TurboTax will automatically recommend a split amount based on the income and other amounts you enter in your return.
Additionally, you can try the Pension Splitting Optimizer. The Pension Splitting Optimizer will automatically propose the best distribution of your pension income (up to one half), which can help you and your spouse/partner pay less in taxes.
Note: The Pension Splitting Optimizer is only available when doing a coupled return.
The amount of pension income that can be split is indicated on the transferor's T1032 form. Pension income doesn't have to be split equally (50/50). You can choose the most beneficial amount to transfer to your spouse, as long as it doesn't exceed 50% of your eligible pension income. Pension splitting can impact other tax credits and calculations. You should review these claims before and after transferring pension income:
- Age amount (line 301)
- Medical expenses (line 330)
- Donations and gifts (line 349)
- Social benefits repayment (OAS claw-back) (line 235)
- Spouse or common-law partner credit (line 303)
- Pension income amount (line 314)
- Amounts transferred from your spouse or common-law partner (line 326)
You can choose to override the recommendation by changing the amount in the field to any amount up to the maximum split amount allowed.