In Canada, it’s tax time and there are many tax deductions and credits for seniors that they may not be aware of. Seniors citizens are eligible for a wide range of benefits. When these are combined with other credits, this means a bigger savings.
What tax deductions and credits can I claim as a senior citizen?
- Age amount. You’re over 65 and depending on your income this deduction can be quite large.
- Pension income amount. This may be available if you received eligible pension, superannuation or annuity payments. The Canada Pension Plan income doesn’t count as one of these.
- Medical expenses. Quite often, the expenses for medical care for seniors is quite high. Included are prescription medicine costs and other more obscure items such as air conditioners for those with multiple sclerosis, bathroom aids and devices used by the disabled. Keep your receipts!
- There is also a disability tax credit for those with severe disabilities. This must be certified by your doctor so discuss this with them.
- Pension income splitting. Under certain circumstances you can report half of your pension amount on a spouse’s income tax return, which will save you tax if your spouse is in a lower income tax bracket.
- If you are 60 to 70 and employed or self-employed you must still make contributions to CPP or QPP, even if you are receiving these benefits. You can claim a tax credit for these contributions. Once you reach 65 and before you turn 70, you may choose to stop making contributions.
For more information and tax tips for seniors, click here.