6.1 Old Age Security and Canada Pension Plan
General Information and Contacts

To get information about any benefit under the Old Age Security (OAS) program or Canada Pension Plan (CPP), contact Human Resources and Social Development Canada (HRSDC) at the number below. Please have ready either the number that appears on your OAS or CPP payment, your Social Insurance Number (SIN), or the number on your Old Age Security Card.
Toll-free English: 1-800-277-9914
Toll-free French: 1-800-277-9915
TTY Toll-free: 1-800-255-4786
Website: www.canadabenefits.gc.ca

Old Age Security

Old Age Security provides a modest pension at age 65 if you have lived in Canada for at least 10 years. If you are a low-income senior, you may be eligible for other benefits as early as age 60.

Basic Old Age Security

To qualify for the basic Old Age Security (OAS) pension, you must:

• be 65 years of age or over, and
• be a Canadian citizen or a legal resident of Canada on the day before the application is approved, and
• have lived in Canada at least 10 years after reaching age 18.

If you don’t live in Canada, you must have been a Canadian citizen or legal resident of Canada on the day before the date you left Canada and have lived in Canada at least 20 years after age 18. You do not have to be retired to receive the basic OAS pension, but you must apply to get it. The OAS basic pension is taxable income.

Income Supplements for Seniors

There are benefits available to seniors living in Canada who have a low or modest income. On top of the basic Old Age Security, low or modest income seniors may also be entitled to the Guaranteed Income Supplement (GIS). In addition a spouse or common-law partner between the ages of 60 to 64 of a GIS recipient, may be entitled to the “Allowance” or to the “Allowance for the Survivor”.

Guaranteed Income Supplement

The Guaranteed Income Supplement (GIS) provides additional money on top of the Old Age Security (OAS) Pension to low-income seniors living in Canada. If you have little or no income besides your OAS basic pension, you may be able to get a monthly Guaranteed Income Supplement (GIS). The amount of this extra payment is based on your annual income, or the combined annual income of you and your spouse or common-law partner.

You must apply for this benefit and renew it each year, either automatically by filing an income tax return by April 30 each year, or by filling out a renewal form. The GIS benefit is not taxable income, although it is included in the calculation of net income, which is used in determining eligibility for a number of income tested benefits.

Allowance and Allowance for the Survivor

The monthly Allowance is based on your income and that of your spouse/common-law partner. The Allowance for the Survivor is based solely on the survivor’s income. It is designed to recognize the difficult circumstances faced by many survivors and by couples living on a single pension.

To qualify for the Allowance, you must:

• be between 60 and 64 years of age, and
• be a Canadian citizen or a legal resident of Canada on the day before the application is approved, and
• have lived in Canada at least 10 years after reaching age 18.

To qualify for the Allowance for the Survivor, you must:

• meet the criteria for the Allowance, and
• be a widowed person.

You must renew the Allowance or Allowance for the Survivor each year, either automatically by filing an income tax return by April 30, or by filling out a renewal form. The Allowance and the Allowance for the Survivor benefits are not taxable income.

The Allowance stops when:

• the client reaches age 65
• the client dies
• the spouse/common-law of the Allowance recipient ceases to be eligible for GIS
• the client becomes voluntarily separated or divorced
• either spouse/common-law has been absent from Canada for a period of more than six months, excluding the month of departure.

The Allowance for the Survivor stops when:

• the client reaches age 65
• the client dies
• the client ceases to be a widowed person (remarries or cohabits in a conjugal relationship for one year)
• the client has been absent from Canada for a period of more than six months, excluding the month of departure.

For more information on the Old Age Security Program, contact Human Resources and Social Development Canada.

Canada Pension Plan

The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family against the loss of income due to retirement, disability and death.

With very few exceptions, every person in Canada over the age of 18 earning a wage or salary must pay into the CPP. You and your employer each pay half of the contributions. If you are self-employed, you pay both portions. The CPP is also portable, so that even if you move from one job to another, you continue to contribute to the CPP and build up future credits.

You do not make contributions if you are receiving a CPP disability or retirement pension. At age 70, you stop contributing even if you have not stopped working.

The CPP operates throughout Canada, although the province of Quebec has its own similar program, the Quebec Pension Plan (QPP). The CPP and the QPP work together to ensure that all contributors are protected.

The CPP pays retirement pensions, survivor benefits, children’s benefits, disability benefits and a lump-sum death benefit. You must apply for all CPP benefits. They are not sent automatically. It is important to note that all CPP benefits are taxable income and must be declared on your income tax form each year. Taxes on CPP benefits are not deducted at the source (federal government) unless you request monthly tax deductions.

Retirement Pension

Your CPP retirement pension is designed to replace about 25 percent of the earnings on which you paid into the plan. The actual amount you receive is based on how much and for how long you contributed to the Plan, as well as the age at which you choose to begin receiving the pension: age 60 at the earliest,
or age 70 at the latest.

As a rule, you begin receiving your CPP pension the month after your 65th birthday. If you choose to take it before then, the amount would be smaller; if you take it after, larger— by 0.5 percent per month started before or after your 65th birthday (or 6 percent per year). That adjustment is permanent: if you choose to start your CPP retirement pension early, it will not be recalculated once you reach 65.

In order to take your CPP retirement pension before age 65, you must stop work or work for earnings below a specified level of income for a period of time.  Those aged 65 or more are exempt from this requirement. Once you begin receiving your CPP pension, you can work as much as you want without affecting your pension payment. However, you cannot contribute anything further to CPP on those earnings.

Disability Benefits

To receive a CPP disability benefit, a contributor must apply in writing and:

• have made sufficient contributions to the plan
• must be disabled according to the terms of the CPP legislation
• be under age 65, and
• not be in receipt of the CPP retirement pension.

Survivor Benefits

The CPP death benefit is a one-time, lump-sum payment made to the deceased contributor's estate. If there is no estate, then the person responsible for the funeral expenses, the surviving spouse or common-law partner or the next of kin may be eligible to receive this payment, in that order.

The CPP survivor's pension is paid to the person who, at the time of
death, is the legal spouse or common-law partner of the deceased contributor. If you are a separated legal spouse, and there is no co-habiting common-law partner, you may qualify for this benefit. If your deceased same-sex common-law partner contributed to the CPP, you could be eligible for survivor's benefits if the contributor died on or after January 1, 1998.

The Canada Pension Plan children's benefit is paid to the natural or adopted child of the deceased contributor, or a child in the care and control of the deceased contributor at the time of death. The child must be either under age 18, or between the ages of 18 and 25 and attending school full-time at a recognized institution.

Pension Sharing

Spouses or common-law partners can share their CPP retirement pension(s), which may result in tax savings.

As spouses in a continuing marriage or common-law relationship, you may apply to receive an equal share of the retirement pension or pensions earned during the years you were together. You must both be at least 60 years old.

Child Rearing Drop-out Provision

The CPP has several provisions built into the plan to protect your benefit for periods of low earnings, such as the Child Rearing Drop-out Provision.

Months of low or zero earnings spent caring for a child under the age of seven may be excluded from the calculation of your pension. This ensures that reduced earnings during the first seven years of your child's life will not result in lower future pension benefits. It is important to note that you do not apply for a Child Rearing Drop-out until you apply for a CPP benefit.

Credit Splitting

The CPP recognizes that in a legal marriage or common-law relationship, both spouses or common-law partners share in the building of their assets and entitlements, including CPP pension credits.

When a relationship ends, the CPP pension credits which the couple built up during the time they lived together can be divided equally between them. This division is called "credit splitting". Credits can be split even if one spouse or common-law partner did not pay into the CPP. When your relationship ends, you can apply for Credit Splitting.

For more information on the Canada Pension Plan, contact:
Human Resources and Social Development Canada:
Toll-free English: 1-800-277-9914
Toll-free French: 1-800-277-9915
TTY Toll-free: 1-800-255-4786
Website: www.hrsdc.gc.ca/en/gateways/topics/cpr-gxr.shtml

Information For Common-Law Partners

Legislative changes to the Old Age Security (OAS) program and the Canada Pension Plan (CPP) extend benefits to persons living in same-sex common-law relationships.

As of July 31, 2000, same-sex common-law partners have the same benefits and obligations as opposite sex common-law partners. "Common-law partners" is defined as two people, regardless of sex, who have lived together in a conjugal relationship for at least one year. Common-law partners have to sign a declaration and provide evidence, such as joint tax returns, wills or insurance policies, to prove they live together in such a relationship.

Direct Deposit

You can arrange to have the government deposit your CPP and OAS benefits (including GIS, Allowance and Allowance for the Survivor) directly into your bank or credit union account each month. This assures your deposit will be on time, without the risk of paper cheques being lost, stolen or damaged.

You can make all the arrangements for direct deposit over the phone. You will need to give the full number of the account where you want your payment deposited (that number can be found on the bottom of one of your cheques for that account). If you don’t have a chequing account, officials at your banking institution can give you the information.

To ask for direct deposit, simply call one of the numbers below:
Toll-free English: 1-800-277-9914
Toll-free French: 1-800-277-9915
TTY Toll-free: 1-800-255-4786

International Social Agreements

If you have lived or worked in another country with which Canada has a social security agreement, you may be able to get pension or other social security benefits from Canada or abroad.

For more information on the entitlements for a particular country or for help in applying for Canadian and/or foreign social security benefits, call:
Toll-free English: 1-800-277-9914
Toll-free French: 1-800-277-9915
TTY Toll-free: 1-800-255-4786
For callers outside continental
North America: 613-957-1954

International Operations
Income Security Programs
Human Resources and Social Development Canada
Ottawa ON K1A 0L4
Website: www.hrsdc.gc.ca/asp/gateway.asp?hr=en/isp/ibfa/intlben.shtml&hs=sya

Canadian Government Annuities

The Canadian Government Annuities Act began on September 1, 1908. Canadians of modest income could buy deferred or immediate annuities, either individually or through an employer pension plan. By guaranteeing payment, competitive yields, and paying all of the costs of taking care of these annuities, the government tried to encourage people to save for retirement. Changes brought on by the Old Age Security Act (introduced in 1952) and the Canada and Quebec pension plans (introduced in the 1960s) resulted in a drop in sales. In 1975, the government stopped the sale of Government Annuities.

The Annuities Branch of Human Resources and Social Development Canada, located in Bathurst, New Brunswick, currently administers 100,000 Government Annuity contracts, of which 7,000 have not yet matured. For more information, please contact:
Canadian Government Annuities Branch
Human Resources and Social Development Canada
PO Box 12000
Bathurst NB E2A 4T6
Toll-free: 1-800-561-7922
Fax: 506-548-7428
Website: www.hrsdc.gc.ca/en/gateways/topics/gzr-gxr.shtml

6.2 Guaranteed Annual Income System

The Guaranteed Annual Income System (GAINS), administered by the Ontario Ministry of Revenue, ensures a guaranteed minimum income for Ontario senior citizens by providing monthly payments to qualifying pensioners.

Eligibility

You are eligible to receive GAINS payments if:

• you are age 65 or older and receive the full or partial federal Old Age Security (OAS) andthe federal Guaranteed Income Supplement (GIS)
• you are and have been a permanent resident of Ontario for the past 12 months or you previously lived in this province for a total of 20 years after the age of 18, and
• your total income from all sources is below the level guaranteed by the province.

Effective July 2000, you are also eligible to receive GAINS payments if you are a recipient of OAS and GIS benefits under the federal International Social Security Agreement, have ten or more years of Canadian residency and meet requirements b) and c).

How the Program Works

If you currently receive a full or partial OAS pension plus the GIS, you do not have to apply for GAINS. The specific amount of GAINS benefit is directly linked to the amount of your GIS monthly payments. A GAINS benefit is only paid when total income, including OAS, GIS and all other sources of income, falls below the annual level guaranteed by the province. The GIS and GAINS benefit year begins each July.

Most seniors will automatically have their GIS entitlement renewed from information included in their current income tax and benefit return. In some situations, you may still require a renewal application to inform Human Resources and Social Development Canada of the amount of income that you received in the prior calendar year.

Method of GAINS Payment

The Ministry of Revenue will automatically mail you a cheque for your GAINS payment around the 25th day of each month, or deposit it directly into your bank account, if you have arranged for direct deposit payment for your OAS/GIS.

Amount of GAINS Payment

A GAINS payment is based on your reported income as an individual or combined income as a married couple or common-law partnership. The GAINS payment may increase or decrease along with changes to either your income or marital status. The GAINS benefit is not taxable income, although it is included in the calculation of net income, which is used in determining eligibility for a number of income-tested benefits.

Ministry of Revenue
Information Centre
Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
TTY Toll-free: 1-800-263-7776
Website: www.rev.gov.on.ca/english/credit/gains/

Ministry of Revenue
Client Accounts and Services Branch
PO Box 624, 33 King St. W.
Oshawa ON L1H 8H5

6.3 Private Pensions, Savings and Retirement Planning

Public pensions (Old Age Security and Canada Pension Plan) provide a modest base upon which to build additional, private savings for retirement. Listed below are some professional associations with Websites and publications to help you learn more about retirement planning and investment (adapted from the Human Resources and Social Development Canada Income Security Programs Website www.hrsdc.gc.ca/en/gateways/nav/top_nav/program/isp.shtml.

Advocis
The Financial Advisors Association of Canada

Advocis is the professional membership association of financial advisors. Advocis members provide financial services including financial planning, estate planning, tax preparation, tax planning, and consultation on employee group benefits, pensions and retirement plans. For more information look under “Consumer
Info” at www.advocis.ca

Advocis
The Financial Advisors Association of Canada
350 Bloor Street E., 2nd Floor
Toronto ON M4W 3W8

Toll-free: 1-800-563-5822
Phone: 416-444-5251
Fax: 416-444-8031
E-mail: info@advocis.ca
Website: www.advocis.ca

Canadian Bankers Association

The Canadian Bankers Association (CBA) is a professional industry association representing Canada's chartered banks. This bilingual site contains information on a variety of financial matters, including a brochure on Planning for Retirement. For more information:
Toll-free: 1-800-263-0231
Website: www.cba.ca

Canadian Life and Health Insurance Association

The Canadian Life and Health Insurance Association (CLHIA) represents most of Canada's life and health insurance companies. The CLHIA’s Consumer Assistance Centre provides general information about life and health insurance products and companies. For more information:
Toll-free English: 1-800-268-8099
Toll-free French: 1-800-361-8070
Website: www.clhia.ca

Canada Saving Bonds and Canada Premium Bonds

Canada Savings Bonds and Canada Premium Bonds are secure investments you may wish to include as part of your financial plan. Available from October to April 1st of each year they can be held on their own, as part of a retirement savings or income plan. For information on Canada Savings Bonds and other savings products from the Government of Canada:
Toll-free: 1-800-575-5151
TTY Toll-free: 1-800-354-2222
Website: www.csb.gc.ca

Ontario Savings Bonds

Ontario Savings Bonds (OSB), which are backed 100 percent by the Province, can only be purchased by Ontario residents. All OSBs can be held in self-directed Registered Retirement and Registered Education Savings Plans. The bonds are available at banks, trust companies, credit unions, caisses populaires, Province of Ontario Savings Offices and investment dealers. They are also available for purchase through the Internet and through the toll-free BOND telephone line.
Toll-free: 1-888-212-BOND (2663)
Website: www.ontariosavingsbonds.com

Office of the Superintendent of Financial Institutions

The Office of the Superintendent of Financial Institutions regulates federally administered private pension plans. The Pension section of their Website includes a Pension Guide for Members of Federally Regulated Private Pension Plans which contains useful information about pension plans in Canada.
Toll-free: 1-800-385-8647
Website: www.osfi-bsif.gc.ca

Online Life Event Bundle “Getting Ready to Retire”

The Ontario government is bundling information and services around key life events, such as “Getting Ready to Retire”. Each bundle brings together in one place everything on the subject. From this site, you can find information on things you need to know and quick links to forms you might need including, OAS, CPP, International Benefits, Veterans’ Pension, GAINS, Ontario Drug Benefit Program, Housing and other resources.
For information, visit the “Life Events” section at the government of Ontario Website at www.rev.gov.on.ca/english/credit/gains/ or a ServiceOntario Centre, or call the Citizens’ Inquiry Bureau at 1-800-267-8097.

6.4 Financial Services

Financial Services Commission of Ontario

The Financial Services Commission of Ontario (FSCO) regulates insurance, pensions, credit unions, caisses populaires, co-operatives, mortgage brokers, and loan and trust companies.

If you have a complaint about a financial institution or salesperson in one of the Financial Services Commission's regulated sectors, you may contact the FSCO for assistance.

The FSCO also produces a number of useful resources for consumers. The FSCO also licences insurance agents and mortgage brokers. You can check if an agent or broker is licensed on FSCO’s Website at www.fsco.gov.on.ca

For more information about how to register a complaint, or to order publications, contact:
Financial Services Commission of Ontario
5160 Yonge St., PO Box 85
Toronto ON M2N 6L9

Toll-free: 1-800-668-0128
Phone: 416-250-7250
TTY Toll-free: 1-800-387-0584
Fax: 416-590-7070
Website: www.fsco.gov.on.ca

Ontario Securities Commission

The Ontario Securities Commission (OSC) administers and enforces Ontario securities law. The Commission’s mandate is to protect investors from unfair, improper and fraudulent practices and foster fair and efficient capital markets.

The OSC registers and monitors dealers and advisers to ensure that they deal with clients in an ethical and professional manner. You can check whether a dealer is registered by contacting the OSC Contact Centre.

In addition, the OSC makes available in print, online and through seminars a wide range of other investor resources to help you learn how to protect yourself against fraud:

• Investment Fraud Checklist
• Protect Your Money: Schemes, Scams and Flimflams
• An Investor’s Guide to OSC Resources and Services.

For more information, contact:
Ontario Securities Commission
Contact Centre
20 Queen St. W., Ste. 1903
Toronto ON M5H 3S8

Toll-free: 1-877-785-1555
Phone: 416-593-8314
E-mail: inquiries@osc.gov.on.ca
Website: www.osc.gov.on.ca

Debt Management and Credit Counselling

If your finances are causing you concern or you are beginning to experience financial difficulty, contact a credit counselor. A credit counselor will carry out a full financial assessment to obtain a clear picture of your financial situation and will explore alternatives with you. Your counselor will help you with money management skills and discuss strategies for dealing with debts. You may also want to contact your own financial institution to learn what they can do to help you.
Ontario Association of Credit Counselling Services
Toll-free: 1-888-746-3328
Website: www.indebt.org

Online Life Event Bundle “Managing Your Debt”

The Ontario government is bundling information and services around key life events, such as “Managing Your Debt”. Each bundle brings together in one place everything on the subject. From this site, you can find information and resources on managing your money and how to get help.

For information, visit the “Life Events” section at the Government of Ontario Website at www.ontario.ca or a ServiceOntario Centre, or call the Citizens’ Inquiry Bureau at 1-800-267-8097.

6.5 Taxes

Property Taxes

The money required by a municipality to provide services is largely provided through property taxes. The taxes are calculated by multiplying the assessed value of a property by a tax rate. The tax rate is expressed as a percentage of the assessed value. A municipality can set different tax rates for different classes of property (e.g., residential, multi-residential, commercial, industrial).

The Municipal Property Assessment Corporation (MPAC) is responsible for assessing all property in Ontario. It operates under the authority of the Municipal Property Assessment Corporation Act. Every municipality in Ontario is a member of the corporation. Its main responsibility is to calculate an assessed value, or assessment, for each of the over four million properties in Ontario. Municipalities use these values when they calculate property taxes.

The Assessment Review Board is an independent tribunal which is responsible for hearing property assessment appeals. It has the authority to change an assessed value. If it reduces an assessed value, the municipality will reduce the taxes for that property.

Municipal Property Assessment Corporation
Toll-free: 1-866-296-MPAC (6722)
Website: www.mpac.ca

Ontario Tax Credits and Refunds

The Ontario Ministry of Revenue offers several tax credit and refund programs. Programs which may be of interest to seniors are described in this section.

Ministry of Revenue
Client Accounts and Services Branch
PO Box 627, 33 King St. W.
Oshawa ON L1H 8H5
Toll-free: 1-800-263-7965
TTY Toll-free: 1-800-263-7776
TAX FAX: 1-877-482-9329
Website: www.rev.gov.on.ca

Property and Sales Tax Credits

The Property Tax Credit (PTC) and Sales Tax Credit (STC) programs provide property and sales tax assistance to Ontario residents with low to moderate incomes.

To be eligible for the property tax credit, the taxpayer, on December 31 of the taxation year, must:

• be 16 years of age or older
• be a resident of Ontario, and
• have paid rent or property tax on a principal residence in Ontario.

To be eligible for the sales tax credit, the taxpayer, on December 31 of the taxation year, must:

• be 16 years of age or older, and
• be a resident of Ontario.

The combined maximum amount of property and sales tax credits that can be claimed in any one taxation year is $1,000. The calculation of the credit is more generous for most individuals aged 65 and older. Taxpayers claim the property and sales tax credits on the ON479 Ontario Credits form included with the federal income tax return package.

Property Tax Relief for Residences Built or Modified to Accommodate Seniors or Persons with Disabilities

Property owners who build or modify a residence to accommodate a senior or a person with a disability may be eligible for property tax relief.

Where an existing home is renovated through alterations or additions to the premises to accommodate a senior or a person with a disability, the value of the alteration, improvement or addition is exempt from property taxation.

• an example of an alteration would be the construction of ramps
• an example of an addition would be a new room (sometimes called a “granny flat”).

Where a new home is built to accommodate a senior or a person with a disability, 10 percent of the assessed value of the home is exempt from property taxation.

The senior or disabled person must otherwise require care in an institution without the provision of the accommodation in the renovated or new home.

Property owners who believe their home is eligible for tax relief under this program should notify their local office of the Municipal Property Assessment Corporation (MPAC) about the renovation or construction on their premises by October of the year preceding the tax year to ensure that exempt status can be reflected on the assessment roll.

For the address and phone number of your local MPAC office, contact the
Municipal Property Assessment Corporation:
Toll-free: 1-866-296-MPAC (6722)
Website: www.mpac.on.ca

Transportation for People with Physical Disabilities

A refund of Retail Sales Tax (RST) that you have paid is available on certain new or used licensed motor vehicles purchased or leased on a long-term basis (12 months or longer) for the purpose of transporting a person with a permanent physical disability.

At the time the motor vehicle is bought and a refund application filed, the purchaser must be:

• a person with a permanent physical disability who bought the vehicle for their own transportation
• a member of the family or the same-sex partner of a person with a permanent physical disability
• a principal caregiver, if the person with the permanent physical disability does not have a member of the family who is willing and able to provide transportation for that person, or
• a religious, charitable or non-profit organization that purchased the vehicle to transport people with permanent physical disabilities.

The purchaser may also be eligible for a refund of the RST paid on certain modifications made to the motor vehicle. These modifications must be made only to assist a person with a permanent physical disability.

For example, RST paid on modifications made to a motor vehicle in order to accommodate a wheelchair, such as raising the roof, lowering the floor, or installing special doors to accommodate a wheelchair lift, is refundable.

Income Taxes

How to Reach the Canada Revenue Agency (CRA) (Formerly Canada Customs and Revenue Agency)

If you need personal or general tax information, you can get it from many CRA sources:
• visit the CRA Website at www.cra-arc.gc.ca including the
seniors’ page at www.cra-arc.gc.ca/tax/individuals/segments/seniors/menu-e.html. You can also take advantage of the growing line of electronic services offered on the CRA Website, such as the Interactive Information Service or Address Changes Online

• phone the toll-free line for enquires about your personal income tax at 1-800-959-8281
• call the toll-free automated Tax Information Phone Service (T.I.P.S.) at 1-800-267-6999
• visit your local tax services office (addresses and phone numbers are on the CRA ’s Website at www.cra-arc.gc.ca/contact/tso-e.html and in the federal government section of most phone books).

CRA provides forms, guides, and publications you may find helpful, for example:

• RRSPs and Other Registered Plans for Retirement guide.
• When You Retire pamphlet
• Paying Your Income Tax by Installments pamphlet
• Canadian Residents Going Down South pamphlet
• Information Concerning People With Disabilities guide.

To obtain copies, call:
Toll-free: 1-800-959-2221
Website: www.cra-arc.gc.ca/formspubs/menu-e.html

If you use a TTY device, call 1-800-665-0354 for general tax information.

If you are visually impaired, call 1-800-267-1267 to order publications and forms related to filing your return in an alternative format (such as Braille and large print).

Preparing Your Tax Return

Your tax situation will probably change after retirement.

For example, some of your income could be non-taxable, such as Guaranteed Income Supplement (GIS) benefits, and either Allowance or Allowance for the Survivor benefits. If your income is high, you may also have to repay part or all of your basic Old Age Security (OAS) Pension.

Non-refundable tax credits reduce the amount of income tax you owe. While you can claim the same non-refundable tax credits that you could before retirement, you may also become eligible for additional non-refundable tax credits for seniors, such as the age amount and the pension income amount. If your income is lower after retirement, some income-tested benefits — such as the GST credit (Goods and Services tax) — may increase.

The Canada Revenue Agency (CRA) sends a personal T1S-A tax package to retired seniors with simple tax situations whose taxable income for the previous year was $50,000 or less. The T1S-A return has large print, and it includes the most common types of retirement income and credits for seniors.

If you have a Registered Retirement Savings Plan (RRSP), it must mature by the end of the year you turn 71.

For more information, get a copy of the RRSPs and Other Registered Plans for Retirement guide by calling 1-800-O-Canada (1-800-622-6263), or 1-800-959-2221, or by visiting www.cra-arc.gc.ca/formspubs/menu-e.html

Sending in Your Tax Return

If you want to file your tax return electronically to get your refund fast, you can file it over the Internet using the CRA’s popular NETFILE service. Call 1-800-714-7257 for more information or go to www.netfile.gc.ca. You may also be able to file your return by touch-tone telephone using the CRA’s free TELEFILE service. Eligible individuals receive information about TELEFILE in their personal tax package. For more information go to www.cra-arc.gc.ca/eservices/tax/individuals/telefile/seniors-e.html.

If you do not want to file electronically but you still want your tax refund fast, you can have it (as well as your GST credit payments) deposited directly into your bank account. To use the CRA’s direct-deposit service, simply complete the Direct deposit area on the last page of your tax return, or submit Form T1-DD(1), Direct Deposit Request – Individuals.

Help with Taxes

Do you need help to complete your income tax return? Under the CRA’s Community Volunteer Income Tax Program, trained volunteers complete basic tax returns free of charge for individuals with low incomes and simple tax situations. If you need a volunteer’s help (of if you would like to become a volunteer yourself), call 1-800-959-8281 or visit www.cra-arc.gc.ca/tax/individuals/volunteer/menu-e.html