Nursing Home Fees and Disability Tax Credit Reporting

[IFradsham]

According to https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expe..., I cannot claim both nursing home fees and the disability tax credit.   I do have the form T2201 filled out, filed and approved by the CRA.    How can I claim the nursing home fees as a medical expense and identify I have a valid T2201, but not claim the disabilty tax credit in Turbotax?  If I identify that I am eligible it appears that Turbotax automatically claims the DTC amount, but that isn't allowed according to https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expe....

Thanks.

@https://turbotax.community.intuit.ca/turbotax-support/en-ca/help-article/medical-tax-credits-deductions/claim-disability-tax-credit/L56eg1NH5_CA_en_CA?uid=leoledim

[TurboTaxGinette]

Deselecting the disability amount information does not indicate to CRA that you are no longer disabled. It's purely for the software's use. In order to claim the attendant care amount over $10,000, you must remove the disability amount. You're still eligible for the associated medical expenses.

As per our TurboTax FAQ How to Deduct Your Medical Expenses 

Medical expenses for persons with disability

If you have a T2201 form approved with CRA, you will be able to claim the Disability Tax Credit (DTC) as well as all medical expenses which are eligible for people with prolonged medical conditions only. With this credit claimed, you will be limited to these medical expenses:

·       The cost of attendance care in excess of $10,000

·       The cost of a group home

It is beneficial to calculate the refund you will get on your medical expenses with and without claiming the DTC to choose the best option to lower your tax liability.

Thank you for choosing TurboTax.

[sguta]

As a turbo tax user, I have just encountered this same situation with entering information for my mother.  I SHOULDN'T HAVE TO know whether I am allowed the two amounts....this is something that TurboTax should prompt the user to consider.  How is the user supposed to know that they SHOULDN'T  indicate that the taxpayer is entitled to the disability tax credit during the questioning stage?  Your tax software should have a caution prompt to the user that both the disability tax credit and nursing home costs cannot be claimed.  This response assumes everyone should know this (which everyone doesn't--Turbo Tax help centre staff couldn't explain why this happens.)  I'm fortunate to know that both can't be claimed and looked at the T1 General Return and saw both the disability tax credit and the entire nursing home costs were claimed.  Shame on Turbo Tax for not correcting this (again) in the 2023 version.  Previous versions had the same problems and even though they've been made aware of this, nothing has changed.  Your software is supposed to be accurate....WHICH IT IS NOT!

[sguta]

Turbo TaxGinette:  I just posted a response and then reread your response (by the TurboTax adviser) to the original poster.  Your response is INCORRECT.  You cannot claim the disability tax credit AND the fees for full time care in a nursing home: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065/medical-expe....

[TurboTaxGinette]

The response above does not say to include the fees for the nursing home but the other eligible medical expenses for full-time care wages/salary, as allowed and seen in the Canada Revenue Agency link you shared. These are two separate fees.

Thank you for choosing TurboTax.