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Living in our own homes as we age improves our quality of life. By doing so, we maintain our sense of well-being, independence & self-worth. However, to do so it is often necessary to undertake costly renovations to maintain our health & safety. Recognizing this, the federal government created the Home Accessibility Tax Credit (HATC) to help Canadians live in our homes as long as possible.
Who Qualifies for HATC?
You may qualify for the HATC if you meet any of the following:
– Are a Qualifying Individual
– Support an Eligible Individual
Read CRA’s HATC’s points 2 & 4 for full details.
What Expenses Qualify for HATC?
Expenses that can be claimed for the tax credit are renovations that involve making your home safer and more accessible. They include but are not limited to:
– Walk in tubs, wheel in showers
– Grab bars
– Adding ramps or widening doorways for wheelchair accessibility
– Lowering cabinets
– The cost of building plans, permits & equipment rentals
– Installation costs such as electricians, plumbers, carpenters etc.
How to Claim HATC
Claim the HATC on your tax return. Keep all receipts, records of dates, types of expenses, names of contractors & tradespeople & their GST numbers.
If you or a family member does the work, you must have a GST number to claim labor costs, otherwise you can only claim materials. For all claims the names & GST numbers must be provided or the labour costs will be rejected.
How much is the Credit?
The HATC applies to total qualifying expenses up to $10,000 per year, resulting in a maximum tax credit of $1,500 ($10,000 x 15%). You claim the HATC when filing your annual tax return, so make sure you bring in all your receipts!
If any of the expenses also qualify for the Medical Expense Credit, they can be claimed as medical expenses as well as the home accessibility credit.
Do you need more information on the Home Accessibility Tax Credit? Our Tax Specialists have the answers! Contact us to find out what you need to know.