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Level 2
posted Mar 23, 2023 10:53:07 AM

PC/Desktop Turbotax Incorrectly Applies Ontario Seniors Care at Home Credit when address is specified as a LTC Facility

In the PC Desktop version of Turbotax, the Ontario Seniors Care at Home Credit is being incorrectly applied - when the residence is specified as a LTC facility.  On Form ON479 Turbotax automatically fills in the Medical Expenses from the Medical Expenses Worksheet and calculates a $1500 credit which does not apply for residents in LTC facilities.   

 

The previous answers to this question only apply to the Online version of Turbotax.   Does not appear to be a way to override this calculation on ON479 or deselect this credit. How do you turn this off in the Desktop Version of the software?

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4 Replies
Level 1
Mar 29, 2023 6:19:54 PM

yes, ihave this exact problem too, the PC/desktop version program does not let us opt out of this. i can not believe that this credit is available to a senior living in a long term care home.  PLEASE TURBOTAX ADDRESS THIS ISSUE SOON AS DEADLINE IS APPROACHING!!

Level 2
Mar 29, 2023 7:19:57 PM

I suspect that many people have had this deduction automatically applied in TurboTax and have already filed not noticing a few extra bucks back from this Tax Credit (depending on the amount of medical expenses).

 

It seems odd that both TurboTax and Ufile (I saw a post from a UFile user who raised the same issue)  automatically apply this deduction for addresses specified as LTC facilities - I would be surprised if both companies got this wrong (and it has not been corrected by now) since they get a lot more detailed tax legislation information in order to update new deduction each year.

 

It this is an error,  it should have been quickly corrected given the approaching tax deadlines.   But it is possible that this is not an error.   In this case, many people may be losing money on their returns if they followed the advice posted on this forum (and a few others) to turn this credit off in the on-line version.  All the articles I have read on this credit didn't know anything more than what is already posted on the Ontario Ministry of Finance site - which has some contradictions. 

 

If I base my decision on the original intent of this program - i.e. to keep seniors longer in their homes, then a LTC facility would obviously not qualify.  However, if I base my decision solely on the Eligibility Requirements posted on the Ontario Ministry of Finance site, those in seniors homes or LTCs would meet the posted Eligibility Requirements.  More recent comments on other sites indicated that the government also wanted to use this program to get more $ into the hands of low income tax payers who typically pay little or no tax where the Ontario Medical Tax credit doesn't really help them.  This credit will give low income tax payers money back against their medical expenses even if they pay no tax to help them with their medical expenses - regardless of where you live. (TBD)

 

I have documented the contradictions on the Ontario site and how it is being applied by tax preparation software and I am awaiting a response from the Ontario Ministry of Finance to clarify.   Once I hear back I will post the response - BUT where are the TurboTax people in this forum who would know the answer based on the tax legislation provided to TurboTax and those who were responsible for programming in the changes for 2022?

Level 2
Mar 30, 2023 12:52:14 PM

I received an answer from my query to the Ontario Ministry of Finance.  There  was some confusion caused by Eligibility Requirements appearing to contradict one of the benefits of the program (i.e. to assist low income seniors to remain in their homes).  However,  anyone who meets the age requirements and income vs. allowable medical expenses, etc. can claim this deduction regardless of what type of housing they live in (in Ontario) - including LTC Facilities.  The automatic TurboTax calculation (for those who qualify) is therefore correct for those living in an LTC Facility.  I would suggest that anyone living in an LTC Facility who automatically qualified for this Tax Credit in TurboTax (based on age, income vs. medical expenses) and turned this Credit off in the on-line version because they thought an LTC was not covered  should re-visit their Tax Return. 

Level 1
Mar 30, 2023 1:43:42 PM

Awesome news Steve! Would you be able to send me or post the reply from the Ministry, it would help to prove to ‘people I know’ will question. Also, it would be nice to still hear from Turbo Tax on this. Kind of complete the loop if you will.

Again, to Steve, great job tracking this down .

larlyn