Quick tax tips for seniors

Throughout tax season, check in with clients to ensure they’re taking advantage of all credits and opportunities.

Read: 7 handy tax return tips from Golombek

And when helping older investors, Standard Life suggests offering these four tips:

1. Consider pension-splitting opportunities: If a client is older than 65, she can create eligible pension income by transferring funds that are invested in non-registered GICSs to term funds or other annuity products. She can then split that income with her spouse, as well as review her estate planning options.

Read: How to file taxes for snowbirds

2. Avoid RRSP penalties: Before a client starts converting her RRSP into a RRIF, ensure she hasn’t over-contributed to prevent costly penalties.

3. Carry forward RRSP tax deductions: Following RRSP contributions, your client can carry forward deductions—even if she’s older than age 71. If she’s expecting a lower marginal tax rate in future years, make sure all available tax deductions are used.

Read: Tax credits for seniors

4. Make the most of TFSAs: TFSA investment income isn’t taxed, so help clients leverage these accounts. Those who haven’t yet opened a TFSA have $31,000 of contribution room this year.

For more, read:

Canadians confused when filing taxes

Tax consequences of transferring life insurance

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