Can my wife and I use income splitting to reduce the tax impact of a Pension Lump Sum payout? We both work full time.

First, it depends on your pension income source, whether it is eligible for splitting or not.

From what you said, you are both high-income earners. Pension income splits are only worth considering if you have a higher marginal tax bracket than your spouse.

 

For more information and which pension income is eligible for splitting, please click:

TurboTax  Understanding Pension Income Splitting for Seniors or 

Tax Tip: Income splitting benefits.

 

Thank you for choosing TurboTax.