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How do I claim the Multigenerational Home Renovation Tax Credit (MHRTC)?

by TurboTax•4• Updated 1 month ago

The multigenerational home renovation tax credit (MHRTC) helps pay for major changes to a home so that an older or disabled person can live near a family member. It’s a refundable credit. That means, if part of your credit is used to bring your tax owing down to zero, and there’s still some credit remaining, you’ll get a tax refund for the remainder.

The maximum credit is 15% of the renovation costs, up to $50,000. So, if you qualify for the full credit, your benefit is $7,500.

Find out if you’re eligible by completing the checklist at who can claim. Find out if your expenses are eligible by completing the checklist at expenses you can claim.

Select your TurboTax product and follow these instructions to claim the MHRTC.

  1. Answer the initial Personal info and Tax profile interview questions if you haven't already. This unlocks the Tax home screen.
  2. From the Tax home screen, under Add to your return, enter Multigenerational and select Multigenerational Home Renovation Tax Credit.
  3. At the Multigenerational home renovation tax credit summary screen, select Add new and continue.
  4. At the Multigenerational home renovation tax credit eligibility screen, select Yes then continue.
  5. At the Multigenerational home renovation tax credit expenses screen:
    • Enter your renovation expense details.
    • Use the Add button to enter additional expenses. 
    • Enter any info about reimbursement and claims by others, and then continue. 
  6. At the Multigenerational home renovation tax credit summary screen, if there are no more projects to enter, select Continue. 
  7. From the Tax home screen, select View detailed summary, and under Payments and Credits you’ll see your claim on line 45355, Multigenerational home renovation tax credit.
  1. Complete the Introduction/Profile steps of your return until the Find icon appears in the menu. Select the Find icon, enter Multigenerational in the search bar, select Multigenerational home renovation tax credit and select Go.
  2. At the Your payments profile screen, check the box for Multigenerational home renovation expenses and continue.
  3. At the Multigenerational home renovation tax credit eligibility screen, complete the questions and then continue.
  4. At the Multigenerational home renovation expenditures screen, add your renovation expense details and then continue. 
  5. At the Additional multigenerational home renovation tax credit claims screen, answer the question. 
  6. If you answered No at the previous step, review the Multigenerational home renovation tax credit claim summary screen, make any changes if needed, otherwise select Done.
  7. If you select View detailed summary, you’ll see the credit amount included under Refundable tax credits at the line for Other credits.