Funding for Seniors Care in Denver metro Area
Elder care can be expensive and you should plan your finances accordingly to avoid an unnecessary tax burden. Assess the annual income of the person you care for, including pensions and social insurance benefits. Subtract this income from the amount of $ 40,000 to approximate the portion of the annual cost of elder care to be paid from other sources. Then make the total of the investments and savings of that person. Divide this figure by the annual cost of elder care that must come from other sources to obtain an estimate of the number of years of care that this money will provide.
You can make a maximum donation of $ 13,000 per year without having to complete a tax return on donations. If you are married, your couple can give up to $ 26,000. However, medical expenses you pay on behalf of another person are not part of the donations. You can give the full amount you are entitled to, in addition to paying for these medical expenses. You should check the specific requirements with an accountant or financial advisor.
If you lend money to the person you care for, that money is not taxable for that person. However, in order for this loan to be valid, it must be repayable, together with interest, if the amount exceeds $ 10,000. The CRA specifies the interest rate applicable to family loans.
You may be able to claim the caregiver tax credit if you (alone or with another person) act as a caregiver and maintain a home, where you live with one or more of your parents or Of your grandparents over the age of 65, or of your spouse. You may also be able to claim tax deductions for the medical expenses of family members you paid. For more information on the tax credits to which you are entitled if you are paying for the medical expenses of your parents or grandparents, see Tax and Benefit Information for seniors.
If an elderly person has a home that is fully paid or has a low mortgage, they can get a reverse mortgage. The lender pays the homeowner a monthly payment based on the value of the home. These payments reduce the net worth of the house. The bank is then reimbursed, including interest, at the time of sale of the house.
Old Age Security
The Old Age Security program is the cornerstone of Canada's retirement income system. It is designed to supplement the incomes of Canadian seniors with a modest pension. Benefits include the Old Age Security Basic Pension, the Guaranteed Income Supplement (GIS) and the Spouse's Allowance. This program is funded by the Government of Canada's tax revenues.
How it works
The basic Old Age Security pension is not based on an individual's income or employment history. It is taxable, fully indexed and adjusted quarterly in line with inflation. Payments are monthly.
When am I eligible?
Canadian seniors can start receiving Old Age Security at age 65 if they have been living in Canada for at least 10 years. Low-income seniors may be eligible for other benefits as early as age 60. You must apply for Old Age Security because it is not paid automatically.