Age Credit

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.

This entry was posted in Articles, General Accounting & Tax Topics, Individual Tax Topic. Bookmark the permalink.