Please see the attached for more information from the Canada Revenue Agency regarding providing support in your home as a profession and the tax rules associated. Thanks to Margaret from COPCS for passing this along.
22 04 14 update:
9 Replies to “CRA Information for Home Share Providers”
do home share providers need to report home share payments on their taxes?
Hi Candice – thanks for your inquiry. There’s a piece of Canadian tax law that keeps this payment tax free. As a consequence, my understanding is that the income doesn’t need to be claimed on a person’s taxes. However, we’re not accountants which would necessitate all home share providers to consult with their accountant if they have any questions.
The underlined URL for CRA Info won’t open for me. Is there a update to this post?
Hi there! We have updated the post with a link to further information. Thanks.
Candice – see paragraph 81 (1) (h)
(h) where the taxpayer is an individual (other than a trust), a social assistance payment (other than a prescribed payment) ordinarily made on the basis of a means, needs or income test under a program provided for by an Act of Parliament or a law of a province, to the extent that it is received directly or indirectly by the taxpayer for the benefit of another individual (other than the taxpayer’s spouse or common-law partner or a person who is related to the taxpayer or to the taxpayer’s spouse or common-law partner), if
(i) no family allowance under the Family Allowances Act or any similar allowance under a law of a province that provides for payment of an allowance similar to the family allowance provided under that Act is payable in respect of the other individual for the period in respect of which the social assistance payment is made, and
(ii) the other individual resides in the taxpayer’s principal place of residence, or the taxpayer’s principal place of residence is maintained for use as the residence of that other individual, throughout the period referred to in subparagraph 81(1)(h)(i);
Marginal note:Social assistance for informal care programs
(h.1) if the taxpayer is an individual (other than a trust), a social assistance payment ordinarily made on the basis of a means, needs or income test provided for under a program of the Government of Canada or the government of a province, to the extent that it is received directly or indirectly by the taxpayer for the benefit of a particular individual, if
(i) payments to recipients under the program are made for the care and upbringing, on a temporary basis, of another individual in need of protection,
(ii) the particular individual is a child of the taxpayer because of paragraph 252(1)(b) (or would be a child of the taxpayer because of that paragraph if the taxpayer did not receive payments under the program), and
(iii) no special allowance under the Children’s Special Allowances Act is payable in respect of the particular individual for the period in respect of which the social assistance payment is made;
Which provinces allow a homeshare provider to have more than 2 client, multiple homes and be able to hire Support workers?
As we only work in BC, we’re not sure about other provinces. With regard to more than 2 people living in your home, I would consult with your local health authority to see if licensing is required under your province’s health act. With regard to multiple homes, it wouldn’t be home share as the support provided wouldn’t be in your family home.
Hope that helps,
Hi, I am a home share provider sister. I take care of my brother and have a home share contract. I’ve heard I need to file as Self Employed but some friends who are family home share providers have filed as Other Income, not paying into Canadian Pension Plan however not able to claim expenses other than medical. Can someone clarify please how to I file my return? Also, how can I find out if I can claim part of the home rental as an expense, space in the living room for him and my bother’s bathroom, the hallway where his wheelchair is parked, etc. I guess his bedroom can’t be claimed as an expense because of the Room portion of the PWD monthly benefit, in BC What about heating? (our rental is all electric) Additional groceries? Thanks.
Thank you for your questions. For answers to your questions, the best person to consult would be your accountant in this case as they would be the experts on this.