Four tax bumps seniors should look out for

Pay attention to the key points where taxes jump to a higher rate. Retirees can then try to smooth out income to stay just under the next highest tax bracket when possible.

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From the February/March 2013 issue of the magazine.

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Notes: Income up to $19,982 is shielded from federal taxes by the basic personal credit ($11,038), age credit for being 65+ ($6,854), and the maximum pension income credit ($2,000 from an employer pension, or if you’re 65 or older, from a RRIF or registered annuity). The 15% OAS clawback does not include the reduced income taxes on the clawed back amount.

5 comments on “Four tax bumps seniors should look out for

  1. My name is Marian Lee
    I begrudge having to pay someone to have my taxes done electronically. I am 87 & have prepared my taxes since I was 16 with no problems. I hope in the years to comethe Tax Forms will be available at the Post Office for Seniors like myself.

    Reply

    • Hi-I think the Tax Dept. is banking on the fact that we don't live to be 87 or 88-that's why everything is so youth-oriented today. We DON'T COUNT anymore. We are just a burden of payouts-OAS,CPP, etc.

      Reply

    • Tax forms were available earlier this week in two postal centres I saw…not the envelopes but all the forms. My father (83) mailed his on April 29 on available forms… are you complaining without actually looking? I am really not a big CRA fan, but feel that we should lob fire at them for the nasty stuff they do, not what they don't…

      Reply

  2. I think CRA is unfair in their treatment of RRIF minimums on withdrawls, why is there set minimums in the first place, isnt it our money that we have saved. I am like the majority of Canadians I do not have a government or union pension, all we have is what we have saved. Why doesent the government give uis a break on RSP/RIFF withwrawls why not treat them like they do dividend income rather than get fully taxed on withdrawls. I am 69 & still working! One way for the government to maintain their majority is start treating seniors a lot better!!

    Reply

  3. Yes, I rather think that it has finally dawned upon the government to punish seniors for staying alive. They'd far rather pay out a survivor benefit!

    Reply

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