When it comes to how you spend your free time, filing your income tax returns doesn't usually make the cut -- especially if you're 65 and older and enjoying your retirement.
But fear not, dear seniors. The Canada Revenue Agency (CRA) has shared some great tax filing tips to ensure you can file your taxes and swiftly return to the activities you truly enjoy.
And remember, filing an income tax and benefit return annually is important to ensure you receive any refund, benefit, or credit payments you may be entitled to.
Here's information from the CRA to get you started:
1. Scam-Proof Your Filing Experience
Understanding how and when the CRA contacts Canadians is crucial in distinguishing between genuine and fraudulent communications. Head to the Scam prevention and the CRA webpage for information to help you recognize the signs of a scam and learn about the ways that the CRA may contact you.
2. Embrace Online Filing for Efficiency
Make 2024 the year you shift to online filing. Explore NETFILE-certified tax software for a fast, secure, and user-friendly experience. With immediate confirmation of your tax return receipt, enjoy the perks of online filing, including:
- Auto-fill my return: Automatically fill in parts of your return with CRA-available information.
- Express NOA: View your notice of assessment immediately after processing.
Combine online filing with direct deposit for a potential refund in as little as eight business days.
3. Meet Charlie, Your Friendly Chatbot
When in doubt, turn to Charlie, the friendly chatbot on the CRA home page. Any questions or uncertainties during the filing process? Let Charlie guide you to the information you need.
4. Take Charge with My Account
This year, take advanage of My Account – the fastest and easiest way to manage your tax and benefit information. From viewing or changing your return to tracking file progress, My Account puts you in control.
5. Mark These Crucial Dates on Your Calendar
Stay on top of important dates:
- February 14, 2024: Benefits and credits for adults 65+ webinar.
- February 19, 2024: Online filing for the 2023 tax return begins.
- April 30, 2024: Deadline for most Canadians to file; also payment deadline for CRA dues.
- June 15, 2024: Self-employed tax return deadline.
6. Understanding Your Income Sources
As you retire or turn 65, various income sources may come into play. The CRA has shared the most common types of income you may start receiving when you retire or turn 65.
7. Maximize Your Returns: Don't Miss Out on Money
The CRA is not just about collecting taxes; it's about ensuring you receive entitled refunds, benefits, and credits. Learn about potential eligibility for:
- Guaranteed Income Supplement (GIS): A monthly payment for low-income Old Age Security pensioners.
- Tax credits and benefits: Explore opportunities to reduce your tax burden.
- Pension income splitting: You and your spouse or common-law partner may be able to jointly elect to split your eligible pension income if you meet all of the requirements.
- Claiming deductions, credits, and expenses: Explore eligible deductions to reduce the amount of tax owed. Consider the Canada caregiver credit for supporting a spouse or partner with physical or mental impairment.
8. Free Tax Help for You
If you need assistance and have a modest income with a simple tax situation, explore free tax clinics. Whether in-person or virtual, find out if you're eligible on the free tax clinics page.
Armed with these expert tips, seniors can confidently navigate the tax season, ensuring a hassle-free experience and unlocking the benefits they rightfully deserve.
