Tax Tips for Canadian seniors over 65.

If you’re in your golden years or taking care of a family member who is over the age of 65, take a minute to review what credits and deductions you could both be eligible for.

Make sure you file a tax return.

It’s important to file your tax return every year. This ensures you receive the credits, deductions, and benefits you’re entitled to. Like the GST/HST credit and the Canada Carbon Rebate. 

If you’re receiving the Guaranteed Income Supplement (GIS) through Old Age Security, it’s also important to file on time to continue receiving your benefits without any interruptions.

Split pension income and save.

You’re allowed to split up to half of your eligible pension income with a spouse or common-law partner. Income splitting allows some seniors to enjoy a significant tax reduction. In situations where the lower-income spouse has little income, the tax savings are substantial. 

If your spouse is unable to completely offset their age amount, pension income, and disability amount against tax payable, they may transfer the unused portion to your return.

Split your CPP and save.

You may be able to split part of your CPP retirement benefits with your spouse. This would depend on how long you lived together when you were contributing to the plan. 

This is an advantage if one senior is in a higher tax bracket than the other. However, to do so, you must apply to Human Resources & Social Development Canada using Form ISP-1002. It can't be done at the time of tax preparation.

Double check how foreign pension income is taxed.

Pensions from foreign countries may be subject to special tax treatment under the terms of a tax treaty. Always check with a Tax Expert to determine if the pension you receive from a foreign source is taxable in Canada.

Claim medical expenses.

You can claim a portion of most medical expenses on your tax return! Everything from medication to nursing home fees, and even medical insurance for a trip is considered eligible. 

Medical expenses are reduced by a percentage of your income, so it’s usually more beneficial for the lower income spouse to claim them. 

If you had to travel to obtain medical treatment that wasn’t available where you live, you may be able to claim the cost of transportation, meals, and accommodation.

Claim the cost of attendant care.

If you or your loved one is living in a retirement home and is eligible for the disability tax credit, they can claim the costs relating to attendant care as a medical expense. To make this claim, the retirement home must provide you with an invoice detailing the amount paid for attendant care, which includes housekeeping, laundry, transportation, and meal preparation. Rent and food expenses aren’t covered. If you claim attendant care more than $10,000, you can’t also claim the disability tax credit.

Claim nursing home expenses.

For full-time care in a nursing home, there’s no limit on the total that you or your loved one can claim as medical expenses. If you pay your parents’ nursing home fees, you might be able to claim them as a medical expense, however you’ll be subject to limits. It’s important to know that you can’t claim both nursing home fees and the disability tax credit, so it might make more sense to restrict your claim to the attendant care portion of the fees, if they don’t exceed $10,000.

Taking care of a senior has its tax benefits.

If you're over 65 and dependent on your children or other family members because of an impairment in physical or medical functions, they may be able to claim the Canada Caregiver Tax Credit. 

To qualify for the tax credit, your earnings need to be less than $28,041 in 2024. A doctor also needs to supply a note explaining the nature and duration of the impairment. 

If you're eligible for the disability tax credit, they may also be able to claim any portion that you don't need to reduce your taxes to zero.

An H&R Block Tax Expert can help you make sure you claim every deduction and benefit you’re eligible for.