Ontarians who are 65 years or older have unique tax considerations when filing their tax return each year. Read more to learn about tax credits and deductions you might be eligible for.
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What tax credits can seniors claim in Ontario?
If you’re 65 or older, you might be eligible for certain tax credits when you file your tax return. You may be eligible for:
- Age amount – This is a non-refundable tax credit for Canadians who were 65 years or older in the year for which they file their return. You claim this on line 30100 of your return. The age amount can only be claimed if your net income is below a specific threshold. There is also a provincial age amount that is calculated at the same time as the federal one. Learn more about the age amount.
- Pension income amount – If you report eligible pension, superannuation, or annuity payments on your return, you may be able to claim up to $2,000 towards the pension income amount. This is a non-refundable federal tax credit you can claim on line 11500, 11600, or 12900 of your return, depending on whether you are claiming pension, superannuation, or annuity payments. Learn more about the pension income amount.
- Home accessibility tax credit (HATC) – The HATC is a federal non-refundable tax credit available to seniors who make renovations to their home to make it more accessible. This tax credit is available to eligible Canadians who are 65 years or older, or who already qualify for the Disability Tax Credit. Total eligible expenses cannot be more than $20,000. Learn more about the HATC.
- Ontario senior homeowners’ property tax grant (OSHPTG) – The OSHPTG is a provincial refundable tax credit for seniors aged 64 and older who pay property taxes and have low to moderate incomes. You must apply for the OSHPTG annually using the ON-BEN form, when you file a tax return each year. If you have a spouse or common-law partner, only one of you can claim this grant. Learn more about the OSHPTG.
There are two different types of tax credits — refundable and non-refundable. Refundable tax credits contribute to a refund or may be paid to you in amounts through the year, such as the GST/HST credit. Non-refundable tax credits reduce the tax you owe, but don’t contribute to a refund. The age amount and pension amount are both non-refundable, for example. Learn more about tax credits and deductions.
What other considerations are there for seniors at tax time?
There are other tax credits available for Canadians, relating to caregiving, disability and medical expenses. Many seniors may be eligible for these tax credits, however, they are not exclusive to Canadians over the age of 65.
- Claiming the disability tax credit (DTC) – The disability tax credit is a non-refundable tax credit for people with physical or mental impairments. The DTC qualifies you to claim the disability amount on your tax return. You must apply for the disability tax credit. This includes completing Form T2201 and having a reference from a medical practitioner. Learn more about how the disability tax credit works.
- Claiming medical expenses – If you paid for eligible medical expenses that have not been reimbursed, you can claim these on your tax return. The way you claim these may be different depending on whether you also have the disability tax credit (DTC). Learn more about claiming medical expenses.
Find out what benefits you may qualify for using the Benefits Finder.
Can you share tax credits with your spouse?
If your spouse or common-law partner qualifies for certain tax credits, but doesn’t need the whole amount to reduce the tax they owe to zero, you may be able to claim all or part of their unused credits for the:
- age amount
- disability amount
- pension income amount
- tuition, education and textbook amounts
You may be eligible to split some of your pension income with your spouse or common-law partner:
- Income that qualifies – Sources that are eligible for the pension income amount.
- Income that doesn’t qualify – Old Age Security (OAS) and Canada Pension Plan (CPP) payments.
Learn more about pension income splitting.
What are tax considerations for caregivers?
If you are a caregiver for a family member with a disability or illness you may be able to claim:
- Caregiver credit – The Canada caregiver credit is a non-refundable tax credit available to individuals who support their spouse or common-law partner with a physical or mental impairment. Learn more about the Canada caregiver credit.
- Amount for an eligible dependant – If you’re a single taxpayer, you may be able to claim this tax credit for an eligible dependant. The amount of the tax credit is reduced by the dependant’s net income. The amount is equal to the tax credit you would claim if you had a spouse or common-law partner.
You must support and live with the dependant in your home. The dependant must be your parent or grandparent, or your child, grandchild, brother or sister who is either under age 18, or mentally or physically impaired. Even if you have more than one dependant, each household can only claim this amount once.
Be aware that the tax rules discourage multiple claims for the same person:
- If you make a claim for an eligible dependant, no one else can claim the amount for infirm dependants or the caregiver amount for the same dependant.
- If you file an eligible dependant claim, any claim you make for the caregiver amount will be reduced when it’s for the same dependant.
Save in an RDSP
If you’re caring for someone with a disability under age 59, you can open a Registered Disability Savings Plan (RDSP). The government created this savings plan to help parents and others save for the long-term financial security of a disabled person.
Summary
If you are 65 or older, there are a few tax credits you may be able to claim, including:
- Federal tax credits for seniors include the age amount, pension income amount, and home accessibility tax credit.
- Seniors in Ontario may be able to claim the Ontario senior homeowners’ property tax grant.
- You may be eligible for the disability tax credit, the Canada caregiver amount, or to claim medical expenses.
- If you are married, you may be able to share tax credits with your spouse. You may also be able to split some of your pension income.
