Credits and benefits for seniors

 

Important fact

  • Following are two changes that might affect you:
  • Canada Pension Plan (CPP): If you are between 60 and 65 years of age, you receive a CPP or Quebec Pension Plan (QPP) retirement benefit, and you are still working, you will now have to contribute to the CPP. If you are 65 to 70 years of age, receive a CPP or QPP retirement benefit, and are still working, you will now have to contribute to the CPP unless you elect to stop contributing to the CPP.
  • Medical Expenses for an eligible dependant: You may be able to claim a non-refundable tax credit based on the cost of medical expenses for any 12-month period ending in 2011.

Save on your taxes

There are credits, benefits, and deductions you might be entitled to. Some of these are:

  • Age amount: If you were 65 years old or older on December 31, 2011, and your net income was less than $ 76,541, you might be able to claim this non-refundable tax credit.
  • Pension income amount: If you reported eligible pension, superannuation, or annuity payments on your return, you might be able to claim this non-refundable tax credit.
  • Pension income splitting: If you and your spouse or common-law partner split your pension income by completing Form T1032, Joint Election to Split Pension Income, you (the pensioner) can claim a deduction for the elected split-pension amount.
  • Registered retirement savings plan (RRSP): Deductible RRSP contributions may be used to reduce your tax.
  • Goods and services tax / harmonized sales tax (GST/HST) credit: Low- and modest-income individuals and families may apply for this quarterly payment by completing the application on the first page of their 2011 income tax and benefit return.
  • Disability tax credit: If you had a severe and prolonged impairment in physical or mental functions in 2011 and meet certain conditions, you might be able to claim this non-refundable tax credit.
  • Public transit tax credit: Did you use public transport in 2011? You might be able to claim the cost of your eligible transit passes or electronic payment cards as a non-refundable tax credit.

Canada Revenue Agency

www.cra.gc.ca

2012-03-09T14:19:21+00:00