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.
RRIF income and the pension credit
by Heidi Pullem | Dec 17, 2019 | Tips