Forgotten Dollars Part 10
The Age Amount and Home Accessibility Credit
Hi there, Welcome back to “Your Canadian Senior Moment”!
As we continue our series on overlooked benefits, we’re focusing on two important tax credits that can put money back in your pocket: The Age Amount and the Home Accessibility Tax Credit. For many seniors, these are valuable savings that go unclaimed because they simply don’t know about them. Understanding these credits can make a significant difference in your financial well-being.
The Age Amount: A Simple Tax Credit
The Age Amount is a non-refundable tax credit designed to provide tax relief for seniors. It is one of the most basic but often overlooked credits that you may be eligible for.
- Who is Eligible? You must be 65 years of age or older on December 31st of the tax year.
- How it Works: The maximum amount for the Age Amount tax credit in 2025 is $8,693. This amount can be claimed on your income tax return.
- Important Note: This credit is reduced if your net income is above a certain amount. For the 2025 tax year, the Age Amount begins to be reduced when your net income exceeds $41,200, and it is eliminated entirely once your net income reaches $97,975.
The Home Accessibility Tax Credit (HATC)
The Home Accessibility Tax Credit is a non-refundable tax credit that helps seniors and people with disabilities with the cost of home renovations. It is designed to make your home safer and more accessible so you can live there longer.
- What Renovations Qualify? The renovations must allow a senior to be more mobile or functional in their home. Some examples of eligible renovations include:
- Installing grab bars in the bathroom.
- Adding a walk-in bathtub or shower.
- Installing handrails in hallways or stairwells.
- Building a ramp to allow for wheelchair access.
- Installing non-slip flooring to prevent falls.
- How it Works: The credit is based on a maximum of $20,000 in eligible expenses, which means you could get a credit of up to $3,000. It is a credit that you can claim on your income tax return, and you can also claim it on behalf of a senior relative if you are supporting them.
Your Turn to Claim!
These tax credits are valuable tools for saving money and making your home safer. If you are 65 or older, you are likely eligible for The Age Amount, and if you have made any home renovations to improve accessibility, you may be eligible for the Home Accessibility Tax Credit. Take a moment to check your tax records or talk to a tax professional to see if you have claimed these credits.
Next week, in our ongoing series, we’ll dive into a new topic: pension income splitting and a new credit for multigenerational homes.
(Please remember: We are not financial or medical professionals, and the information above is for educational purposes only. It does not constitute specific financial advice. For personalized guidance on your finances, please consult a qualified professional.)
Warmly,
Bill and Marilyn
Founders of Canadian Senior Moment
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