2019 Income tax changes

Income tax changes effective January 1, 2019 may mean the after-tax amount of your monthly pension or Variable Benefit (VB) payments in 2019 could be different than the amount you received in 2018.

If you are aged 65 or older and your total net income in 2019 is less than the federal and provincial base amounts, you can claim the full Age Amount when calculating your federal and provincial income tax payable for 2019. However, if you are 65 or older and your total net income exceeds the base amount but is less than the maximum amount for 2019, your Age Amount is reduced by 15% of your net income in excess of the base amount. If you are 65 or older and your total net income exceeds the maximum amount for 2019, you will not be eligible for any of the Age Amount.¹

If you are turning 65 in 2019, the CSS Pension Plan will send you federal and provincial Personal Tax Credits Return (TD1) forms and applicable worksheets early in 2019. Once you receive the TD1 forms you should complete and return them, as you may be eligible for all or part of the federal and provincial Age Amounts. The applicable worksheets will help you calculate how much of the Age Amount you are eligible for if you expect your 2019 total net income to exceed the base amount. 

If you are already 65 or older, you should keep the above in mind if you expect your 2019 total net income to exceed the base amount. If you fall into this category, you can arrange to have extra income tax withheld from your monthly pension or VB payment.  

In addition to the CSS Pension Plan's office, the 2019 TD1 forms and applicable worksheets will be available on the Canada Revenue Agency (CRA) website or by calling CRA at 1-800-959-2221, but not until late 2018 or early 2019. Retirees who need help completing the TD1 forms can call the CRA general enquiries line toll free at: 1-800-959-8281.

T4A slips

The 2018 T4A slips will be mailed directly to retirees by mid-February 2019. Please watch your mail and retain this slip when it arrives, as it will be required when filing your 2018 income tax return. CRA regulations state that a T4A slip must only be issued when total payments for the year are more than $500.

If your total payments from the CSS Pension Plan for 2018 are less than $500, you will not receive a T4A. However, you still must declare the total payments received in 2018 on your income tax return. 

If you move, please be sure to advise the CSS Pension Plan of your new mailing address.

Pension Income Amount and Pension Income Splitting 

Regardless of your age, if you are receiving monthly pension payments from the CSS Pension Plan, you qualify for the Pension Income Amount (i.e., when calculating your tax credits) on your income tax return. These payments also qualify for the Pension Income Splitting provision, also regardless of your age.²

If you are receiving VB payments, they do not qualify for the Pension Income Amount or the Pension Income Splitting provision until you are age 65.