Families

Claiming the Age Amount Tax Deduction

The age amount is a tax deduction is for low- to middle-income people who are over the age of 65. Seniors with high income who don’t qualify for the tax deduction can transfer the age amount to a spouse or common-law partner.

Claiming the Age Amount

Many seniors find themselves on fixed income with rising health care costs. To help ease your tax burden, the government lets you claim the age amount tax deduction.

You can claim this tax deduction on line 301 of your tax return if you are at least 65 years old at the end of the tax year (Dec. 31) and your net income (found on line 236 of your tax return) is less than the maximum amount ($87,750 in the 2019 tax year). Similar to other tax credits and deductions, the maximum amount increases each year.

Similar to Old Age Security, the age amount is an income-tested tax deduction that has a claw-back amount. Your net income has to lower be than the maximum amount to qualify. If your net income is above $87,750, you would not qualify for the age amount because your income is too high. If your net income is more than $37,790 but less than $87,750, the age amount is calculated by taking a tax deduction of $7,494 minus 15 percent of your net income above $37,790. If your net income is $37,790 or less, you can claim the full amount of $7,494.

There is an age amount for provinces and territories, which you claim on your province or territory’s Form 428.

Low-Income Seniors May Not Benefit

Even if you qualify for the age amount, you may not receive the full tax deduction. The age amount is a non-refundable tax credit. If you’re a low-income senior with a net income below the basic personal amount ($12,069 in the 2019 tax year), you won’t receive any additional tax deduction.

Even if you don’t qualify for the federal age amount, you might be eligible for the provincial age amount. Each province and territory’s basic personal amount is different. For example, the basic personal amount for Alberta is $19,369, whereas the basic personal amount for Ontario is only $10,582. Find out what your province or territory’s basic personal amount is to see if you qualify.

Transferring the Age Amount

If you don’t qualify for the age amount tax deduction, you may be able to transfer the age amount to your spouse or to your common-law partner if he qualifies. Your spouse or common-law partner can also transfer the age amount to you if he doesn’t qualify for the tax deduction. Line 326 of your tax return has the age amount to be transferred to your spouse or common-law partner (if applicable).

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