PENSION INCOME AMOUNT

 

Taxpayers receiving certain pension income may claim both a federal and provincial/territorial pension income tax credit. In order to qualify for the pension income amount, you must have reported pension income on lines 115, 116 or 129 of your income tax return. Pension payments that qualify you for this credit include payments from Pooled Registered Pension Plans, Registered Retirement Income Funds, Registered Retirement Savings Plans, annuities and foreign pensions.

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However, there are three exceptions to this list. If you only report income from an Individual Retirement Account from the United States or another tax-free foreign pension plan, you cannot claim this amount.

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Similarly, if you have reported income on line 115 from an RRIF withdrawal that was immediately transferred to another RRIF, an RRSP or an annuity, you cannot claim the pension income amount from that income exclusively.

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For example, if you only report pension income from an RRIF that was transferred to another RRIF, you cannot claim the pension income amount. However, if you also report pension income from one of the other approved sources, you may claim the credit.