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Home Sharing Providers as Family Members
FAQs: What you need to know
A home sharing provider is an independent contractor who receives non-taxable income. The Canada Revenue agency outlines the rules about payment of home sharing fees and if it is taxable or non-taxable income.
Home sharing services funded through the Canada Revenue Agency. The Ministry of Social Development and Poverty Reduction (SDPR) provides the money they receive from CRA to Community Living British Columbia (CLBC). This funding is used to pay community living agencies (businesses) to provide services.
The Canada Revenue Agency (CRA) administers tax, benefits, and related programs for the Government of Canada and for most provinces and territories.
CRA’s rules: funds received directly or indirectly by the taxpayer (e.g. home sharing provider 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)
What this means is if you receive funding as a home sharing provider and you are family you will be required to claim it as taxable income on your tax return. This non-taxable income is for people providing arms-length services to people who are NOT your family member(s).
Family members may wish to access programs to help offset the costs for caring for a dependent family member:
The disability tax credit (DTC) is a non-refundable tax credit that helps people with disabilities, or their supporting family member, reduce the amount of income tax they may have to pay.
Do you support a spouse or common-law partner, or a dependant with a physical or mental impairment? The Canada caregiver credit is a non-refundable tax credit that may be available to you.
In addition to the CRA rules, CLBC has policy and each community living agency may also have rules about family member(s) providing services to their family members.
COMMUNITY LIVING BC POLICY
The policy below mentions that the proposal for provision of service by an immediate family member should consider many factors and “taxation considerations” is among them :
Service-Provision-by-Family-Members-Policy.pdf (communitylivingbc.ca)
6. PRACTICE
6.1 Proposals for service provision by family members or immediate family members should address the following: Is the proposal realistic and appropriate, and have potential risks such as the need for wellness support, impact on other family members, conflict of interest, potential health risks or taxation considerations to the family member providing service been considered by CLBC and the family member or immediate family member?
Useful Links
CRA Technical Bulletin
CLBC Family Member Policy
Family Care Givers of BC
Family Caregivers of BC (FCBC) is a provincial, not-for-profit organization that proudly and compassionately supports over one million people in British Columbia who provide physical and/or emotional care to a family member, friend, or neighbour.https://www.familycaregiversbc.ca/