Estate Planning: Making and Updating your Will. https://t.co/IRsdSj4gpQ
What is the Age Amount Tax Credit?in Tax Advice Information and Updates
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.
- CRA Website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/301/menu-eng.html
- Taxtips.ca: http://www.taxtips.ca/filing/ageamount.htm?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A++TaxtipscaWhatsNewTaxTips.ca+What%27s+New