How should you handle taxes and payment for aids hired to provide home care?
Home accessibility tax credit (HATC)
Any renovation, addition, or change you have made to your home to make it more comfortable for your senior is worth a federal credit of up to $1,500 per year and individual. However, the renovation must have been completed for an old or a disabled individual, already accepted for the DTC. This rule indicates that this credit is solely allocated for the ease of a care-receiver. There’s no restriction on the renovation made; it can be for accessing home easier, making better mobility within home space, or lowering the risk of injury.
A good home renovation under HATC can include:
• Grab bars
• Walk-in tubs
• Wheel-in showers
• Widening doorways for wheelchairs
• Lowering cabinets
It is worthy of note that if you take a loan to pay for the renovation, you’re unlikely to claim any interest on that loan.
Plus, HATC does not cover the expenses of household appliances, housekeeping, or gardening, but you can claim both HATC and METC (medical expense tax credit). You can double-dip these credits. In other words, if, for example, you make a wheelchair ramp, it counts both as medical expense and home accessibility renovation.