It is of the utmost importance that we make our homes accessible in order to preserve our autonomy, as well as our health and well-being. Unfortuitously, making our homes into safe spaces still comes with a price tag attached to it. We’ve produced a list below of the many tax credits that are available to help alleviate some of the costs.
Credit for Taxes Paid on a Home’s Accessibility (HATC)
Those who make improvements to their homes in order to make them more accessible and safer are eligible for this tax credit from the federal government. People who are at least 65 years old at the end of the year are eligible for the Home Accessibility Tax Credit (also known as the HATC). This credit is also available to people who have disabilities and are eligible for the disability tax credit. The HATC can be applied to a maximum of $10,000 annually in total eligible expenses, which results in a maximum tax credit of $1,500 ($10,000 multiplied by 15%). When you file your annual tax return, you can submit a claim for the HATC; therefore, you should make sure to keep all of your receipts.
A change that is both of a permanent nature and an essential component of the qualified dwelling can be considered a qualifying renovation (including the land that forms part of the eligible dwelling).
The following are some examples that ought to qualify:
- Bars to hold on to and safety rails
- The cost of installing a roll-in shower, accessible shower, or tub in place of a bathtub is reduced.
- Walk-in or step-in bathtubs both available.
- Wheelchair lifts
- Flooring that does not slip or other anti-slip treatments
- Making the switch to knobs or faucets with lever designs
- Widening your doorways
- Prices paid for the work of professionals
- Construction permits as well as building layouts and designs
- Components and supplies for construction
- Outdoor or indoor ramps
- Cabinets in the kitchen and bathroom can be lowered so that the user can access them.
- Equipment rentals and more
You may find additional information on eligibility, qualifying renovations, and filing for the HATC here from the Government of Canada, where you can also read more about the HATC.
Medical Expense Tax Credit (METC)
You might have a tax-deductible home improvement project on your hands that also counts as a medical expense. If this is the case, you may be eligible to claim the federal Medical Expense Tax Credit (METC) as well as the home accessibility tax credit (HATC). The expenditures of remodelling a home so that it is accessible to someone who uses a wheelchair may be considered medical expenses; however, other sorts of expenses related to impairments may also be considered medically necessary. Always be sure to save your receipts and any other papers that may be needed to support your claim.
The Ontario Seniors’ Home Safety Tax Credit for the Tax Years 2021 and 2022 (Ontario)
You’ll be able to stay in your home for a longer period of time thanks to the Seniors’ Home Safety Tax Credit, which will assist you in making your home more accessible and secure. This credit can be applied toward the following:
- Seniors who will have reached the age of 65 by the year’s end 2021
- People who share their homes with elderly relatives
The amount of the Seniors’ Home Safety Tax Credit is equal to 25% of up to $10,000 in qualified expenses incurred by a senior citizen in Ontario for their primary residence. The credit can go up to a maximum of $2500. You can make a claim for the credit on the Income Tax and Benefit Return that you file in 2021.
If you are 65 or older, you may be eligible to claim not just the Home Improvement Tax Credit (HETC), but also the Medicare Eligibility Tax Credit (METC), and the Seniors’ Home Safety Tax Credit (SHSC) for the same renovation or accessibility modifications! We strongly suggest that you discuss this matter with either your financial planner or your accountant.
The Credit for People with Disabilities (DTC)
The credit for taxpayers with disabilities, often known as the DTC, is a tax credit that does not have to be repaid and can help people with disabilities and the people who care for them pay a lower overall amount of income tax. Once a person has established that they are qualified for the DTC, they are able to make a claim for the disability amount. At the conclusion of the year, this sum takes into account an additional payment for people who are younger than 18 years old.
Because disability costs are inescapable additional expenses that other taxpayers do not have to deal with, the goal of the DTC is to provide some relief for these costs so that greater tax justice can be achieved.
If you are qualified for the DTC, it is possible that you may be able to claim not only the (1) HATC but also the (2) METC for the same accessibility upgrades or renovations! We strongly suggest that you discuss this matter with either your financial planner or your accountant.
The Program for Assistive Devices in Ontario
Despite the fact that this does not apply to renovations, it is essential to be aware of the Assistive Devices Program, which offers financial assistance and support focusing on the needs of consumers to people living in Ontario who have long-term physical disabilities. People who have physical disabilities will have access to assistive gadgets that are tailored to their specific requirements thanks to a programme that covers the cost of these equipment. This will allow them to increase their level of freedom. Initial access is typically gained through the assistance of a physician, either a specialist or a general practitioner, who then delivers a diagnostic. In the majority of device categories, a person who is authorised to do so evaluates the particular requirements of the individual and then prescribes the right equipment or supplies