Tax Relief for Seniors | Mar 14, 2020
We delivered a number of tax-saving initiatives to help seniors keep more of their hard-earned money in their pockets.
Here are a few tax benefits that you can claim:
Increasing the Age Amount:
While in government, Conservatives increased the Age Amount by $2,000 to help low and middle-income seniors keep more money to meet their needs. Based on these increases and adjustments for inflation, the Age Amount allows seniors to claim up to $7,494 on their 2019 tax return, depending on the individual’s net income.
Pension Income Splitting:
The previous Conservative government introduced pension income splitting to help ease the tax burden and deliver fairness for Canadian pensioners.
Generally, each individual Canadian pays taxes on their full income earned. Pension income splitting allows any Canadian resident who receives qualifying pension income to allocate to their spouse (or common-law partner), with whom they reside, up to one-half of that income. By doing so, a pensioner and their family can dramatically reduce their tax load.