Senior Tax Credits and Benefits
When retirement income planning, a key feature is paying as little tax as possible. The following is a listing of some of the key tax credits and benefits for seniors.
This information has been taken directly from the CRA web site.
- Age amount – You can claim this amount if you were 65 years of age or older on December 31, 2019, and your net income is less than $87,750 The maximum amount you may be able to claim is $7,494.
- Pension income amount – You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on your return.
- Pension income splitting – If you’re receiving a pension, you may be eligible to split up to 50% of your eligible pension income with your spouse or common-law partner.
- Disability amount – If you or your dependent have a severe and prolonged impairment in physical or mental functions and meet certain conditions, you or your dependent may be eligible for the disability tax credit (DTC). To determine eligibility, you must complete Form T2201, Disability Tax Credit Certificate and have it certified by a medical practitioner. Canadians claiming the credit will be able to file online regardless of whether or not their Form T2201 has been submitted to the CRA for that tax year.
- Medical expenses – You can claim the total eligible medical expenses paid for you, your spouse or common-law partner, and your or your spouse’s or commonlaw partner’s children born in 1998 or later for any 12-month period ending in 2019 and not previously claimed. This can include amounts claimed for attendant care or care in an establishment.
- Guaranteed Income Supplement – The Guaranteed Income Supplement (GIS) provides a monthly non-taxable benefit to Old Age Security (OAS) pension recipients who have a low income and are living in Canada.
You qualify for the GIS if you meet all of the following conditions if:
✓ you are receiving an Old Age Security pension; and
✓ your annual income (or in the case of a couple, your combined income) is lower than the maximum annual threshold.
✓ If you receive the guaranteed income supplement or allowance benefits under the old age security program, you can renew your benefit by filing your return by April 30. If you choose not to file a return, you will have to complete a renewal form.
This form is available from Service Canada
- Registered disability savings plan (RDSP) – A registered disability savings plan is a savings plan to help families save for the financial security of a person who is eligible for the disability tax credit. RDSP contributions are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.
- Goods and services tax/Harmonized sales tax (GST/HST) credit – You may be eligible for the GST/HST credit, a tax-free quarterly payment that helps individuals and families with modest incomes offset all or part of the GST or HST that they pay. To receive this credit, you must file an income tax and benefit return every year, even if you did not receive income in the year. If you have a spouse or common-law partner, only one of you can receive the credit. The credit will be paid to the person whose return is assessed first. The amount will be the same, regardless of who (in the couple) receives it.
- Consolidation of Caregiver Credits – For 2017 and subsequent taxation years, the budget proposes to consolidate the infirm dependent credit, the caregiver credit (for in-home care of a relative) and the family caregiver credit as part of the new Canada caregiver credit (CCC).
- Public transit amount – You can claim the cost of certain public transit passes, such as a monthly or annual pass, for travel within Canada on public transit in 2019.
Be sure to review with your accountant and financial advisor to make sure you are taking advantage of those credits that apply to you.