Tax tips for seniors

To help your senior client claim the benefits and credits to which they’re entitled, use this handy list, courtesy of the CRA:

• Disability tax credit (non-refundable) — those eligible for the credit may be able to claim the disability amount of $8,416 on line 31600 of their tax return (Step 5 — Federal tax). Read about eligibility criteria for the credit.
• Canada caregiver credit (non-refundable) — available to those who support a spouse, common-law partner or dependant with a physical or mental impairment. For a spouse or partner, the client may be able to claim $2,230 in the calculation of line 30300.
• GST/HST credit — a tax-free quarterly payment for those with modest incomes.
• Provincial or territorial benefits and credits — also for those with modest incomes

Seniors who owe tax in 2019 may be able to deduct the following:

• Medical expenses — lines 33099 and 33199
• Home accessibility expenses — line 31285
• Age amount — line 30100; net income must be less than $87,750
• Pension income amount — line 31400

Clients may also be able to take advantage of pension income splitting, for eligible pension income.

Read:

Is pension income splitting available for the year of death?

Can a surviving spouse split her income with her deceased spouse?

Seniors who receive the guaranteed income supplement should file their taxes by April 30 to keep benefits coming, the CRA says in a release.

The agency lists all deductions, credits and expenses online, as well as tax information for those turning 65 or retiring.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.