In 2014, the full age amount you can claim on line 301 on Schedule 1 is $6,916 giving you a tax credit of $1,037.40. 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 $34,873. The age amount will work out to zero at an income of $80,980. That means you are not entitled to any age amount if your net income reached $80,980 level. These amounts are indexed annually, so they change year by year.
An Example
John turned 65 in 2014. His net income for the year (at line 236 of his return) is $50,000. His age amount is reduced by $2,269.05 calculated by (50,000-34,873) x 15%. This means he can claim $4,646.95 ($6,916 – $2,269.05) on line 301 on schedule 1 of his tax return as his age amount. This gives him a federal tax saving of $697.04 ($4,646.95 x 15%).