(1) Subject to section 13 a resident individual is entitled to an allowance of $1,500 in respect of his or her spouse if, at any time during the year of income the spouse is living with him or her or is maintained by and not separated from him or her in circumstances in which he or she is entitled to a deduction under section 47.
(2) The deduction allowable under this section is reduced where the spouse has assessable income in excess of $1,500 by $1 for each dollar of the excess.