Home Accessibility Tax Credit (HATC) – A Federal Opportunity for Accessibility

Understanding the Home Accessibility Tax Credit (HATC)

The Canadian government has introduced various tax credits to support its citizens, and one such initiative is the Home Accessibility Tax Credit (HATC). This credit aims to help seniors and disabled individuals make their homes more accessible and safe. Let’s delve deeper into the specifics of this tax credit.

home-accessibility-blueprint-wheelchair-access tax credit

What is the HATC?

The HATC is a non-refundable federal tax credit. Its primary purpose is to financially assist seniors and those with disabilities in making necessary modifications to their homes, ensuring they are more accessible and safer.

How much can you claim?

Initially, the maximum credit amount was set at $10,000. However, starting from 2022, this amount has been increased to $20,000.

Who is eligible?

To qualify for the HATC, you must either be a senior over the age of 65 or someone who qualifies for the Disability Tax Credit (DTC).

What expenses are covered?

For an expense to be considered eligible, the renovation must:

  • Be enduring and integral to the dwelling.
  • Allow the qualifying individual to access, move around, or function within the home.
  • Reduce the risk of harm to the qualifying individual, either within the home or when accessing it.

Some practical examples of these renovations include installing non-slip flooring, remodeling bathrooms and kitchens for better accessibility, setting up ramps, and widening doorways to accommodate wheelchairs.

How to claim the HATC?

The HATC was introduced in 2015 and is applicable from the 2016 tax year onwards. If you haven’t claimed it yet, you can make adjustments to retrieve the credit for any unclaimed period.

Maximizing your credits

An exciting aspect of the HATC is the potential to claim double or even triple credits. Many accessibility-related expenses also qualify for the medical expense tax credit (METC). This means you can claim both the HATC and METC for the same expense. Additionally, with the introduction of Ontario’s Home Safety Tax Credit, residents of Ontario might even get triple credits back on the same expenses.

Need Assistance with Tax Planning?

Navigating the world of tax credits can be complex. At Bowie Financial Inc., we specialize in offering tax services tailored to various age groups, including retirees and seniors. Whether you’re looking into RESP, RDSP, RRSP contributions, pension income splitting, Disability Tax Credits, or other tax benefits, our team is here to guide you.

If you find yourself in a complex tax situation or have multiple years to file, don’t hesitate. We’re here to simplify the process and ensure you’re in good standing with the CRA. Contact us today to learn more about how we can assist you with your unique tax needs.