Tax season is here, and if you’re 65 or older, we have some tips to help you get all the benefits, credits, and deductions you're entitled to. Whether you're still working, living on a pension, or supporting loved ones, filing your taxes accurately and on time can help you keep more money in your pocket.
Important Tax Deadlines
- Filing deadline for most individuals: April 30, 2025
- Self-employed individuals (and their spouses/common-law partners): June 15, 2025 (considered on time if filed by June 16, 2025)
- RRSP contribution deadline for the 2024 tax year: March 1, 2025
- Payment deadline for taxes owing: April 30, 2025
If you have a balance owing, interest will begin to accumulate daily starting May 1, 2025, until the full amount is paid.
Tax Instalment Interest
If the CRA requires you to pay tax instalments throughout the year, make sure you pay them by the due dates. Missing any instalment deadlines could result in instalment interest charges. These charges apply even if you pay your full balance by April 30—so stay ahead of the schedule to avoid unnecessary costs.
Benefits and Credits for Seniors
Filing your return is the key to receiving benefits and tax credits that can ease your financial burden:
- GST/HST Credit: Quarterly tax-free payments for individuals with low to modest income.
- Guaranteed Income Supplement (GIS): Monthly non-taxable payments for low-income Old Age Security recipients.
- Canada Caregiver Credit: If you support a spouse, partner, or dependent with a mental or physical impairment, you may be eligible.
Reduce the Taxes You Owe
Even if you owe taxes, you may be able to reduce the amount with:
- Disability Tax Credit & Supports Deduction
- Medical Expenses
- Home Accessibility Expenses
- Pension Income Splitting: You can split eligible pension income with your spouse or partner to lower your combined tax bill.
Renovating to Share a Home With Family?
If you're creating a secondary unit to live with family—either as a senior or for an adult with a disability—you may qualify for the Multigenerational Home Renovation Tax Credit (MHRTC). Claim up to $7,500 for eligible renovation expenses.
File Online and Get Your Refund Faster
Use CRA-certified software to file online, and sign up for direct deposit to receive your refund quickly. Many software options are free and easy to use—even for first-time filers.
Penalties for Filing Late
If you miss the filing deadline and owe a balance, you’ll face a late-filing penalty:
- 5% of your 2024 balance owing, plus 1% per full month your return is late (up to 12 months).
If you've previously been charged a late-filing penalty (in 2021, 2022, or 2023) and received a demand to file, the penalty increases to:
- 10% of your balance owing, plus 2% per full month the return is late (up to 20 months).
Even if you can’t pay your full balance, file on time to avoid these penalties. Filing late can also delay benefits like the GST/HST Credit, Canada Child Benefit, and Old Age Security.
Watch Out for Scams
Scams tend to spike during tax season. The CRA will never:
- Ask for personal information by text or email
- Demand payment via gift cards, crypto, or prepaid debit cards
If you notice unusual activity in your CRA account, report it right away. Also notify your bank, the Canadian Anti-Fraud Centre, and local police if needed. Regularly monitor and update your CRA account password for extra security.
Start preparing today to take advantage of the benefits and avoid unnecessary interest, penalties, or delays. Need help? We have 20+ years servicing Newmarket, ON and the surrounding areas, and look forward to meeting with you. So give us a call and speak to a friendly staff member from Koroll & Company today!
