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CC12
Returning Member

As per CRA, when a person is qualified for the disability tax credit, he can't claim nursing home exp as medical expense. Why does turbotax allow both at the same time?

TurboTax should advise the restriction when people claiming both DTC and nursing home expense on the same return.

3 Replies

As per CRA, when a person is qualified for the disability tax credit, he can't claim nursing home exp as medical expense. Why does turbotax allow both at the same time?

The rule for nursing homes and claiming the disability amount actually isn't that you cannot claim both. You can claim the disability amount and up to $10,000 worth of salaries and wages for attendant care. If the cost of attendant care is more than $10,000 then you can choose the solution that's best based on the options presented in this chart from the CRA: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expe...

When you enter more than $10,000 in medical expenses and a disability amount claim, a warning does populate in the review section of TurboTax. When you click the Review option (screenshot attached), the full information on choosing which option is better for you is given along with the steps to edit.

reddog95
New Member

As per CRA, when a person is qualified for the disability tax credit, he can't claim nursing home exp as medical expense. Why does turbotax allow both at the same time?

I'm preparing a 2019 for my elderly aunt. She has a T2201 and pays $100k for nursing home accommodation so  it is clearly better to claim the medical expenses than the disability tax credit, which I have always done in the past (in TaxPrep - I'm in the industry so have access to it, but am trying to keep my personal returns outside the firm this year). I followed the review notes and can't figure out how to switch off the DTC, and can't override it to zero. In TaxPrep this is a check-box - what is the equivalent in TurboTax?

 

Thanks

TurboTaxHeba
Intuit Alumni

As per CRA, when a person is qualified for the disability tax credit, he can't claim nursing home exp as medical expense. Why does turbotax allow both at the same time?

If you are using TurboTax Desktop/Download, you will have to answer Yes to the "Are you disabled" in the information profile.

Under the medical profile, enter the nursing home expenses as medical expenses.

Under the Disability amount profile, answer Yes for physical infirmity, and No for the 12 months period impairment question > this will eliminate the disability amount.

 

 

If you are using TurboTax Online, go to the Disability Credit profile and answer No to the claim of the disability amount.

 

 

 

 

I hope this was helpful