In a recent article we touched on the CRA highlights for 2013. One of these was the pat on the back the Harper Government gave themselves in regards to Canadian seniors and taxes. Let’s take a look at these and see if this self praise is well deserved or not.
Old Age credit:
This has been a non refundable tax credit put in place since 2006, and has increased by $1,654. Since then.
Pension income:
This is a non refundable credit with the max. allowable deduction of $2,000. This also has been in place since 2006.
Income splitting for pension:
This was the Harper Governments implementation. Couples that are eligible can split up to 50% of pension income that qualifies.
GST/HST Credit:
Is applicable for some seniors, depending on their income.
Public Transit Amount:
This is a potential credit that may be available to seniors as well
Medical Expenses:
Canadian seniors may be entitled to claim certain medical expenses to help lower their taxes.
Tax Free Savings Account:
Came into effect in 2009, allows for tax savings.
Increased age contribution for RRSP:
Tax payers can now continue to contribute to their RRSP up to the age of 71.
Community Volunteer Income Tax Program (CVITP):
For seniors who have a simple tax return they may be able to get it done through this program.
This is not all inclusive depending on your particular circumstances you may be eligible for other types of credits.
So, when you look over the list what do you think? Does the Harper Government treat the Canadian Seniors with special tax care?
One thing you can be sure of, is that we here at Toronto Accountant have a great deal of respect for our Seniors and if you have a tax requirement that you feel is beyond the basics then why not give us a call, we may be able to help.
