Living in Retirement
Income tax
It is important to file an income tax return each year even if you have little or
not income. Filing an income tax return can give you access to government
benefits and credits, and programs that can put money in your pocket.
There are some great ways that you can save on your taxes by knowing a
few of the deductions and credits that are available.
A tax deduction is a cost that reduces your taxable income. For example, if
your income is $50,000 and you have a tax deduction for $10,000, then your
taxable income is now $40,000.
A tax credit is different in that it is a specific amount of money that is
deducted from the amount of tax you owe – not from the amount of income
you earn.
Some possible tax credits for seniors are:
Age amount
Pension income amount
Medical expenses
Disability tax credit
Family caregiver amount
Some Reasons to File Your Income Tax
Here are some examples of benefits you may
be eligible for if you file an income tax return:
GST/HST credit payments
The Old Age Security, Guaranteed Income
Supplement, Allowance, or Allowance for
the Survivor
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