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New Member

What is TOSI and does it apply to me?

1 Reply
Level 1

What is TOSI and does it apply to me?

As per this TurboTax blog: Income Splitting Benefits, Tax on split income (TOSI) enables you to split your taxable income with your spouse to help save money. This allows the spouse with a higher taxable income to reduce their tax payable by transferring some of their taxable income to the spouse in the lower tax bracket. This can reduce the couple’s overall taxes owed.

As per CRA, Tax on split income (TOSI) only applies to certain types of income of a child born in 2003 or later, as well as to amounts received by adult individuals from a related business. 


I also strongly recommend to check this CRA website: Frequently asked questions - income sprinkling for more information about TOSI rules.


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