Credit for people living alone, amount granted due to age, credit for support for seniors, credit for home support, credit for natural caregivers… These are just some of the measures intended to reduce people’s tax bill. elderly.
“It is important to take some time out to get information,” says Anik Bougie, practice head, financial planning and taxation at Professionals’ Financial (fdp), in an interview.
She suggests that seniors go to the Canada Revenue Agency and Revenu Québec websites to get started. You are never better served than by yourself, she says. However, she advises against calling the tax authorities directly.
“Doing business with a tax preparer is usually money well invested,” continues Anik Bougie. Their work can allow the elderly person to obtain thousands of dollars in credits in certain cases. It’s worth getting good support from an accountant or a tax specialist,” she insists. For the less fortunate, she invites them to contact a free tax preparation service, offered by volunteers.
Natural caregivers
Generally speaking, there are numerous credits intended for the elderly and the names are similar, which adds to the confusion. This is especially true when it comes to caregivers. Three credits are available: two federal and one provincial, and they have very similar names.
These are the non-refundable federal credits for eligible dependents, the Canadian caregiver credit and the refundable caregiver credit from the Quebec government.
The Chair in Taxation and Public Finance at the University of Sherbrooke (CFFP) is doing a useful job by making available to the public a user-friendly tool that helps determine who is entitled to what in terms of tax credits for caregivers natural, elucidating the gibberish characteristic of tax measures.
Consult the tool of the Chair in Taxation and Public Finance at the University of Sherbrooke
“It’s a very interesting tool. It’s more directive. Instead of trying to understand the rules through eight paragraphs, the CFFP goes there in the form of questions and answers, indicates Anik Bougie. As soon as a question is asked, we answer it yes or no, and that takes us to the next step if we continue to be eligible based on the criteria. If it were up to me, such tools should exist for all credits. »
Among the criteria that determine eligibility for these non-refundable credits are the state of health of the elderly person, their age, their income, the relationship with the caregiver and whether or not they live with the caregiver. . The natural caregiver must not receive any remuneration from the person being cared for.
An example
Consider Alice, 60, who helps her elderly mother Margot, 82, who suffers from a disability and needs help with dressing, cooking and toileting. Margot, who has an income of $25,000 per year, lives alone.
In this case, Alice will be able to claim the Canadian caregiver credit of approximately $1,782, according to the CFFP tool. She will also be able to claim its Quebec counterpart, the tax credit for caregivers, but on condition of having helped her elderly mother Margot for 365 consecutive days, without respite. In which case, Alice would be entitled to a refundable credit of $1,309, again according to the tool.
Note that Alice is not eligible for the third credit, that for eligible dependents. She would have to live with Margot under the same roof and not have a spouse to be entitled to it.
Main credits for seniors
Refundable credit for home support (CIMAD) – Quebec
For those aged 70 and over, minimum credit of $133.20 for independent seniors renting, before the reduction when family income exceeds $65,700
Refundable credit for support for seniors – Quebec
For those aged 70 and over, maximum credit of $2,000 before reduction when income exceeds $25,755. Credit up to $4,000 for an individual and an eligible spouse.
Refundable credit for the renovation of multigenerational homes – Canada
Read the file “Tax season: what’s new this spring?” »
Tax credit for career extension – Quebec
It allows an individual aged 60 or over to benefit from a non-refundable tax credit of 14% of their work income exceeding $5,000.
Pension income splitting – Quebec and Canada
Individuals can allocate, for income tax purposes, up to 50% of their eligible pension income to their spouse, such as an annuity from a retirement plan or a payment from of a RRIF.
Amount granted for pension income – Canada
People aged 65 and over are entitled to a maximum amount of $2,000 when they declare eligible pension, retirement or annuity income. Quebec, for its part, pays a maximum non-refundable credit of $450 before reduction based on income.
Disability Tax Credit – Canada
The maximum value of the disability tax credit is $1,414. A medical certificate is required.
Non-refundable tax credit for serious and prolonged impairment – Quebec
The maximum credit value is $534. A medical certificate is required.
Refundable tax credit for expenses incurred by a senior to maintain their independence – Quebec
For those aged 70 and over, credit corresponding to 20% of costs incurred
Non-refundable home accessibility credit – Canada
For those 65 and over, up to a maximum of $3,000. A medical certificate is required.
Other measures not to forget
Housing Allowance Program – Quebec
Amount granted due to age – Canada
Non-refundable credit for people living alone – Quebec
Assistance program for seniors to partially offset an increase in municipal taxes – Quebec
Credit for medical expenses (refundable and non-refundable) – Canada and Quebec
Learn more
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- 25.5%
- Percentage of individuals in Quebec who filed an income tax return in 2020 who were aged 65 and over
Source: Quebec Tax Training Center
- 45.6%
- Percentage of taxpayers aged 65 and over who filed a tax return in 2020 who paid $0 in tax
Source: Quebec Tax Training Center