Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Age Amount Tax Credit TaxTips.ca
Canadian Tax and
Financial Information
TaxTips.ca Home

What's New

Links & Resources

Site Map

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with TaxTips.ca!

 

Home  ->   Filing Your Return  -> Federal and Provincial Age Amount Tax Credits

Age Amount Tax Credit Line 30100

Note: Before tax year 2019, line 30100 was line 301.

Income Tax Act s. 118(2)

How Much is the Age Amount Tax Credit?

Provincial Age Amount Tax Credits

Quebec Age Amount Tax Credit

Age Amount Clawback

Age Amount Clawback Example

Detailed Tax and RRSP Savings Calculator

Capital Losses Carried Forward Don't Reduce Clawbacks

Taxpayer Death in Year of 65th Birthday

Gain From Surrender of Property to Creditor

Canada Revenue Agency (CRA) Resources

How Much is the Age Amount Tax Credit

The age amount tax credit is a non-refundable tax credit, claimed on line 30100 of the personal income tax return.  This tax credit is available to individuals who are, at the end of the taxation year, aged 65 or older.  The federal age amount for 2023 is $8,396 ($7,898 for 2022).

The tax credit is calculated using the lowest tax rate (15% federally), so the maximum federal tax credit for 2023 is $1,259 ($1,185 for 2022).

Provincial Age Amount Tax Credits

Each province except Quebec has an age amount tax credit which is calculated in the same manner as the federal age amount tax credit

See the tables of most non-refundable personal tax credits for applicable amounts for each province and territory except Quebec.

See Nova Scotia Age Amount for an additional tax credit for 2018 and later years.

Quebec Age Amount Tax Credit

See Quebec amounts subject to indexation for the applicable amounts for Quebec.  

The Quebec tax credit calculation is similar to the federal calculation, but combines the credits for taxpayer and spouse in the same calculation, and uses family income in the calculation.  The Quebec tax credit is calculated on Schedule B.  The age amount, amount for a person living alone, and amount for retirement income are calculated on this form. The clawback for these combined tax credits is calculated based on family income. All or part of the net amount of the tax credit can be claimed on the spouse’s tax return.

Age Amount Clawback

The age amount is reduced (clawed back) by 15% of income (net income from line 23600 (line 236 prior to 2019) of your tax return) exceeding a threshold amount of $42,335 for 2023 ($39,826 for 2022), and is eliminated when income exceeds $98,308 for 2023 ($92,479 for 2022).

Each province has different thresholds for calculating the age amount clawback.  See the tables of most non-refundable personal tax credits for applicable clawback thresholds for each province and territory except Quebec.

See also: Capital Gains Can Increase Your OAS & Age Amount Clawbacks - even if you have losses carried forward to offset the gains.

Age Amount Clawback Example

We'll do an example of the age amount tax credit calculation for someone earning in excess of the threshold amount, for the federal and Ontario tax credits.  Keep in mind that the maximum tax credit for 2023 is $1,259 federally, $293 for Ontario.

Year           2023 Federal                     2023  Ontario        
Age amount $8,396 $5,793
Net income for tax purposes (line 236)     $50,000 $50,000
Less threshold   42,335 43,127
Excess 7,665 6,873
Deduct 15% of excess   1,149.75   1,030.95
Age amount $7,246.25 $4,762.05
Federal 15% tax credit / Ontario 5.05% $  1,086.94 $   240.48

If the individual claiming this credit cannot utilize the entire amount before reducing taxes to zero, the unclaimed amount can be transferred to the spouse.  This is done by completing Schedule 2 of the tax return.  This would happen automatically if using tax software.

Detailed Tax and RRSP Savings Calculator

The age amount tax credit and clawback are calculated by the Detailed Tax and RRSP Savings Calculator.

Capital Losses Carried Forward Don't Reduce Clawbacks

Note that an age amount clawback (as well as an OAS clawback) can be triggered by capital gains, even if the capital gains are offset by capital losses carried forward.  This is because the age amount tax credit is based on line 23600 (line 236 prior to 2019) of the tax return, net income for tax purposes.  Losses carried forward are deducted after this on the tax return.  See our article on how to calculate Total Income For Tax Purposes, Net Income For Tax Purposes, and Taxable Income.

Taxpayer Death in Year of 65th Birthday

If an individual 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.

Gain From Surrender of Property to Creditor

If an individual who is eligible for the age amount tax credit has income from a gain from a surrender of property to a creditor regarding settlement of debt on certain foreclosures, repossessions and similar transactions (Income Tax Act s. 79), then that income is excluded from net income for tax purposes in the age amount calculation.  This is complicated, so a tax professional should be consulted.

Canada Revenue Agency (CRA) Resources

Age Amount Tax Credit

Tax Tip: Capital gains can increase the age amount clawback, even when capital losses carried forward completely eliminate the capital gains.

Revised: October 26, 2023

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  See What’s New, stay connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.