As people age, they may require special modifications to their homes to ensure their safety and well-being. The cost of these modifications can be significant, but the Canadian government offers a tax credit to help alleviate some of the financial burden. In this blog post, we’ll cover everything you need to know about the Seniors’ Home Safety Tax Credit (SHSTC).
What is the Seniors’ Home Safety Tax Credit?
The SHSTC is a non-refundable tax credit that is available to Canadian seniors and their family members who make eligible home renovation expenses. This tax credit is designed to help offset the costs of making home modifications that promote safety and accessibility for seniors. The credit is worth up to 15% of eligible expenses, to a maximum of $10,000 per year.
Who is eligible for the SHSTC?
To be eligible for the SHSTC, you must meet the following criteria:
- Be 65 years of age or older by the end of the tax year
- Be a resident of Canada
- Own the home or have a lease that is at least 20 years
- Make eligible home renovation expenses for the purpose of improving safety and accessibility in the home
What expenses qualify for the SHSTC?
The SHSTC covers a range of expenses related to home modifications that improve safety and accessibility for seniors. Some eligible expenses include:
- Installation of grab bars and handrails
- Walk-in bathtubs and showers
- Wheelchair ramps and lifts
- Non-slip flooring
- Widening doorways and hallways
- Lever handles on doors and faucets
- Motion-activated lighting
It’s important to note that not all home renovation expenses are eligible for the SHSTC. Expenses that do not directly relate to improving safety and accessibility, such as cosmetic upgrades, are not eligible.
How to claim the SHSTC
To claim the SHSTC, you will need to complete the Schedule 1-A form when filing your tax return. You will also need to keep all receipts and invoices related to the eligible expenses in case the Canada Revenue Agency (CRA) requests them for verification.
It’s important to note that the SHSTC is a non-refundable tax credit. This means that if the credit exceeds your tax liability, the excess amount cannot be refunded to you.
Conclusion
The Seniors’ Home Safety Tax Credit is a valuable tax credit that can help offset the costs of making home modifications to promote safety and accessibility for seniors. Eligible expenses include a range of modifications that improve safety and accessibility, such as grab bars, non-slip flooring, and wheelchair ramps. To claim the credit, you will need to complete the Schedule 1-A form and keep all receipts and invoices related to the eligible expenses.