Tax Planning for Retired Canadians
February 26, 2018
[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.86″ background_layout=”light”] When planning for retirement, you may focus too much on how much you’ll make from the different investments and forget about the taxes you’ll have to pay. There are several credits that you can use to lower your tax burden when you receive your retirement income. Other strategies such as splitting retirement pension income with your spouse or using claiming pension income tax credit can help you lower your tax bill. Whether you’re still thinking of planning for retirement or you have just a few more years to retire, we’re here to help you plan for this and save thousands of dollars in the process. Below are some practical tax tips for anyone who’s planning for retirement.
Take Advantage of Pension Income Tax CreditThis tax credit can be used by anyone who has attained the age of 55. You are able to receive a tax credit of up to $20,000. If your pension income is lower, you can receive a tax credit for the whole amount. This can actually save you hundreds of dollars each year in taxes.
What’s Pension Income?
Pension income can be made in several ways including:
- 1. Income from a pension fund, a registered retirement income fund, foreign pensions or superannuation
- 2. Annuities received from an RRSP or a deferred profit sharing plan