Growing older has its perks! Among them, tax breaks. Here, a few ways you can save a few bucks at tax time.
Pension Income Splitting: If you’re one of the lucky few to be taking home a pension, you might be able to split up to 50 per cent of your eligible pension income with your spouse or common-law half. As they say, sharing is caring!
Medical Expenses: Have you been racking up the medical bills lately, with prescriptions, doctor’s fees and other expenses? Save your receipts and at tax time you can claim the total eligible medical expenses paid for you, your spouse or common-law partner, and your or your spouse’s or common-law partner’s children born in 1998 or later. This can include amounts claimed for attendant care or care in an establishment, says Revenue Canada. For a list of eligible medical expenses visit canada.ca
Public transit amount: Not only is public transit a great way to stay mobile long after you’ve given up your driver’s license, and an opportunity to interact with your community, it also offers a tax perk: the ability to claim the cost of monthly or annual transit passes for travel within Canada.
Family caregiver amount (FCA): As you age you may find yourself taking care of loved ones, whether it’s a spouse, a friend or a grandchild. If the person you are assisting has an impairment in physical or mention functions, you may be able to claim up to an additional $2,093 when calculating certain non-refundable tax credits. But according to Revenue Canada, “Non-refundable tax credits reduce your federal tax. If the total of the non-refundable tax credits is more than your federal tax, you will not get a refund for the difference.”
Registered retirement savings plan (RRSP): If you’ve been socking away money in your RRSP over the years, don’t stop now just because you’re nearing retirement! Deductible RRSP contributions can reduce your tax bill and you can keep reaping those benefits until December 31 of the year in which you turn 71.
For more tax-time tips visit canada.ca