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Tax season | Support for seniors



Ottawa and Quebec have enhanced a series of measures intended for the oldest among us. Overview.

Improvement of the old-age pension

The federal government has increased the Old Age Security (PSV) pension by 10% for those aged 75 and over since July 2022. For those who receive the full PSV, the improvement represents approximately $800 per year. The PSV is taxable.

“The measures for seniors affect many people with the aging population,” says Luce Morin, CPA, owner of Activ accounting and tax services, in Lachine. About one-third of the returns it prepares concern people aged 65 and over.

Assistance for seniors: $2,000 for people aged 70 and over

The Legault government has once again improved the refundable credit for the support of seniors in 2022, increasing it from $400 to $2,000 for taxpayers aged 70 and over. For a couple of the same age, the maximum credit is $4,000. The credit is calculated based on family income. It decreases from $39,350 for a single person and $79,350 for a couple. It disappears when the income of a single person reaches $64,195 and $119,350 for a couple.

For example, a person earning $60,000 will be entitled to $420.25. A couple made up of two seniors aged 70 and over who declare a family income of $100,000 will receive $967.50.

According to the Chair in Taxation and Public Finance at the University of Sherbrooke, 320,000 additional households will now be entitled to the enhanced credit. Could this be your case?

Note that the credit will no longer be indexed in the future.

Home support: more generous

The refundable tax credit for home support for seniors (CIMAD) gives people aged 70 and over the possibility of paying part of their cost of occupancy (rent + services) in a private residence for seniors (RPA). CIMAD is also designed to help members of the third age to live in their own house or apartment.

The credit is particularly generous for non-autonomous people.

In 2022, the government improves the credit rate, but incorporates more penalizing credit reduction methods based on income. On the net, seniors receive more, especially those with low incomes.

The maximum eligible expenses are $19,500 for an independent person and $25,500 for a non-autonomous senior.

Credit, which was 35%, increases to 36% in 2022. It will increase by 1 percentage point per year to 40% in 2026.

Before 2022, the non-autonomous person was not subject to a reduction in this tax credit, regardless of their income. This will no longer be the case from 2022, but the credit reduction only applies to the enhanced portion of the credit. So little impact.

For the person considered to be independent, who was already subject to a reduction in the credit if he earned good income, the reduction becomes greater as of 2022 if he has an income greater than $100,000.

“The ceiling for rents, which was $600 per month, which was not a lot, now goes to $1,200 per month,” underlines Luce Morin.

Let’s consider a 72-year-old independent person, living alone in an apartment at more than $1,200 per month and declaring an income of $50,000. She will receive a credit of $259.20 in 2022 instead of $126 in 2021. Enough to absorb a fraction of the rent increase!

To obtain the CIMAD, one completes Appendix J of the provincial income tax return. You can receive advance payments by submitting form TPZ-1029.MD.7.

It should be noted that the Legault government, after having increased the credit for support for seniors up to $2,000, took the opportunity to abolish the credit for seniors’ activities as of 2023. So, this spring, for the last time, you can take advantage of this credit of a maximum value of $40.

Home Accessibility: Double Hit

Climbing the stairs has become difficult for you? Are you planning to build a bedroom with bathroom on the ground floor? Good news, the federal government has doubled the credit for home accessibility for people aged 65 and over and people with disabilities. As of 2022, the amount of eligible expenses increases from $10,000 to $20,000. The maximum credit doubles, from $1,500 to $3,000.

Tax tip: the sums incurred to improve the accessibility of your home can be deducted twice in the income tax return: once to determine the tax credit mentioned above and a second time as medical expenses.

This would be the case, for example, for expenses incurred for the side door of a therapeutic bath or the installation of a mechanized stairlift, according to information provided by the Center québécois de formation en taxation (CQFF).

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