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Income Tax Act s. 118(3), 118(7), 118(8)

Line 31400 Pension Amount Tax Credit

Note: Before tax year 2019, line 31400 was line 314.

Taxpayers receiving certain pension income may claim both a federal and provincial/territorial pension income tax credit.  This is a non-refundable credit, but can be transferred to a spouse or common-law partner if it is not fully used by the taxpayer.  Any unused portion can not be carried forward or back.  See the tables of non-refundable tax credits for amounts and tax rates for all provinces and territories.

The pension income amount tax credit is claimed on line 58360 (line 5836 prior to 2019) of the provincial tax return.

The amount of the federal credit is 15% (lowest federal tax rate) x the lesser of:

1. $2,000, and
2. the total of
   1. the eligible pension income (see below) of the individual for the taxation year, and
   2. amounts received as retirement income security benefit under Part 2 of the Veterans Well-being Act, and
   3. amounts received as income replacement benefit under Part 2 of the Veterans Well-being Act, if the amount is determined under s. 19.1(1), 23(1)(b) or 26.1(1) of that Act.

Thus, the maximum amount eligible for the credit is $2,000.

The amount of the provincial/territorial credit is the lowest tax rate for that province/territory x the lesser of the above amounts, replacing the $2,000 federal amount with the provincial or territorial amount.

Tax Tip:  Any unused portion of your pension income tax credit can be transferred to your spouse, and this will be done automatically by tax return software.

What are eligible and qualified pension income for purposes of the pension income tax credit?

How can pension income be "created"?

Pension splitting

Will the spouse get a pension income tax credit when pension income is split with a spouse?

Completing form T1032 - Step 4 Pension income amount for the pension income tax credit

Canada Revenue Agency (CRA) Resources

Line 31400 Pension income amount

Revised: September 20, 2024

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