Several tax advantages are offered for people aged 65 and over. Here are the.
If you're 65 and older, you're eligible for certain tax credits, explains Yannick Lemay, tax expert and spokesperson for H&R Block.
Non-refundable credit due to age
The maximum amount allowed by the federal government is $1,052 for a Quebec taxpayer, but the net income must be less than $98,308 (year 2023). Once your income reaches $42,335, the credit is gradually reduced.
The maximum provincial retirement credit is $506, it decreases from a net income of $38,945 and disappears completely from a family income of $58,220 (2023).
Other credits from age 70
Yannick Lemay emphasizes that from the age of 70 we have access to more tax advantages.
In Quebec, the Elderly Assistance Credit is refundable and can be up to $2,000 per year. To be eligible, income must be less than $64,515.
The refundable home support tax credit is calculated based on home support expenses incurred during the year. You are entitled to it if you live in an RPA and the rent can be used to cover certain expenses (meals, laundry, housekeeping, home care), but also if you are an owner for expenses such as personal and medical care at home, snow moving , cleaning windows, sweeping chimneys, etc. Are you a tenant in an apartment building? In this case, 5% of the rent is used to calculate the tax credit. In all cases, the maximum annual credit for a single independent individual is $7,215 (2023). The rate will gradually increase to reach 40% of eligible expenditure in 2026.
Finally, the tax credit for expenses incurred by a senior to maintain his or her independence concerns expenses related to the purchase, installation or rental of certain goods such as a walk-in bathtub, a walk-in shower, a walker or a hearing aid, etc.
Added to this is the Medical Expense Tax Credit, which is offered at the provincial and federal levels and is available to all taxpayers, not just seniors.
Unfortunately, the Senior Activities Tax Credit was eliminated in 2023.