B.C.’s seniors advocate is encouraging seniors to file their income tax returns to take advantage of possible subsidies and tax credits.
Isobel Mackenzie said that includes low-income seniors — even if they think they don’t bring in enough money to file a return.
“I can’t over emphasize the importance of filing income tax particularly for seniors who may be unaware of a number of tax credits they may be eligible for or subsidies that require income verification from their tax return,” Mackenzie said Tuesday.
“Nowadays pretty much everything … is income tested.”
Mackenzie said the ramifications of not filing a tax return could include missing out on medical expense deductions or disability tax credits or losing subsidies for home care or residential care.
Without information from the latest tax return, people pay the full rate until income can be determined, Mackenzie said.
Both Fair PharmaCare and Medical Services Plan premium assistance are income tested.
“Everybody must file a tax return because we have no way of knowing if you have little or no income — you didn’t file a tax return — so in the absence of a tax return to verify low income, to verify qualifying for a subsidy, we assume you don’t need [the subsidies],” she said.
Mackenzie also encourages Greater Victoria seniors to avail themselves of about 10 free income tax clinics in the capital region — about 250 operating throughout the province — that can assist seniors.
The volunteers are often able to identify deductions for which low-income seniors might be eligible, Mackenzie said.
A full list of free income tax services is available online at bit.ly/1QyZW0G or by calling the Office of the Seniors Advocate at 1-877-952-3181.
New this year is a service called File My Return, which allows Canadians with a low or fixed income that is unchanged year to year to file their return by phone. Information about this service is at bit.ly/2EKweZ6.
Financial subsidies that rely on tax returns to determine eligibility include:
• Guaranteed Income Supplement — monthly benefit for seniors receiving Old Age Security who have an income of $24,955 or less
• Shelter Aid for Elderly Renters — rental subsidy for those 60 or older who live in a private market rental unit and have on a moderate to low income
• B.C. Bus Pass Program — subsidized annual bus passes for low-income seniors receiving GIS
• B.C. Seniors Supplement — monthly top-up of up to $49.30 to the federal OAS/GIS or federal allowance payments
• Medical Services Plan (MSP) premium assistance — reduced monthly premiums on a sliding scale to moderate- and low-income individuals
• Fair PharmaCare — subsidies on the cost of prescription drugs
• Home Adaptation for Independence grant — financial assistance to help eligible low-income seniors make renovations necessary to continue to live at home
• Publicly funded residential care and assisted living — client portions are calculated based on after-tax income
