camembury
New Member

When I review my income summary, I notice that the pension split I made is not reflected in the my income (by reducing it) but does increase my spouses income.

 

Seniors and students

In Pension splitting, the Pensioner (you) amount is a deduction from income. Your Net Income and Taxable Oncome are reduced by your split amount.

Your partner (Transferee) receives the amount right into their Total Income.

Note also that a proportion of the tax paid on the Pension also gets transferred from you to your  partners tax paid.

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John117
New Member

Seniors and students

so if I get this right, when I split my pension income, my gross income stays the same in the review, my wife's income goes up, but my net income will be reduced at the end. I was confused when I did the review, my gross is the same but my wife's when up and if you add the two together the total is not right for total family income. 

 

so gross stays the same but net is reduced, will I see that when I file?

 

thanks,

 

John

Seniors and students

@John117

 

When splitting eligible pension income this is normal, in that the total of your eligible pension income, $15,000, will be included in your Total income and $7,500 will be included in your spouse's total income.  As you proceed through your return, you will note that the amount that you split with your spouse, $7,500 will be claimed as a deduction from your total income when calculating your Net income, thus removing the amount from your Taxable income.

 

And "yes" you will see this when you file.