Robert is 66 and so qualifies for the age amount.His taxable income for 2014 was $65 000.The threshold income for the age amount is $34 873 and the maximum age amount is $6915.What age amount will he qualify for?
A)$3710
B)$2397
C)$6916
D)zero

Question

Quizplus · Accepted Answer

The age amount is reduced by 15% of the amount by which the income exceeds the threshold. In this case, Robert's income exceeds the threshold by $30,127 ($65,000 - $34,873). Therefore, the reduction to the maximum age amount is:
$30,127 × 0.15 = $4,519.05

Subtracting this reduction from the maximum age amount gives:
$6,915 - $4,519.05 = $2,395.95

Since this amount is less than the minimum age amount of $2,466, Robert's age amount will be reduced to zero. Therefore, the correct answer is D (zero).

Robert Is 66 and So Qualifies for the Age Amount