Tax season is here. Some seniors have their income tax prepared by a tax preparation company For those who do their own taxes make sure you don’t miss any deductions. Using tax software can help but check to see if the following deductions apply to you. You may be eligible for more than you think.
Deductions:
- Medical and dental expenses. These can add up to quite a lot. In the U.S. the amount that you can claim has been increased. Included in these expenses are prescription medications, prescriptions for eyeglasses, some home care expenses and medical transportation. Check your state and province to see what you can claim. Bathroom aids, air conditioners and page turning devices can also be claimed in Canada along with other less obvious medical expenses.
- Capital Gains and The Home Accessibility Credit. In the U.S. part of the portion of the money realized from selling your home is not taxable. Have you lived in your house for at least 2 of the 5 years before it sold? Then up to $250,000 of the profit ($500,000 for married taxpayers filing jointly) is not taxable. In Canada, many seniors who are 65 and over make changes to their home to improve their quality of life. These seniors may apply for the home accessibility credit, a non-refundable tax credit.
- Disability tax credit. If you or a dependent have a severe, long-lasting disability that affects your life physically or mentally, you may be eligible for the disability tax credit. Complete the appropriate tax form and have your healthcare provider sign it.
- Public transit amount. If you live in Canada you can claim the cost of your monthly or yearly transit passes for transportation on public transit.
In both Canada and the U.S. tax deductions can vary. Before filing your income tax, read all of the information attached with your forms or go online to your government website. Each year many seniors lose out on credits when they fail to claim eligible tax deductions.
