Tax tips for the average Canadian over 60
Splitting CPP with a spouse
The government gives you the option to split your CPP with a spouse after you have been together for a certain period of time. Giving you the option to split your CPP can be very beneficial when one of the two may be in a higher tax bracket than the other. Unfortunately, this has to be done with Human Resources & Social Development Canada with Form ISP-1002 and months prior to the tax return season
Don’t forget medical expenses
In most cases, a number of your medical expenses can be claimed on your tax returns. Some of the main expenses that can be claimed are dental, wheelchairs, medical treatment provided outside of Canada, water purifiers, prescription medication, and prescription eyewear. Understanding what you’ve have done or purchased throughout the year is helpful and it would be wise to go to your local tax consultant to see what you can claim.
When getting taken care of by a family, they can get benefits
When you’re over 65 years old and being taken care of by a family member due to a medical or work-related complication, that family member could be eligible to claim the Canada caregiver tax credit. But to qualify for this you must have a legitimate doctors note stating the severity of the patient, explaining why they need you to care for them and have made less than $23,906 in 2019.
Remember to file your tax returns
If you forget to file your taxes you could face a failure-to-file penalty which is a bill of 5 percent of your unpaid taxes for every month your tax return that it’s late. If you do file your taxes you could also be eligible for tax deductions, credits and/or benefits that are caused by your GST/HST credits.
Going to your local tax expert is always a plus, they’ll do their best in assisting you in any way to either better understand your taxes or to help you sort out them out when you’re not sure of something.