Seniors: Tax credits for people 60+

Are you 60+ and working? Are you 70+ and living in your own home or in a seniors' residence? Depending on your situation, there are tax credits you may be able to claim, such as the senior assistance tax credit or the tax credit for career extension. This page shows you what you need to know.

Betty (71) and George (73) live together in a private seniors' residence

Betty and her spouse George live together in a private seniors' residence. Betty is 71 and George is 73. Together, their family income is $35,000 and a large part of that goes toward paying their rent.

This year, Betty bought a walker and hearing aids and signed up for swimming lessons. Samantha, Betty and George's daughter, heard that there may be tax credits for seniors' activities and wonders if her mom could claim it for her swimming lessons. She also wonders if her parents are eligible for the tax credit for home-support services for seniors.

Samantha doesn't need to wonder anymore! If Betty and George meet the conditions, they can claim a number of credits, including the refundable tax credit for home-support services for seniors, the refundable senior assistance tax credit and the solidarity tax credit. Betty can even claim the refundable tax credit for seniors' activities for her swimming lessons and the refundable independent living tax credit for seniors for her walker and hearing aids.

Are you in the same situation as Betty and George? Here are the deductions and credits you can claim.
Q&A — Betty
  • What exactly is the senior assistance tax credit and what are the conditions for claiming it?

    The senior assistance tax credit is a way to help low-income seniors. You can receive it even if you don't claim it when you do your taxes. In Betty's case, she may get the credit if, at the end of the year, she lives in Québec and either she or George is 70+ and at least one them is a Canadian citizen or has a recognized residence status in Canada.

  • Who is the tax credit for home-support services for seniors for?

    The tax credit for home-support services for seniors is to help seniors 70+ pay for services they receive to stay in their homes. The credit is usually 35% of the eligible expenses you paid in the year, but may be less if your family income is higher than the limit. The credit is calculated differently depending on what kind of home you live in.

  • What does Betty have to do to get the tax credit for home-support services for seniors?

    To get the tax credit for home-support services for seniors, Betty needs to file Schedule J when she does her taxes. If she prefers not to wait, she can apply to get advance payments of the credit she's entitled to for the year before she does her taxes.

  • Betty's friend is 70 and owns the house he lives in. Can Betty's friend still claim the tax credit for home-support services for seniors?

    Yes. Betty's friend may be able to claim the tax credit for home-support services for seniors if he paid for one or more eligible services, such as:

    • housekeeping, grounds maintenance or snow removal services
    • personal care services and some meal services
    • nursing services
  • Are there are any tax benefits that Betty can claim once she turns a certain age?

    Yes. There are a few tax advantages reserved only for people of a certain age at the end of the year.

    For example, once you turn 60, you may be able to claim the tax credit for career extension for every year you earn eligible work income.

    Similarly, once you turn 65, you may be able to claim the age amount, the deduction for retirement income transferred to your spouse and, in specific cases, the grant for seniors to offset a municipal tax increase.

    Once you turn 70, you may be able to claim the following refundable tax credits:

    • the tax credit for home-support services for seniors
    • the independent living tax credit for seniors
    • the senior assistance tax credit
    • the tax credit for seniors' activities

    Note that there are other conditions you have to meet to get these tax benefits.

    Learn more
Titre de la section : Are you in the same situation as Betty? Here are some tools that can help you.

Danielle is a salaried employee and is turning 65 this year

Danielle is turning 65 this year and already receives a pension from her private retirement plan. She also earns $30,000/year working at a local bakery and her spouse, Nigel, only makes a bit of money.

Danielle recently received a letter from the Régie de l'assurance maladie du Québec (RAMQ) saying that she'll be automatically registered for Québec's public prescription drug insurance plan on her 65th birthday. The letter also explains that if she has access to a private plan (also known as a group insurance plan) offering basic prescription drug insurance at least equivalent to that provided by the RAMQ, she'll have to choose who she wants to cover her prescriptions.

Danielle isn't sure what to choose, so she contacts her private insurer. She learns that her private insurance only provides supplemental coverage, meaning that it can't be the first payer for prescription drugs. Since the private plan doesn't offer basic prescription drug insurance, Danielle will have to pay a premium under the Québec prescription drug insurance plan when she does her taxes.

Because she's turning 65, there will be other changes when she does her taxes for the year. If she meets the conditions, Danielle can claim the age amount and, because her eligible work income is more than $5,000, the tax credit for career extension. She may even be able to transfer up to half of her retirement income to Nigel!

Are you in the same situation as Danielle? Here are the deductions and credits you can claim.
Q&A — Danielle
  • If Danielle is still eligible for a private plan (also known as a group insurance plan) offering basic prescription drug insurance when she turns 65, can she choose to only be covered by the private plan?

    Yes. As soon as Danielle turns 65, the RAMQ will automatically register her for the Québec prescription drug insurance plan. However, if when she turns 65 she has access to a private plan offering basic prescription drug insurance, she can choose to cancel her registration for the RAMQ plan.

  • What conditions does Danielle need to meet to get the tax credit for career extension? To be eligible, Danielle needs to be 60+ and live in Québec at the end of the year. The tax credit is calculated on her eligible work income, which must be more than $5,000 for the year. To claim the credit, she'll need to fill out form TP-752.PC-V, Tax Credit for Career Extension, and file it when she does her taxes.
  • What is eligible work income under the tax credit for career extension?

    Typically, work income includes gross employment income and net business income. For workers between the ages of 60 and 64, the cap on eligible work income is $10,000, for a maximum tax credit of $1,500. The cap is $11,000 for workers 65+, for a maximum credit of $1,650. Note that the credit may be reduced if your eligible work income is more than a specific amount.

  • What does Danielle need to do to transfer her retirement income?

    Since Danielle was 65 at the end of the year and has a spouse, she and Nigel can agree to have part of her eligible retirement income included in his income (regardless of his age). To transfer an amount to Nigel, Danielle needs to fill out Schedule Q and file it when she does her taxes.

    Learn more