Written by Julie McMahon. Posted in Canadian Tax
The Federal government tabled its budget on March 29 with few tax changes and an expected change to Old Age Security (OAS).The most recent Federal Budget introduced little new tax credits but did have several technical changes that will impact tax returns in future years.
The age of eligibility for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) will gradually increase from 65 to 67 beginning 2023, with full implementation in 2029. Anyone aged 54 or older as of March 31, 2012 will not be impacted.• Starting July 1, 2013, Canadians will be allowed to voluntarily defer their OAS benefits for up to five years. This means you do not have to start collecting at age 67 and you will receive a higher, actuarially adjusted, annual pension. This optional deferral does not include the GIS.• The government did expand the list of eligible medical expenses and added blood coagulation monitors for use by individuals who require anti-coagulation therapy such as people diagnosed with high blood pressure or hypertension. This includes disposable items such as pricking devices, lancets and test strips. The expense is eligible when prescribed by a medical practitioner and applies to expenses incurred after 2011.