Smart Tax Strategies for Retirees: Keep Track of Health & Medical Expenses

Smart Tax Strategies for Retirees: Keep Track of Health & Medical Expenses

Unfortunately, as you age, you may have increased health care and medical costs that are not paid for by the government.   A smart tax strategy during retirement is to keep track of your medical expenses and take advantage of any credits that may be available.   Common expenses that may be tax-deductible are personal health care plans, prescription drugs, hearing aids, mobility aids, and some of the costs if you live in a nursing or retirement home.  Some of the credits you may be entitled to are: Medical Expenses Tax Credit Disability Tax CreditCanadian Caregiver AmountHome Accessibility ExpensesSeniors' Home Safety Tax Credit What is a tax credit?  A tax credit is a non-refundable item that reduces the amount of tax that is owed, whereas a tax deduction reduces your taxable income. Key Tax Credits to Review Medical Expenses – Tax Credit Some of the medical expenses that you may be able to claim include: Prescription drugsPersonal health plansCare Facilities, expenses for attendant care and care in a facility such as a nursing...
Read More