When you are moving overseas to Canada, the first thing that needs to be sorted out is the Expat Tax which will be levied on you if you are a U.S. citizen. Even if you move overseas then also you will have to pay the taxes regularly as the country vigorously pursues the taxes for their citizens worldwide. You cannot even give up your U.S. Citizenship to eliminate the process of paying tax to the U.S. government.

To prevent one from the complexities you need to do so, even if there is no earning as there is the Statute of Limitations on tax disputes which you will have to keep in mind because if there is any dispute on the back taxes, you will be in a tax dispute if you do not file taxes regularly. There are detailed information bulletins provided by the IRS for the citizens, even those who are living abroad regarding the payment of the taxes which can be consulted to get clear ideas.

The maximum threshold for earning that is tax free in U.S. is latest of around $95,100 of income earned in a foreign country. The earned income is categorized here and the other aspects such as rental income, interests, capital gains and other dividends are not included under the category of earned income and they will all be subjected to taxation. And the earned income exclusion is also only applicable when you file the tax return.

There are some additional aspects for Canada U.S. Tax Preparation on which the expats are excused from paying taxes such as the housing limits. In addition to the concept of earning exclusions, the expatriates are also given the tax breaks on the housing costs. In this way the US citizens can exclude the portion of their income that they spend on the housing and rentals or the property costs. But for that, you will have to certify that you are a bona fide resident of the foreign or host country to claim the tax exclusion from the U.S. government.

One point to be particularly noted for Canada Us Income Tax Convention is that whatever income that falls above the amount decided by the government for exclusion will be taxed after giving scopes such as application of housing allowances and maintenances.

In this way, you get a clear idea from the website on the type of taxes you need to pay, in what amount as well as where you are eligible for tax exclusions and thus, save the hard earned money from paying taxes. You can check out the online websites regarding the services, the types of taxes levied as well as the exclusion of taxes if possible which is applicable according to the  eligibility of the candidate filing income tax returns. In such cases if you are not quite sure of the regulations you can hire an expert tax accountant to get you out of the situation in no time at all.

It is to be noted that from F.Y. 2011-12 qualifying age for Senior Citizens has been reduced from 65 years to 60 years.

Benefits available to senior citizens are listed below

1. Higher Exemption Limit

For assessee not being a senior citizen basic exemption limit is Rs.2,50,000 which is enhanced to Rs.3,00,000 for assessee being senior citizens.
From Assessment year 2012-13 onwards a new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000.

2. Tax benefits on medical insurance

A senior citizen can avail deduction in respect of Medical Insurance Premium paid by him by any mode other than cash during the previous year, which has been enhanced from Rs.20,000 to Rs.30,000 from assessment year 2016-17 onwards.

3. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen

With effect from A.Y. 2016-17 Any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, as does not exceed thirty thousand rupees shall be allowed as deduction under section 80D.

4. Higher Deduction u/s 80DDB for Senior Citizens and Super Senior Citizens

Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified diseases & ailments.

Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.

From A.Y. 2016-17 higher limit of deduction of upto Rs.80,000 is allowable, for the expenditure incurred in respect of the medical treatment of very senior citizen.
However the amount of deduction claim shall be reduced with the amount of Insurance claim received.

5. Relaxation on eFiling of Income Tax Return

A very senior citizen filing his return of income in Form ITR 1/2/2A and having total income of more than Rs. 5,00,000 or having a refund claim can file his return of income in paper mode,
E filing is not mandatory for him.

A person becomes senior citizen under Income Tax Act on attainment of age of 60 years or more at any time during the previous year and he shall be considered as very senior citizen on attainment of age of 80 years at anytime during the previous year.

6. Exemption from payment of Advance Tax. Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified diseases & ailments. For more information visit:- https://taxzippy.com/