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Tax Fairness Plan: Information for Seniors
Senior's Tax Savings Calculator
Typical Tax Impact: Single Senior Individual
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| Proposed PIT Change | ||||||
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| Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total PIT Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 10,000 | 20,121 | 781 | -158 | N/E | -158 | -20% |
| 20,000 | 34,287 | 3,054 | -158 | N/E | -158 | -5% |
| 30,000 | 46,252 | 5,777 | -158 | N/E | -158 | -3% |
| 40,000 | 56,252 | 8,209 | -158 | N/E | -158 | -2% |
| 50,000 | 66,252 | 10,374 | 0 | N/E | 0 | 0% |
| 60,000 | 76,252 | 12,244 | 0 | N/E | 0 | 0% |
| 75,000 | 91,252 | 15,559 | 0 | N/E | 0 | 0% |
| 100,000 | 116,252 | 21,593 | 0 | N/E | 0 | 0% |
| 125,000 | 141,252 | 28,525 | 0 | N/E | 0 | 0% |
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| N/E Caveat
As a single senior, pension income spliting will not apply in your circumstances. |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $125,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 141,252 | 26,725 | -158 | -5,995 | -6,153 | -23% |
| 10,000 | 155,419 | 28,892 | -158 | -3,087 | -3,246 | -11% |
| 20,000 | 169,585 | 31,469 | -158 | -409 | -568 | -2% |
| 30,000 | 181,550 | 34,302 | -158 | N/A | -158 | -0.5% |
| 40,000 | 191,550 | 36,734 | -158 | N/A | -158 | -0.4% |
| 50,000 | 201,139 | 38,899 | 0 | N/A | 0 | 0% |
| 60,000 | 209,639 | 40,769 | 0 | N/A | 0 | 0% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $100,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 116,252 | 19,947 | -158 | -7,280 | -7,439 | -37% |
| 10,000 | 130,419 | 22,051 | -158 | -4,972 | -5,130 | -23% |
| 20,000 | 144,585 | 24,567 | -158 | -2,713 | -2,872 | -12% |
| 30,000 | 156,550 | 27,369 | -158 | -1,145 | -1,304 | -5% |
| 40,000 | 166,550 | 29,802 | -158 | N/A | -158 | -1% |
| 50,000 | 176,139 | 31,967 | 0 | N/A | 0 | 0% |
| 60,000 | 184,639 | 33,837 | 0 | N/A | 0 | 0% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $75,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 93,817 | 14,114 | -158 | -4,963 | -5,122 | -36% |
| 10,000 | 107,671 | 16,137 | -158 | -3,853 | -4,011 | -25% |
| 20,000 | 121,526 | 18,571 | -158 | -3,154 | -3,312 | -18% |
| 30,000 | 133,343 | 21,336 | -158 | -2,082 | -2,241 | -11% |
| 40,000 | 143,343 | 23,768 | -158 | -1,145 | -1,303 | -5% |
| 50,000 | 152,932 | 25,933 | 0 | -341 | -341 | -1% |
| 60,000 | 161,432 | 27,803 | 0 | N/A | 0 | 0% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $60,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 81,067 | 10,974 | -158 | -3,223 | -3,381 | -31% |
| 10,000 | 94,921 | 12,927 | -158 | -2,042 | -2,200 | -17% |
| 20,000 | 108,776 | 15,290 | -158 | -1,271 | -1,430 | -9% |
| 30,000 | 120,593 | 18,021 | -158 | -1,240 | -1,398 | -8% |
| 40,000 | 130,593 | 20,454 | -158 | -635 | -794 | -4% |
| 50,000 | 140,182 | 22,619 | 0 | N/A | 0 | 0% |
| 60,000 | 148,682 | 24,489 | 0 | N/A | 0 | 0% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $50,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 72,206 | 9,025 | -259 | -2,326 | -2,586 | -29% |
| 10,000 | 86,373 | 11,046 | -211 | -1,090 | -1,301 | -12% |
| 20,000 | 100,276 | 13,420 | -169 | -324 | -492 | -4% |
| 30,000 | 112,093 | 16,151 | -158 | -302 | -460 | -3% |
| 40,000 | 122,093 | 18,584 | -158 | -302 | -460 | -2% |
| 50,000 | 131,682 | 20,749 | 0 | N/A | 0 | 0% |
Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $40,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 62,206 | 6,650 | -317 | -1,676 | -1,993 | -30% |
| 10,000 | 76,373 | 8,719 | -317 | -1,090 | -1,406 | -16% |
| 20,000 | 90,539 | 11,200 | -317 | -124 | -441 | -4% |
| 30,000 | 102,504 | 13,986 | -317 | N/A | -317 | -2% |
| 40,000 | 112,504 | 16,419 | -317 | N/A | -317 | -2% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $30,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
| $ | $ | $ | $ | $ | $ | |
| 0 | 52,206 | 4,217 | -317 | -802 | -1,118 | -27% |
| 10,000 | 66,373 | 6,287 | -317 | -571 | -887 | -14% |
| 20,000 | 80,539 | 8,767 | -317 | -124 | -441 | -5% |
| 30,000 | 92,504 | 11,554 | -317 | N/A | -317 | -3% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $20,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 40,241 | 1,871 | -317 | -310 | -627 | -33% |
| 10,000 | 54,408 | 3,786 | -317 | -29 | -346 | -9% |
| 20,000 | 68,575 | 6,109 | -317 | N/A | -317 | -5% |
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Typical Tax Impact: Senior Couple
Higher-Income Spouse has Eligible Pension Income of $10,000
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| Proposed PIT Change | ||||||
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| Lower-Income Spouse's Eligible Pension Income | Family Income | Net Federal Tax | Age Credit | Pension Splitting | Total Impact |
% reduction in federal tax |
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| $ | $ | $ | $ | $ | $ | |
| 0 | 26,075 | 0 | 0 | N/A | 0 | 0% |
| 10,000 | 40,241 | 1,561 | -317 | N/A | -317 | -20% |
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| N/A Caveat: You may still benefit from income splitting, by splitting less than 50% of your eligible pension income | ||||||
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| Last Updated: 2006-11-23 |
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