The age credit is eligible for individuals who has attained the age of 65 years before the end of the year. However, this credit is reduced by the individual’s 15% of excess net income over the threshold amount ($32,961)

For example, an individual above the age of 65 earns a net income of $45,000. Then the tax credit available to this individual is:

Age tax credit base                                                                                 6537

Less: Base reduction of lesser of:

–          Credit base                                                                    6537

–          Taxable income minus threshold 15%(45,000 – 32,961)     1806

Lesser amount                                                                                        1806

Net tax credit base                                                                                  4731

Tax credit (15%)                                                                                                  710

Note that the age credit is transferrable to a spouse or partner.