Old Age Acount
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Thread: Old Age Acount

  1. #1
    Junior Member
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    Old Age Acount

    Can anyone tell me why the age amount increases taxes owing? It is supposed to decrease it. However, in this case it is opposite. Is it because CPP and OAS is collected but no taxes are deducted and there is also employment income?


  2. #2
    Senior Member stardancer's Avatar
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    The age amount is a credit, so decreases the taxes owing. I would suspect that the total amount of income for the year is the culprit, as taxes owing is based on your income. If you just turned 65 and started collecting CPP/OAS on top of your regular employment income then yes, your income has just increased by at least $9000.

  3. #3
    Senior Member caricole's Avatar
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    your income has just increased by at least $9000.
    And you «AGE AMOUNT CREDIT» is only 6537$ Line 301

    If «PENSION INCOME» of 2.000$ on line 314 is available ( because of «PENSION INCOME on line 115)....then it almost levels out

    As you said, there are no withholdings on OAS or CPP. So there is tax owing on this "new" income.
    You can request witholding tax on OAS and-or CCP in order to avoid quarterly tax installments

    my opinion
    Last edited by caricole; 2012-04-13 at 02:43 PM.

  4. #4
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    Quote Originally Posted by caricole
    If «PENSION INCOME» of 2.000$ on line 314 is available....then it almost levels out
    No ... The pension amount credit doesn't apply to OAS or CPP.

    Audrey ... The tax credit always reduces your tax payable, as SD said. But the amount that you have to send in in April is merely the difference btwn your tax payable, and any amounts already paid, such as amounts withheld at source, or installment payments. As you said, there are no withholdings on OAS or CPP. So there is tax owing on this "new" income. The old age credit, also new, reduces this amount, but isn't enough to reduce it to zero.

    Last edited by cardhu; 2012-04-13 at 01:51 PM.

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