Four tax bumps seniors should look out for
Pay attention to the key points where taxes jump to a higher rate. Retirees can then try to smooth out income to stay just under the next highest tax bracket when possible.
Pay attention to the key points where taxes jump to a higher rate. Retirees can then try to smooth out income to stay just under the next highest tax bracket when possible.
Notes: Income up to $19,982 is shielded from federal taxes by the basic personal credit ($11,038), age credit for being 65+ ($6,854), and the maximum pension income credit ($2,000 from an employer pension, or if you’re 65 or older, from a RRIF or registered annuity). The 15% OAS clawback does not include the reduced income taxes on the clawed back amount.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email