If you are over a certain age and have income over a threshold, you may qualify for claiming the Age Amount. While it cannot amount to any refund, it is a non-refundable tax credit to reduce any income tax over retirement age and is transferable between spouses.
To qualify for claiming the Age Amount, you must have turned 65 before the last day of the tax year for which you make the claim. In addition to the requirement of age, your net income for the tax year must be no more than $89,422. Please note that the amount is only eligible for Canadian residents who have accrued income. If you have declared bankruptcy, you cannot claim the amount in the following year.
- $7,637 for income lower than $38,508;
- Calculate the amount on line 30100 on your income tax return if your income is between $38,508 and $89,422. You should subtract $38,508 from your income and multiply it by 15%. E.g. If your net income found on line 23400 is $70k, you should subtract $38,508 from the $70k and multiply it by 15% ($4,723.8). Then, subtract $4,723.8 from the maximum claim of $7,637 and enter the amount $2,913.2 o line 30100.
If you qualify but do not need the Age Amount, you can transfer all or part of the credits to your spouse or life partner. For example, if you’re entitled to $7,000 of Age Amount but only owe the CRA $2000, you can transfer the rest $5000 to your spouse, therefore reducing the household’s total taxes. The received amount should be entered on line 326000 of both of your income tax returns.