Tax Cuts and Credits for Seniors

Every once in a while a bit of clarification is in order. In this blog we will look at a couple of urban myths out there when it comes to seniors. One is that there is a family tax cut for seniors and the other is that there is an adult fitness tax credit for seniors.

Let’s start with the family tax cut for seniors. To be fair, the federal Conservatives did have a family tax cut in place but it was only for families with children under the age of 18 which would pretty much preclude all seniors. The new Liberal government is looking to scrap that tax cut as part of their election platform. Other than that, no family tax cut for seniors.

The second myth is that there is a fitness tax credit for seniors. Again, this is just not so. The closest thing to this was a promise made by the Conservatives in the 2011 election campaign to implement an Adult Fitness Tax Credit. The Conservatives actually set up a panel on April 21, 2015 to design this Adult Fitness Tax Credit. This no doubt puffed to mush with the election call and subsequent downfall of the Harper government to the Trudeau Liberals.

So what do seniors have to look forward to in the near future? The 2015 Liberal Party election platform has promised to:

– Allow for no change to pension splitting for seniors.

– Enhance the Canada Pension Plan (CPP) in order to increase CPP benefits.

– Restore eligibility age for Old Age Security (OAS) and Guaranteed Income Supplement (GIS) to 65.

– Increase GIS for single low-income seniors by 10%.

– Introduce a new Seniors Price Index to ensure that OAS and GIS benefits keep up with seniors’ actual rising costs.

Let’s see what happens.

There you have it – information you can use. By all means connect with BP Tax office to review your tax situation.

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