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February 09, 2022

Tax tips for those 65 and older

Tax season doesn't have to be -- well, taxing.

If you're 65 or older, Canada Revenue Agency (CRA) has some tips on benefits and credits designed just for seniors.

For instance, if you were 65 or older on December 31, 2021 and your net income was less than $78,684 you can claim an age amount of up to $6,720.

You may also claim a pension income amount up to $2,000 if you reported eligible pension, superannuation or annuity payments on your income tax return. As well, if you're receiving a pension you may be entitled to pension income splitting with your spouse or common-law partner of up to 50 per cent of your eligible pension income.

Your Registered Retirement Savings Plan (RRSP) deductible contributions can also help reduce your income tax. You have until December 31 of the year you turn 71 to contribute to your RRSP.

Other tax breaks that are worth looking into include the Registered Disability Saving Plan (RDSP); Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit that helps people with modest incomes offset all or part of the GST/HST they pay; Working Income Tax Benefit (WITB); a disability amount; public transit amount; and medical expenses that you may qualify for.

If you're computer and web savvy you may also file your your income tax online through the CRA. The online service enables you to file your income tax and benefit returns, make a payment, sign up for direct deposit and track your refund. All you need is your Social Insurance Number and date of birth to access the system.

The agency also offers a Community Volunteer Income Tax Program to assist those with modest incomes or simple tax situations.

Remember...the deadline to file your Personal Income Tax is April 30, 2013. Those who are self-employed have until June 15 unless they have a balance owed and then the deadline is April 30, 2013.

By Donna Donaldson, MSN Money

Will you be filing your taxes online this year?




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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...