Eligible expenses
According to the tax credit website, you are eligible for safety Tax credit seniors if you tick these boxes
- The person applying must be 65 years of age or older by the year's end
- The person applying must live with an elderly relative or guardian within 24 months
- Not dependent on income
Moreover, Canadian government has also made eligible expenses related to making the home more accessible, including:
- Grab bars and related reinforcements around the toilet, tub, and shower
- wheelchair ramps, stair/wheelchair lifts, and elevators.
- certain renovations to permit first-floor occupancy or a secondary suite for a senior
- Handrails in corridors
- walk-in bathtubs
- wheel-in showers
- comfort height toilets
- widening passage doors
- lowering existing counters and cabinets
- Installing adjustable counters or cupboards
- light switches and electrical outlets placed in accessible locations.
- door locks that are easy to operate.
- lever handles on doors and taps, instead of knobs.
- pull-out shelves under counters to enable work from a seated position
- non-slip flooring
- a hand-held shower on an adjustable rod or high-low mounting brackets.
- Additionally, light fixtures throughout the home and exterior entrances
- swing clear hinges on doors to widen doorways
- The creation of knee space under the basin to enable use from a seated position (and insulation of any hot-water pipes)
- relocation of tap to the front or side for easier access
- hands-free taps
- motion-activated lighting
- touch-and-release drawers and cupboards.
- Automatic garage door openers
Health-related expenses
Health-related expenses are very essential as you grow old. As you age, medical expenses might become a significant portion of your spending. Any related expenses that you haven't previously paid for can be deducted from your income when filing your taxes.
You can deduct a wide range of medical expenses, including those for prescription drugs, doctor's visits, and assistive technology like hearing aids. When it comes time to submit your return, things like air conditioning to enhance the air quality in your house might also be considered a medical expense. Make sure you go through the Canada Revenue Agency's (CRA) complete list of medical expenses that are and are not tax deductible. Keep your receipts and statements after filing your taxes in case you need to provide evidence for any costs you claim.
Amount of pension income
As people age, they frequently quit working, which means that their income comes from either a private pension plan or a state pension plan like the Canada Pension Plan.
You are entitled to a credit of up to $2,000 if you have recorded qualified pension income on lines 11500, 11600, or 12900 of your tax return.
A pension or annuity payment you got for a pension or superannuation plan, a payment from an RRSP, or a payment from sharing your spouse's or common-law pension are all examples of eligible income. Looking into dividing or sharing your pension amount with your spouse or common-law partner can also be a smart move. For instance, you can transfer pension benefits if you're married or have a common-law spouse.
For more information and help you can always consult with a professional to help you sort out the pension income issue.
Tax Credit for Disabilities
You can apply for the Disability Tax Credit if you or someone you know has a disability and is 65 years of age or older (DTC). The purpose of this credit is to ease the burden of additional disability expenditures. Up to $8,870 can be claimed as the maximum disability payment in 2022.
Old Age Security (OAS) Pension
For Canadians 65 years of age and older, the Old Age Security (OAS) pension is intended to support you financially throughout retirement. It is often delivered to you as a monthly payment from the government and is typically based on how long you have resided in Canada as an adult. You could have to give the government some of your OAS pension back if your salary is higher than a specified threshold ($81,761 for 2022). The OAS Pension Recovery Tax, often known as the OAS Clawback, is what this is. Each year, a new threshold amount is established.
There are a few different ways to reduce the sum you must repay, for example:
- Divide your pension with your partner.
- Generating tax-free income through the use of a TFSA
- Avoid financial
How to keep yourself updated and not miss any Senior's home safety tax credits?
In this new modern society that is moving very efficiently and faster, you can take many measures to keep yourself updated and not miss any tax credit-related news. You can subscribe to online platforms or software that will keep you updated with the latest news. Furthermore, you can visit the Canada Revenue Agency (CRA) to get help from experts or to use auto-fill methods.
Conclusion
We have learned about the Seniors’ Home Safety Tax Credit on this blog. The Canadian government has also made eligible expenses related to making the home more accessible. As you age, medical expenses might become a significant portion of your spending. You can deduct a wide range of medical expenses, including those for prescription drugs, doctor's visits, and assistive technology like hearing aids. You are entitled to a credit of up to $2,000 if you have qualified pension income on lines 11500, 11600, or 12900 of your tax return. Looking into dividing or sharing your pension amount with your spouse or common-law partner can also be a smart move. You can apply for the Disability Tax Credit if you or someone you know has a disability.