities for as long as possible. As a result, the tax credit is only available for caregivers who provide support to the client while he or she is living at home. Caregivers are required to record and report any absences of more than 14 consecutive days.
14. I am a Home Care client and I pay someone to help me between visits from home care staff. Can this person claim the tax credit? Only unpaid caregivers are eligible for this tax credit.
15. If I look after more than one person during the year, can I earn the tax credit for more than one? Yes. A designated caregiver can claim this tax credit for a maximum of three clients. However, the three-month qualifying period must be completed for each client.
16. I provide care to my mother who lives with me and currently claim the federal and provincial “Caregiver Amount” tax credit on my income tax return. Does the new tax credit affect my Caregiver Amount tax credit? No. You can now receive both credits because the two programs have separate eligibility criteria.
17. What is the purpose of omitting those who care for Level 1 Home Care clients? The tax credit is intended to support caregivers who work with clients who require more intensive forms of assistance. The intent is to help these individuals - who might otherwise have to move to a personal care home or be hospitalized – live successfully independently for as long as possible.
18. Will I still receive the tax credit when the person I am caring for moves into a group home, Supportive Housing or a Personal Care Home? The tax credit is only available to caregivers caring for individuals who are living at home or in Supportive Housing. 19. What happens when a client is not able to designate a primary care giver? An alternate signatory must sign on the client’s behalf, not the caregiver.
20. What kinds of care needs are considered to be Level 2, 3 or 4?
– page 3 of 4 2008-06-10 Levels 2, 3 and 4 mean that the person requires care and assistance on a daily basis in at least three of the following categories due to significant physical, cognitive or behavioral barriers: Assistance or supervision with routine activities like shopping, meal preparation, laundry, or transportation Assistance or supervision with personal care tasks like bathing, eating, grooming and hygiene, dressing and medication Arranging for supports and community access like recreational activities, support groups, counseling, or medical appointments Requiring regular and sustained advice, assistance in decision- making or emotional support
21. Where will information regarding caregivers be stored? The RHAs will keep a copy of the application once it is completed. A copy will be provided to the caregiver and a copy to the client. A copy will be forwarded from the RHA to a central location within Manitoba Health & Healthy Living, 2nd floor, 300 Carlton Street for auditing purposes.
22. Where can I get more information? Manitoba Finance is preparing a Primary Caregiver’s Log with instructions on how to document and claim this credit. The log will be made available to caregivers who are eligible for the credit.
More information about the Primary Caregiver Tax Credit is available online at www.gov.mb.ca/finance/, by calling Manitoba Government Inquiry at 1-866- 626-4862 or emailing Manitoba Health and Healthy Living at [email protected]. Program details for caregivers and their clients will be distributed through Manitoba Health and Healthy Living and regional health authorities. For information on claiming this tax credit through the income tax system, contact the Manitoba Tax Assistance Office at 204-948-2115 or 1-800- 782-0771 (toll-free) or by email at [email protected].
– page 4 of 4 2008-06-10