Canada Revenue Agency reminds seniors about benefits and credits
The Canada Revenue Agency is reminding seniors of the benefits and credits they are entitled to when filing their tax returns:
Age Amount – You can claim this amount if you were 65 years of age or older on Dec. 31, 2012, and your net income is less than $78,684. The maximum amount you can claim is $6,720.
Pension income amount – You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on your return.
Pension income splitting – If you’re receiving a pension, you may be eligible to split up to 50 per cent of your eligible pension income with your spouse or common-law partner.
Registered retirement savings plan – Deductible plan contributions can reduce your tax bill. You have until Dec. 31 of the year you turn 71 to contribute to your plan.
Registered disability savings plan – A registered disability savings plan is a savings plan to help families save for the financial security of a person who is eligible for the disability tax credit.
Goods and services tax/harmonized sales tax credit – You may be eligible for this tax credit which is a tax-free quarterly payment that helps individuals and families with modest incomes offset all or part of the goods, services and harmonized sales taxes that they pay.
Working income tax benefit – Working individuals and families with low income may be able to claim this refundable tax credit. This tax benefit includes a supplement for individuals who qualify for the disability amount. Eligible individuals and families may also apply for advance payments.
Disability amount – If you have a severe and prolonged impairment in physical or mental functions, and meet certain conditions, you may be eligible to claim the disability amount.
Public transit amount – You can claim the cost of public transit passes, such as a monthly or annual pass, for travel within Canada on public transit in 2012.
Medical expenses – You may be able to claim a non-refundable tax credit based on the cost of previously unclaimed medical expenses for any 12-month period ending in 2012.
Canada child tax benefit – If you are the primary caregiver for a child under the age of 18, this tax benefit may help you with the costs of raising the child.
Child disability benefit – You may be eligible for this tax-free benefit if you cared for a child under the age of 18 who is eligible for the disability amount.
Universal child care benefit – If you are the primary caregiver for a child under the age of 6, you may be eligible to receive this care benefit when you apply for the Canada child tax benefit.
The Canada Revenue Agency’s online services can be used to file your income tax and benefit return, make a payment, track your refund and more.
Sign up for direct deposit too! Your refund and any benefit or credit payments owed to you will be deposited directly into your account, putting your money into your pocket faster.
For more information, go to the Canada Revenue Agency website.
Fast facts about filing your income tax return online:
- Filing your return online generally means receiving your refund faster.
- Filing online is easy. Certified software packages and Web applications (some of which are free to use) guide you through the process, ensuring you don’t miss out on credits and benefits you may be eligible for.
- If you are already filing online, you no longer need a web access code to file your return online. Now, all you need is your social insurance number and date of birth.
- Filing online is secure. The Agency uses the same high level of online security used by Canadian financial institutions.
- File your income tax and benefit return on time to make sure there are no interruptions to your benefit and credit payments.
- Go to www.cra.gc.ca/getready and let us walk you through it step by step.
- If you have a modest income or simple tax situation, you can contact the Community Volunteer Income Tax Program.