Between our gradually receding winter and long-awaited spring is an unofficial season: tax season! Here are some changes to keep in mind and an info sheet to help you make sure you’re taking advantage of all the tax benefits that apply to your situation.Access the info sheet
Senior Assistance Tax Credit
This stems from the CAQ government’s first economic update. It is a benefit of $206 for a person aged 70 or older and $412 for senior couples. The amount of the benefit is gradually reduced at incomes above $23,280 for a single 70+ and $37,865 for couples, when one spouse is at least 70 years old. Above certain thresholds, it is no longer possible to receive this tax credit.
Tax Credit for Career Extension
The maximum tax credit is
- $1,500, if you were 60 or older, but under 65 on December 31, 2019
- $1,650, if you were 65 or older on December 31, 2019
If working income exceeds $34,610, the tax credit is reduced by 5% of the amount over $35,205. However, this reduction does not apply if you were born before January 1, 1951 and your tax credit does not exceed $600.
Refundable Independent Living Tax Credit for Seniors
The first $250 spent by a person aged 70 or older is not admissible. Above this new threshold, the credit amounts to 20% of eligible expenses.
Tax Credit for Caregivers
There are two parts to the Tax Credit for Caregivers. The first component is for anyone assisting a person aged 18 or older who has a severe and prolonged impairment in mental or physical functions and who requires assistance with a basic activity of daily living. The second component is for anyone who is helping a loved one aged 70 or older with whom they are living.
Guaranteed Income Supplement
As of December 1, 2017—after a long battle led by the Réseau FADOQ!—recipients are automatically enrolled. However, people who turned 64 before December 1, 2017, must complete the required form, if they have not already done so, to receive GIS and be placed on the lifetime list.
The main sources of income in retirement
- Additional pension plans
- Québec Pension Plan
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
Unless they have worked in another province, Quebecers do not have access to the Canada Pension Plan retirement pension. However, all Canadians are eligible, within certain parameters, for Old Age Security.
In addition, you must consider as income all amounts received as severance pay and lump sum payments when you withdraw money from a pension plan.
Pay instalments, if requested, to reduce your tax liability.
Contribution to the Québec Drug Insurance Plan:
You MUST enroll in the public plan and pay the premium if you do not have private insurance.
The amount of the withholding tax may be reduced, depending on the tax deductions you are entitled to.
You must complete the T1248 form. Information about your residency status (Appendix D).
Useful contact information
- International Social Security Agreements | 1 800 454-8731
- Old Age Security (OAS), Allowance for the Survivor, Canada Pension Plan (CPP) Retirement Pension, Guaranteed Income Supplement (GIS), Allowance Program | 1-800-277-9915
- Service Canada | 1 800 959-7383 | Website
- Tax information for seniors | Website
- Québec Pension Plan Retirement Pension, Quebec Pension Plan Survivor Benefits | 1 800 463-5185
- Revenu Québec | Website
Québec City area: 418 659-6299
Greater Montréal: 514 864-6299
I need help!
Struggling to apply all the tax measures and can’t afford to hire a professional? Don’t miss out on the deductions and credits you are eligible for. Take advantage of the free tax assistance service offered by hundreds of community organizations and thousands of volunteers across the province. To find out which organization near you offers this service, contact your local Volunteer Centre (Centre d’action bénévole).
Many regional and local branches of the financial and consumer education group known as ACEF (Associations coopératives d’économie familiale) organize tax clinics for seniors.
If you do not qualify for this service, don’t hesitate to contact a professional. The Réseau FADOQ also offers a discount on the UFile tax program.
This article and the info sheet were updated on March 11, 2021.
Source : Réseau FADOQ