Thank you for choosing TurboTax. If you receive a larger pension than your spouse or common-law partner, it may be beneficial to transfer over a portion of your income on your tax return. This technique reduces your taxable income by shifting a portion to the lower-earning partner, thus reducing your overall tax burden as a retired couple or household.
In order to check the eligibility of split please refer to our blog on: Understanding Pension Income Splitting for Seniors and Facts Every Canadian Needs to Know About Filing Coupled Tax Returns
As per CRA, You can allocate up to half (50%) of your eligible pension income to your spouse or common-law partner. Only one joint election can be made for a tax year. If both you and your spouse or common-law partner have eligible pension income, you need to decide who will act as the transferring spouse or common-law partner electing to allocate part of their eligible pension income to the receiving spouse or common-law partner.
Using tax software like TurboTax makes it super easy with the Pension Income Splitting Optimizer. We will ask you all the right questions and do all the calculations for you. Form T1032 has to be completed by both spouses (meaning both spouses have to agree to the split) and attached to both returns.
Hope this helps.
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