Tax Tips - Personal Tax Returns: Pensioners

$ 2,000 PENSION DEDUCTION

If you are 65 or older, you should try to have at least two thousand dollars of income qualifying for the pension income credit. This credit will save you up to $488 per year in taxes. If you're under 65 and receiving a pension as a result of the death of your spouse - you also qualify for the credit. Old Age Security and Canada Pension income will not qualify. If you only have Old Age Security and Canada Pension, you can qualify by putting a sufficient amount of RRSP funds into an RRIF or an annuity which pays out $2,000 a year.