RRIF income and the pension credit

November 2019 – If you are 65 or older and receiving RRIF income, you can claim the pension credit on your federal tax return for up to $2,000 of RRIF income. (A similar credit is also available provincially.) The federal credit is worth $300, and can be used to offset tax payable on any form of income. The credit cannot be carried forward to a future year, so be sure to claim the credit when available. You can also split this income with your spouse if they are in a lower tax bracket, which may result in being able to double the pension credit if your spouse is also 65 or older.