Note these ben­e­fits and new ser­vices

The Glengarry News - - Money Matters -

Here are 11 of the most com­mon cred­its and ben­e­fits for se­niors. Pen­sion in­come split­ting

If you re­ceive a pen­sion, you may be el­i­gi­ble to split up to 50% of your el­i­gi­ble pen­sion in­come with your spouse or com­mon-law part­ner. Guar­an­teed in­come sup­ple­ment

If you re­ceive the guar­an­teed in­come sup­ple­ment or al­lowance ben­e­fits un­der the old age se­cu­rity pro­gram, you can re­new your ben­e­fit by fil­ing your re­turn by the fil­ing dead­line. Reg­is­tered re­tire­ment sav­ings plan

De­ductible RRSP con­tri­bu­tions can re­duce your tax bill. You have un­til De­cem­ber 31 of the year in which you turn 71 to con­trib­ute to your RRSP. Reg­is­tered dis­abil­ity sav­ings plan

This sav­ings plan can help fam­i­lies save for the fi­nan­cial se­cu­rity of a per­son who is el­i­gi­ble for the dis­abil­ity tax credit. RDSP con­tri­bu­tions are not tax de­ductible and can be made un­til the end of the year in which the ben­e­fi­ciary turns 59. Goods and ser­vices tax/har­mo­nized sales tax (GST/HST) credit

You may be el­i­gi­ble for the GST/HST credit, a taxfree quar­terly pay­ment that helps your off­set all or part of the GST or HST you pay. To re­ceive this credit, you must file an in­come tax and ben­e­fit re­turn ev­ery year, even if you did not re­ceive in­come. If you have a spouse or com­mon-law part­ner, only one of you can re­ceive the credit. The credit will be paid to the

per­son whose re­turn is as­sessed first. Med­i­cal ex­penses

You may be able to claim the to­tal el­i­gi­ble med­i­cal ex­penses you or your spouse or com­mon­law part­ner paid for you, your spouse or com­mon­law part­ner, or you or your spouse’s or com­mon-law part­ner’s chil­dren who were born in 1999 or later, pro­vided the ex­penses were made over any 12-month pe­riod end­ing in 2016 and were not pre­vi­ously claimed. This can in­clude amounts claimed for at­ten­dant care or care in an es­tab­lish­ment. Age amount

If you were 65 years of age or older on De­cem­ber 31, 2016, and your net in­come was less than $83,427, you may be able to claim up to $7,125. Pen­sion in­come amount

You may be able to claim up to $2,000 if you re­ported el­i­gi­ble pen­sion, su­per­an­nu­a­tion, or an­nu­ity pay­ments on your tax re­turn. Dis­abil­ity amount

If you, your spouse or com­mon-law part­ner or your de­pen­dent has a se­vere and pro­longed im­pair­ment in phys­i­cal or men­tal func­tions and meets cer­tain con­di­tions, they may be el­i­gi­ble for the dis­abil­ity tax credit (DTC).

To de­ter­mine el­i­gi­bil­ity, you must com­plete Form T2201, Dis­abil­ity Tax Credit Cer­tifi­cate and have it cer­ti­fied by a med­i­cal prac­ti­tioner.

Cana­di­ans claim­ing the credit can file on­line whether they have sub­mit­ted the form to the CRA for that tax year or not.

Fam­ily care­giver amount

If you are car­ing for a de­pen­dant with an im­pair­ment in phys­i­cal or men­tal func­tions, you may be able to claim up to $2,121 when cal­cu­lat­ing cer­tain non-re­fund­able tax cred­its. Non-re­fund­able tax cred­its re­duce your fed­eral tax. If the to­tal of the non-re­fund­able tax cred­its is more than your fed­eral tax, you will not get a re­fund for the dif­fer­ence. Pub­lic tran­sit amount

You may be able to claim the cost of monthly or an­nual pub­lic tran­sit passes for travel within Canada on pub­lic tran­sit in 2016.

For more in­for­ma­tion on top­ics and ser­vices of in­ter­est to se­niors, visit cra.gc.ca/se­niors. New and im­proved

This tax-fil­ing sea­son, many im­por­tant changes and im­prove­ments were made to ser­vices, ben­e­fits, and cred­its for Cana­di­ans. Here's what you need to know. Ben­e­fits and cred­its

Canada child ben­e­fit (CCB): The CCB is a taxfree monthly pay­ment made to el­i­gi­ble fam­i­lies

to help them with the cost of rais­ing chil­dren un­der the age of 18. The CCB might in­clude the child dis­abil­ity ben­e­fit and any re­lated pro­vin­cial and ter­ri­to­rial pro­grams. It re­places the Canada child tax ben­e­fit, na­tional child ben­e­fit sup­ple­ment and the univer­sal child care ben­e­fit.

El­i­gi­ble ed­u­ca­tor school sup­ply tax credit: El­i­gi­ble ed­u­ca­tors may be able to claim a 15% re­fund­able tax credit based on up to $1,000 of el­i­gi­ble teach­ing sup­plies bought dur­ing the tax year. New ser­vices

Ex­press NOA: This new ser­vice de­liv­ers an in­stant as­sess­ment re­sult mes­sage and pro­vides a no­tice of as­sess­ment di­rectly into the cer­ti­fied tax soft­ware the next day. To use the ser­vice, you must be reg­is­tered for on­line mail and file elec­tron­i­cally us­ing a cer­ti­fied tax soft­ware.

Ac­count alerts: As a fraud preven­tion mea­sure, this new ser­vice no­ti­fies you by email when an ad­dress has changed, bank­ing in­for­ma­tion for di­rect de­posit has changed, or if mail sent to you by the Canada Rev­enue Agency was

re­turned. You may reg­is­ter for this ser­vice through My Ac­count or MyCRA mo­bile app.

Link be­tween My Ac­count and My Ser­vice Canada Ac­count: You can now ac­cess these two ac­counts through a sin­gle sign-in ses­sion.

MyBen­e­fits CRA mo­bile app: You can use the CRA's new web-based mo­bile app to se­curely view your next ben­e­fit pay­ment dates and amounts, the sta­tus of your CCB ap­pli­ca­tion, up­date your mar­i­tal sta­tus, and change in­for­ma­tion about chil­dren in your care. En­hanced ser­vices

On­line mail: This ser­vice pro­vides you with the op­tion to sign up to re­ceive cer­tain CRA cor­re­spon­dence in your se­cure CRA My Ac­count in­stead of by pa­per mail. Through­out 2016 ad­di­tional types of cor­re­spon­dence were added to the on­line mail ser­vice, in­clud­ing ben­e­fit no­tices and slips, and in­stal­ment re­minders.

Com­mu­nity Vol­un­teer In­come Tax Pro­gram (CVITP): The CVITP helps Cana­di­ans with mod­est in­come and a sim­ple tax sit­u­a­tion by pre­par­ing their tax re­turns free of charge. This year, we are re­cruit­ing more or­ga­ni­za­tions and vol­un­teers to help ex­pand the pro­gram in more com­mu­ni­ties. Now more Cana­di­ans than ever can re­ceive help to do their taxes and en­sure they are re­ceiv­ing the cred­its and ben­e­fits they are el­i­gi­ble for.

Auto-file my re­turn: En­hance­ments to this ser­vice in­clude ex­tended log-in ses­sions so you can

stay logged into the ser­vice for a longer pe­riod than be­fore, more tax slips, and the use of the ser­vice for pre­vi­ous-year re­turns.

MyCRA mo­bile app: The MyCRA mo­bile app now al­lows you to up­date your mar­i­tal sta­tus and sign up for ac­count alerts. Other changes

In­come split­ting tax credit: The fam­ily tax cut has been elim­i­nated for the 2016 year and fu­ture tax years. How­ever, if you are re­ceiv­ing a pen­sion, you may be able to split your el­i­gi­ble pen­sion in­come with your spouse or com­mon-law part­ner to re­duce your taxes.

Chil­dren’s fit­ness tax credit: For 2016, the max­i­mum el­i­gi­ble fees in the year is re­duced from $1,000 to $500, but the ad­di­tional amount of $500 for chil­dren el­i­gi­ble for the dis­abil­ity tax credit has not changed. There­fore the max­i­mum credit is re­duced to $75 ($150 for a child el­i­gi­ble for the dis­abil­ity tax credit).

Chil­dren’s arts tax credit: For 2016, the max­i­mum el­i­gi­ble fees in the year is re­duced from $500 to $250, but the ad­di­tional amount of $500 for chil­dren el­i­gi­ble for the dis­abil­ity tax credit will not change. There­fore the max­i­mum credit is re­duced to $37.50 ($112.50 for a child el­i­gi­ble for the dis­abil­ity tax credit).

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.