Question

Oscar is 73 years old. His 2019 net income for tax purposes from his RRIF and other investments is $120,000. He lives with his common-law partner, Felix who is 63 years old. Felix’s only income for 2019 was investment income of $6,000. Oscar can claim all of the following federal tax credits except:

Basic personal tax credit.

Age tax credit.

Pension tax credit.

Spousal tax credit.

Answer 1

Given, Osacr is 73 years old. HIs total income from his RRIF and other investments is $120,000.

He lived with his common law partner, Felix who is 65 years old and her income from investment income was $6,000.

Basic Personal Tax Credit: Every taxpayer is eligible to claim a personal tax creit amount of $12,069.

Age Tax Credit: Tax payer who crossed 65 years of age at the end of 2019 can claim Age Tax credit . The Federal Age amount for 2019 is $7,494. It is an additional benefit available for them.

Pension Tax Credit : When you make contribution to Registered Retirement Income Fund the amount is tax free, but when the amount is received from RRIF as pension after retirement it is taxable.

Spousal Tax Credit: A tax payer is eligible for Spousl tax credit if he lives with and supports his spouse or common law partner and his or her net income is less than $12,069 for 2019 can claim all of the amount to the liimit of $12,069

In the given Case,

Basic personal tax credit: Oscar can claim the Basic personal Tax credit as it is available for every tax payer.

Age tax credit.: Oscar eligible for Age tax credit also as his Age is more than 65 ant the end of the year 2019

Pension tax credit.: He is not eligible for Pension tax credit as the pension received from RRIF after retorement is taxable.

Spousal tax credit: He is also eligible for Spousal TAx credit as he live with his common partner and his partners income is $6000 which less than $12,069 , so he can claim the whole amount of $6000.

Hence Oscar can claim all of the federal tax credits except Pension Tax Credit.