With time running short to file your taxes, our friends at TurboTax put together some often overlooked tax credits for senior citizens to help maximize your return. Canadian seniors are eligible to receive a wide range of tax benefits, including a few not available to younger taxpayers. Combined with other tax credits, these credits mean seniors can save even more on their taxes.
Below are the most often overlooked tax credits you could be missing out on:
- Age Amount: You are allowed to claim a credit if you were 65 or older at the end of the tax year. The age amount you can claim depends on your income. If your income is less than $35,466, you would claim $7,033. If you earn more than $35,466, but less than $80,256, you would claim $6,854 minus 15 percent of the amount by which your income exceeds $35,466.
. - Pension Income Amount: You can claim up to $2,000 in credit for your pension income amount if you have an eligible pension income. If you are married and earning a higher income than your spouse, you may shift up to 50 percent of your eligible pension income to your spouse so that your family pays a lower tax.
. - The Home Accessibility Tax Credit (HATC): This credit allows seniors to claim up to $10,000 in eligible renovation expenses. These types of renovations make the home safer and more accessible, and include improvements such as wheelchair ramps, bathroom grab bars and more. If you’re living with a relative who is supporting you, they may also be eligible for this credit.
. - Medical Expenses: You can claim eligible medical expenses on your tax return that aren’t reimbursed if they exceed 3 percent of your income. The CRA allows seniors to claim a wide range of medical costs, some are obvious, but others, such as air conditioning, may not be. Home improvements that facilitate mobility and safety also qualify as medical expenses, and depending on income level, can lower tax payable significantly.
On top of these, you may be eligible to receive several other tax credits and benefits depending on your situation. “Those who have the misfortune of a serious medical impairment may receive a disability tax credit. This credit requires a doctor to certify disability but is substantial, coming in at $8,113 at the federal level”, says Julie Thibodeau, Lead Tax Expert at Intuit TurboTax Canada.
To ensure you’re not missing out on any, visit the TurboTax website for a checklist of tax credits for seniors to look for when finalizing your taxes.
5,190 views