When it comes to tax deductions and credits, there is a wealth of opportunities available to seniors and their adult children in Canada. At Alivio Downsizing, our primary mission is to provide compassionate and professional downsizing services. We understand that a smooth and successful transition involves not just physical aspects, but also considerations for your financial well-being.

In our pursuit of comprehensive support, we sought advice from Heather Holjevac, a highly respected financial planner and advocate for financial literacy. With Heather’s expertise, we bring you these insightful tips to help you navigate the world of tax deductions and credits.

Pension Income Tax Credit:
Seniors receiving eligible pension income can claim a federal tax credit of up to $2,000. This credit is an additional benefit, complementing other deductions and credits you may already qualify for. Maximizing this credit based on your income and individual circumstances can provide significant financial relief.

Disability Tax Credit (DTC):
If you or your adult children have a disability, you might be eligible for the Disability Tax Credit (DTC). The DTC is a valuable non-refundable tax credit that can be claimed on your income tax and benefit return. Depending on the extent of the disability, this credit can be worth up to $8,576 for the 2021 tax year. Understanding your eligibility criteria and navigating the application process is crucial, in assisting individuals with disabilities.

Medical Expenses Tax Credit:
Significant medical expenses can put a strain on your finances. However, you may be eligible for the Medical Expenses Tax Credit, which allows you to claim eligible expenses such as prescription drugs, medical devices, and specific medical procedures. It’s important to keep track of your medical expenses and consult with a financial planner to ensure you maximize this credit while alleviating some of the financial burden.

Home Accessibility Tax Credit:
Making modifications to your home to enhance accessibility for individuals with disabilities can be costly. The Home Accessibility Tax Credit provides financial relief by offering tax credits of up to $1,500. At Alivio Downsizing, we understand the importance of creating safe and accessible spaces. While we can help declutter your space, a financial specialist can guide you through the process of claiming this credit.

Caregiver Tax Credit:
As adult children caring for elderly or disabled parents, your dedication and support play an invaluable role in their well-being. The Caregiver Tax Credit recognizes this contribution by providing a credit worth up to $7,276 for the 2021 tax year. Understanding the eligibility criteria and consulting with a financial planner can help you make the most of this credit while acknowledging the efforts you put into caregiving.

RRSP Contributions:
Unused RRSP contribution room presents an opportunity to optimize your tax situation. Identifying available RRSP contribution room, contributing to your RRSP, and claiming deductions on your tax returns can help reduce your taxable income and potentially increase your tax refund. It’s important to speak with a financial planners who specialize in retirement planning and provide personalized guidance to ensure you make the most of your RRSP contributions.

Charitable Donations Tax Credit:
Supporting charitable causes not only benefits society but also provides potential tax benefits. Making charitable donations allows you to maximize the non-refundable tax credit available, which can be worth up to 29% of the donation amount, depending on your province or territory of residence. Collaborating with a financial planner can help you plan your charitable contributions effectively while optimizing your tax benefits.

While we do not provide financial services directly, we understand the importance of connecting you with professionals who can assist you in optimizing your tax situation. Through our network of trusted financial planners, we can refer you to professionals who specialize in tax deductions and credits. These professionals have the expertise to guide you through the intricacies of the Canadian tax system and help you identify opportunities that you may not be aware of.

At Alivio Downsizing, we are dedicated to supporting you throughout the downsizing process. Our collaboration with Heather Holjevac and our network of financial planners is just one example of how we go above and beyond to provide comprehensive assistance to our clients. Contact us today to learn more about our downsizing services and how we can connect you with professionals who can help you throughout the process.