Quick tax tips for seniors

By Staff | March 24, 2014 | Last updated on September 15, 2023
1 min read

Throughout tax season, check in with clients to ensure they’re taking advantage of all credits and opportunities.

Read: 7 handy tax return tips from Golombek

And when helping older investors, Standard Life suggests offering these four tips:

1. Consider pension-splitting opportunities: If a client is older than 65, she can create eligible pension income by transferring funds that are invested in non-registered GICSs to term funds or other annuity products. She can then split that income with her spouse, as well as review her estate planning options.

Read: How to file taxes for snowbirds

2. Avoid RRSP penalties: Before a client starts converting her RRSP into a RRIF, ensure she hasn’t over-contributed to prevent costly penalties.

3. Carry forward RRSP tax deductions: Following RRSP contributions, your client can carry forward deductions—even if she’s older than age 71. If she’s expecting a lower marginal tax rate in future years, make sure all available tax deductions are used.

Read: Tax credits for seniors

4. Make the most of TFSAs: TFSA investment income isn’t taxed, so help clients leverage these accounts. Those who haven’t yet opened a TFSA have $31,000 of contribution room this year.

For more, read:

Canadians confused when filing taxes

Tax consequences of transferring life insurance

How to make accountants smile

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.