AGE & PENSION AMOUNT

Two credits are aimed at older Canadians and retirees: the age amount on line 30100 and the pension income amount on line 31400. Both can be transferred to a spouse or common-law partner if they cannot be used.

AGE AMOUNT (LINE 30100)

• Available to individuals who were 65 or older on December 31.

• 2026 maximum: $9,208 (worth $1,289 federally).

• Reduced by 15 percent of net income above $46,432, eliminated at net income of about $107,819.

• Ontario equivalent: $6,342, reduced by 15 percent of net income above $47,210.

• Because the reduction uses net income, pension income splitting, RRSP deductions and the timing of RRIF withdrawals can increase the amount claimed.

PENSION INCOME AMOUNT (LINE 31400)

• The lesser of $2,000 and eligible pension income (worth up to $280 federally; Ontario amount $1,796).

• At any age: life annuity payments from a registered pension plan, and certain amounts received as a result of a spouse's death.

• At 65 or older: also RRIF payments, LIF payments, RRSP annuity payments, and the interest portion of non-registered annuities.

• Not eligible: OAS, CPP or QPP, Guaranteed Income Supplement, lump-sum withdrawals from an RRSP, retiring allowances, and death benefits.

PLANNING: CREATING PENSION INCOME AT 65

A person with no workplace pension can convert part of an RRSP to a RRIF at 65 and withdraw $2,000 a year, generating eligible pension income that uses the credit. With pension splitting, both spouses can each claim the full $2,000 amount.