Line 301: Age Amount Tax Credit

by Tax Guy - Burlington Accountant on March 24, 2010 Print This Post Print This Post

If you turned 65 in 2009, you are entitled to an additional non-refundable tax credit amount of $6,408. However, the age credit will be reduced if your net income reported on Line 236 is more than $32,312. The reduction of the credit is 15% of your net income that is over $32,312 and is fully eliminated when your net income exceeds $75,032.

For example, if you were over 65 and had net income in 2009 of $45,000, your age credit will be reduced by $1,903 ($45,000 – $32,312 x 15%) and the amount you would report on Line 301 would be $4,505.

Impact of Pension Splitting

Are you splitting your pension with your spouse or common law partner? If so, be aware that pension income allocated to you will increase the amount of income reported on Line 236 and may reduce the Age Amount.

Conversely, if your net income on Line 236 is more than $32,312, you may be able to increase your Age Amount by allocating a portion of your pension income to your spouse.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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