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Intuit

How does the Pension Splitting Optimizer work?

 

 

 

If you are married or living with a common-law partner, you receive pension income, and you are in different tax brackets, it might make sense to split your pension income.  

 

The TurboTax Pension Splitting Optimizer automatically calculates the best distribution of your pension income, which can help you and your spouse/partner pay less in taxes. TurboTax considers the totality of information entered into your tax returns, then determines the amount(s) that can be split with your spouse (up to one half).  

 

You are also shown a comprehensive view of the different ways you can split your pension income, and TurboTax will recommend the best option to optimize your return. The option of choosing the recommendation or picking a different split is entirely up to you!  

 

Note:

  • Not all pension is eligible for splitting
  • The Pension Splitting Optimizer is included in all online editions of TurboTax except for TurboTax Free.
  • TurboTax's Pension Splitting Optimizer is available only if you're preparing your and your spouse's returns together at the same time.

 

 

 

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