Aaron, aged 65 and Abbie, aged 63 are married. Aaron received OAS of $4,000 and pension income of $65,000 from a plan that was sponsored by his former employer. If Aaron shares the maximum amount of pension income with Abbie, what will his Net Income For Tax Purposes be?

Question

Quizplus · Accepted Answer

The maximum amount of pension income that Aaron can share with Abbie is 50% of his pension income, which is $32,500 ($65,000 x 50%). Therefore, his Net Income For Tax Purposes would be $4,000 (OAS) + $32,500 (shared pension income) = $36,500.

Aaron, Aged 65 and Abbie, Aged 63 Are Married