There really is no place better than home. The extension of Ontario’s Seniors Home Safety Tax Credit in 2022 is to help you safely stay in your home longer.
The Seniors’ Home Safety Tax Credit is a refundable personal income tax credit worth 25 percent of up to $10,000 per household in eligible expenses, a maximum credit of $2,500. This credit can be shared by people who live together, including spouses and common law partners.
“We are empowering Ontario’s seniors with the choice to live in their homes and remain in their community as long as they choose,” said Raymond Cho, Minister for Seniors and Accessibility. “Providing a tax credit for renovations will give seniors and their families real help to stay in their homes longer.”
The extension of this credit will assist seniors, or those living with senior relatives, to renovate their homes to make them safer and more accessible. The credit is available regardless of their incomes and whether they owe any tax.
Individuals can claim the credit for renovation expenses to their principal residence, either owned or rented, or to a residence that they reasonably expect to become their principal residence within the 24 months following the end of the year.
You are eligible to claim the credit if you:
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are 65 or older by the end of the year, or
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live with a senior relative, or
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will live with a senior relative within 24 months after the end of the year.
Here are some examples of eligible renovations:
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Installing grab bars and related reinforcements in bathrooms
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Wheelchair ramps, stairlifts and elevators
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Light fixtures in the home and exterior entrances
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Non-slip flooring
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Automatic garage door openers
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Certain renovations to allow first-floor occupancy or a secondary suite for a senior
The credit is available for the 2021 and 2022 tax years and is worth 25% of up to $10,000 in eligible expenses per year for a senior’s principal residence in Ontario.
Expenses must be paid or payable in 2021 and 2022.
How to claim the credit
The Seniors’ Home Safety Tax Credit is a temporary, refundable personal income tax credit for 2021 and 2022.
You can claim the credit on your Income Tax and Benefit Return. (Note: You may be able to claim the same expenses as a medical expense tax credit and the federal home accessibility expenses tax credit.)
To claim the credit, you should keep receipts from suppliers and contractors.
Bowie Financial has prepared thousands of reviews and evaluations for Canadian taxpayers, to determine potential tax savings; while keeping our clients up to date on the latest changes. We help our clients stay tax-efficient all year round. Learn more about our tax services here!
Book an appointment with our Senior Tax Specialist Tracy Sun today!
Sources: https://news.ontario.ca/en/release/1001326/ontarios-seniors-home-safety-tax-credit-being-extended