Age Amount Deduction

What is the Age Amount Deduction?

The age amount deduction is a federal tax reduction offered to seniors aged 65 and older who have an income below a certain threshold. Individuals who are not eligible for the deduction may transfer the benefit to their spouse or common law partner.

How Much Can I Expect?

As of 2018, the age amount deduction was up to $7,225 for Canadian residents earning less than $84,597. For current Age Amount calculations click HERE to go to the CRA website.

Why Would I Not Qualify for the Age Amount Deduction?

Some individuals may have an income of less than maximum income amount, but not receive the age amount deduction. The age amount deduction is a non-refundable tax credit, and therefore, you must pay income tax to receive the credit. This means that individuals with an income of less than the basic personal amount will not receive any additional deduction.

How Do I Apply?

You apply for the age amount deduction when filling out your income tax form. If you are eligible, you claim the deduction on line 301. You can also apply for a provincial or territorial tax credit. You do so on line 5808.

We would encourage you to speak to your accountant for more details.

Sources:
https://turbotax.intuit.ca/tips/claiming-the-age-amount-tax-deduction-5568
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-301-amount.html