Tax Season Simplified for Seniors: Key Insights from the CRA Webinar
Tax season can be a daunting time, especially for our elder community who are navigating the complexities of tax credits, benefits, and income reporting. To assist you, the Canada Revenue Agency (CRA) has recently released a webinar to address common questions and concerns surrounding this topic.
This informative webinar provides valuable insights, delivered in a very accessible manner, into the tax considerations unique to Canadian seniors, ensuring you maximize your entitlements and fulfill your tax obligations accurately. We’ve gone ahead and summarized the CRA webinar for you herein - to watch the webinar, click the button at the very bottom of this article.
Key Highlights from the CRA Webinar:
Old Age Security (OAS): A monthly payment available to seniors aged 65 and over. Be mindful that if your income exceeds a certain threshold, you may need to repay part or all of your OAS pension. Click here to learn more about OAS here.
Canada Pension Plan (CPP): Benefits based on your contributions made during working years. Click here to learn more about CPP.
Private Pensions and Investments: Income from employer-sponsored pension plans, Registered Retirement Savings Plans (RRSPs), and other investments.
Key Tax Credits and Benefits
Age Amount: If you were 65 years or older on December 31, 2024, and your net income is below a specified amount, you may be eligible for this non-refundable tax credit. Click here to learn more about the Age Amount tax credit.
Pension Income Splitting: Allows you to split up to 50% of your eligible pension income with your spouse or common-law partner, potentially reducing your overall tax burden. Click here to learn more about Pension Income Splitting.
Canada Caregiver Credit: Provides support for those caring for a spouse, common-law partner, or dependent with a physical or mental impairment. Click here to learn more about the Canada Caregiver Credit.
Home Accessibility Tax Credit: If you’ve made renovations to your home to improve accessibility, you may be eligible for a tax credit to offset the costs. Click here to learn more about the Home Accessibility Tax Credit.
Additional Credits & Benefits Discussed
Medical Expenses
Disability Tax Credit
Pension income amount
Amounts transferred to or from your spouse
Multigenerational home renovation tax credit
Filing Your Taxes
Timely Filing: The key to maximizing your tax entitlements is to ensure you file your income tax and benefit return by April 30, 2025, to avoid interruptions in any benefit and credit payments.
Digital and Telephone Filing Options: Seniors can file their taxes online using certified tax software, or by phone through the CRA’s File My Return service, which is available to eligible individuals with low or fixed income.
Available Resources: The CRA offers various services to assist seniors, including the Community Volunteer Income Tax Program (CVITP), where volunteers help prepare tax returns for eligible individuals. Click here for more information or to find a clinic.
Be Scam Smart!
To protect yourself from scams, it’s important to know when and how the CRA might contact you.
Always take a minute to question why the CRA needs your personal information.
If in doubt, check your My Account portal on the CRA website to see if you have mail or an amount owing: if you don’t, then make sure to delete the fraudulent communication you received.
You can call the CRA to verify whether they are trying to reach you.
This concludes our key takeaways from the webinar. For a comprehensive understanding and to explore more topics relevant to seniors during tax season, we highly recommend watching the full CRA session below.
Staying informed about your tax obligations and the benefits available to you is crucial. Utilize these resources to navigate tax season with confidence and ensure you're receiving all the credits and benefits you're entitled to!
For more information on all things taxes, visit canada.ca/taxes.
If you can’t find what you’re looking for online, the CRA can be reached at 1-800-959-8281.
If you are deaf, hard of hearing, or have a speech impairment and are registered with Canada Video Relay Service, you can call the CRA at 1-800-561-6393.
Happy Tax Season!
Bzzz,
Team Carebee
