What is the Age Amount Tax Credit?

by in Tax Advice Information and Updates
www.taxtips.caThis non-refundable tax credit is available to individuals who are, at the end of the taxation year, aged 65 or older. However, it is reduced when income exceeds a threshold amount. Each province except Québec has an age amount tax credit which is calculated in the same manner. The Québec tax credit calculation is similar, but combines the credits for taxpayer and spouse in the same calculation, and uses family income in the calculation.”

Taxtips.ca recently came out with a new tax alert providing information about the Age Amount Tax Credit.  According to the website, this tax credit can be claimed on line 301 of the personal income tax return.  The federal age amount for 2011 is $6,537 and $6,720 for 2012.  This amount is reduced by 15% of the income exceeding a threshold amount of $32,961 for 2011 and $33,884 for 2012 and is eliminated when income exceeds $76,541 for 2011 and $78,684 for 2012.

Here are a few reminders when planning to claim this tax credit:

  • Please make sure you enter your date of birth in the “Information about you” area on page 1 of your return.  And remember to claim the corresponding provincial or territorial non-refundable tax credit to which you are entitled, on line 5808 of your provincial or territorial Form 428

  • You may also be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount.  If your spouse or common-law partner does not need to claim some or all of certain non-refundable tax credits to reduce his or her federal tax to zero, then you may be able to transfer those unused amounts.

  • If the taxpayer dies before their birthday in the tax year in which they would have turned 65, no age amount tax credit can be claimed on their behalf.

  • If the taxpayer who is eligible has income from a gain from a disposition of property to a creditor regarding settlement of debt on certain foreclosures, repossessions and similar transactions then that income is excluded from net income for tax purposes in the age amount calculation.  We recommend you see a tax professional to ensure that this is properly handled.


Rate this blog entry:
KD PROFESSIONAL is a group of interconnected companies offering a wide range of financial, accounting and tax services to individuals and businesses across Canada. Through our experienced staff and strategic alliances, we provide exemplary service and solutions to maximize your cash flow, while preserving Wealth.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 23 January 2019

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5


Read our Tweets