TORONTO, March 10 /CNW/ -
- Starting with the 2007 tax return, seniors will be allowed to split
up to half of their eligible pension income with a spouse or common-
law partner. Income splitting will allow some seniors to take
advantage of a significant tax break. In the situation where the
lower-income spouse has very little income, the tax savings will be
- The Federal Government increased the age limit to 71 from 69 for
Registered Retirement Savings Plans.- Any senior receiving Guaranteed
Income Supplement (GIS) through Old Age Security should file on time
to ensure their benefits continue uninterrupted.
- If your spouse is unable to completely offset his or her age amount,
pension income and disability amount against tax payable, he or she
may transfer the unused portion to your return.
- If you live with your children, they may be able to claim a caregiver
amount for you if your income is less than $13,726.
- Pensions from foreign countries may be subject to special tax
treatment under the terms of a tax treaty. Always check with a tax
professional to find out if the pension you receive from a foreign
source is taxable in Canada.
- You may be able to split part of your CPP retirement benefits with
your spouse depending on how long you lived together when you were
contributing to the plan. This is an advantage if one senior is in a
higher tax bracket than the other. However, to do so, you must apply
to Human Resources & Social Development Canada. It cannot be done at
the time of tax preparation.
- Remember that there are tax credits available for federal or
provincial political contributions, medical expenses and charitable
donations. A tax professional can advise you as to what can be
claimed and the best way to ensure maximum deductions.
A local H&R Block tax professional, can talk about more tax tips for
About H&R Block Canada
H&R Block Canada prepares nearly two million tax returns annually, making
it Canada's leading tax preparation firm. Headquartered in Calgary, Alberta,
the company serves Canadian taxpayers in more than 1,000 offices across the
country. H&R Block Canada Inc. is a subsidiary of H&R Block, Inc., a
diversified company with subsidiaries providing a wide range of financial
products and services. Additional information about H&R Block Canada is
available at 1-800-HRBLOCK or visit www.hrblock.ca for more tax tips.
For further information:
For further information: Tina Quelch, Calador Communications, (416)