In 2013, the full age amount you can claim on line 301 on Schedule 1 is $6,854 giving you a tax credit of $1,028. However, the age amount you are able to claim is reduced by 15% of your net income (at line 236 of your tax return) in excess of $34,562. The age amount will work out to zero at an income of $80,256. That means you are not entitled to any age amount if your net income reached $80,256 level. These amounts are indexed annually, so they change year by year.
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An Example
John turned 65 in 2013. His income for the year (at line 236 of his return) is $50,000. His age amount is reduced by $2,315.70 calculated by (50,000-34,562) x 15%. This means he can claim $4,538.30 ($6,854 – $2,315.70) on line 301 on schedule 1 of his tax return as his age amount. This gives him a federal tax saving of $680.75 ($4,538.30 x 15%).