Tax return time is near in Canada. The Canada Revenue Agency (CRA) has invited all to file their tax returns. Forms for 2025 will be available on February 24, 2025, and the CRA provides people with many tax credits, benefits, and deductions so that people don’t have to pay much tax. In those is a new credit for taxation year 2024 – $8,790 Age Amount Canada Tax Credit February 2025. This credit focuses on senior citizens who are at least 65 years old and is the most seniors can be eligible for as tax credit.
Sometimes seniors realize that they need other forms of benefits are not enough to cater to their needs, therefore, CRA awards seniors various other tax credits and deductions to cater to their needs. This is the reason that the $8,790 Age Amount Credit is applied for this specific purpose. The CRA computes this credit every year at filing time, and this year it is for all older Canadians who will be 65 or more on December 31, 2024. This tax credit can reduce their taxable income, which can reduce their overall economic burden.
Some important facts about this credit:
$8,790 Age Amount Canada Tax Credit February 2025 | |
| Year | 2025 |
| Country Name | Canada |
| Issuing Agency | CRA |
| Month | February |
| CRA Age Amount Tax Credit Eligibility 2025 | Those Canadians who have 65 years age or older |
| Purpose | Financial Assistance |
| How To Claim Age Amount Of $8790? | File Tax Return and Complete Line 30100 |
| Post Category | Finance |
| Official Web Page | www.canada.ca |
Apart from that, the CRA has also issued other payments and allowances, such as the Canada Federal Payment 2025 of $300 and an additional $943 in OAS benefits per month, and $1,790.
Eligibility and Income Requirements:
This credit will be given only for seniors who have some net income. For a senior whose net income is below $44,325, the total credit of $8,790 will be given. But if they are between $44,325 up to a cap of $102,925, the credit will be lower depending on income. The calculation based on this is as follows:
| Maximum Amount | – | $8790 |
| Amount from Line 23600 | A | – |
| Income Threshold | $44325 | – |
| Minus Amount from Line 23600 and Income Threshold | B | – |
| Applicable Rate | 15% | – |
| Multiply B with 15% | C | – |
| Minus Maximum Amount of $8790 from C | – | D (Tax Credit Amount) |
Please remember, if a senior’s net income is higher than $1,02,925, then in that situation 0 will have to be entered on Line 30100 and he will not be eligible for this credit.
How to Claim Credit:
If you are eligible, you have to give the correct information in Line 30100 while submitting your tax return. This is extremely important since only then will you be able to claim the maximum credit for age of $8,790. After submitting the filing, this credit will lower your tax amount.
Fact Check and Reliability:
This $8,790 Age Amount tax credit is entirely reliable. This credit is applicable for individuals 65 years and older, and it will reduce their taxable income. This credit will be credited in the year 2024. For more details, you can also see the official CRA website or Service Canada website. In case of doubt, you can also contact tax experts or financial planners.
On the whole, it is a very handy tax credit for elderly individuals who wish to be financially self-sufficient even in their retirement phase. You can avail yourself of this credit through valid filing of your tax return and precise reporting of Line 30100.
Frequently Asked Questions (FAQ) – $8,790 Age Amount Canada Tax Credit February 2025:
Q.Is this $8,790 Age Amount Tax Credit 2025 real?
A.Yes, this credit is totally true and authentic.
Q.What is Age Amount Tax Credit?
A.This is a credit for taxes that is intended for older citizens who do not find other benefits offered by CRA to be useful. Its purpose is to reduce their tax value, such that their burden is reduced.
Q.What is Age Amount Tax Credit?
A.Senior citizens who are 65 years and above as on 31 December, 2024 can claim this credit.
Q.What will seniors have to do in order to receive the credit?
A.Seniors will have to precisely complete line 30100 when they file their tax return.
Q.Does a senior need to have any net income at all to qualify for this credit?
A.Yes, in case your net income is less than $44,325, you will get the entire credit of $8,790. However, if your net income is more than $44,325 but less than $1,02,925, you will be given a partial credit proportional to your income.