In most cases, older taxpayers tend to have more complicated returns. But, they also have a few more ways to save on their tax returns. Here are eight ways for seniors to maximize their tax returns:
- You may be able to split eligible pension income with your spouse to help lower your tax bill.
- Every taxpayer 65 and older can claim the $6,720 age amount in 2012.
- Medical expenses can add up, so keep your receipts for items such as prescription glasses, hearing-aid batteries and travel health insurance.
- If you receive the Guaranteed Income Supplement (GIS), make sure you file by April 30 so your benefits are not interrupted.
- If you have a health issue, you may qualify for the Disability Tax Credit but you need Canada Revenue Agency approval before you can make the claim.
- The first $200 of charitable donations is worth a 15 per cent federal tax credit, and anything over is a 29 per cent federal tax credit. And there are also provincial savings.
- Your first $2,000 of qualifying pension income is eligible for a non-refundable tax credit.
- If one spouse has little or no income, you should be able to claim the spousal amount.
Remember too that if you turn 71 in 2013, you will need to convert your Registered Retirement Savings Plans (RRSPs) to Registered Retirement Income Funds (RRIFs) before the end of the year.
So if your return is a little more complex than it used to be, at least the extra benefits and supplements are some compensation.