With tax time just around the corner it is important that you are aware of the credits, deductions and grants that may be available to you.
For example pension income splitting, which was introduced in the 2007 tax year, is one of the key ways in which couples can reduce their overall taxes. Pension income splitting is not set up by your pension provider. Instead Pension income is split at tax time. By splitting pensions with a lower income spouse/partner the higher income earner is dropped into a lower tax bracket thus reducing a couples overall taxes.
The following websites have information that you may find useful.
For information about pension splitting go to www.cra-arc.gc.ca or CLICK HERE
Once you reach age 65 there is a Federal age tax credit. Go to www.cra-arc.gc.ca or CLICK HERE
For the Seniors Property tax grant for homeowners go to www.rev.gov.on.ca/en/credit/ptc or CLICK HERE
For the Ontario Sales Tax Credit go to www.rev.gov.on.ca/en/credit/stc or CLICK HERE
For the GST/HST credit go to www.cra-arc.gc.ca or CLICK HERE
Pensions that cannot be split include Old Age Security and the Guaranteed Income Supplement.
CPP payments are normally not split at tax time but can be split at source. If you wish to split CPP payments you should visit your nearest Service Canada office or call 1-800-277-9914