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

[tukyank]

Roughly half per pension payout went in a LIRA, the other half was a lump sum payment, but only 30% was paid in tax for the lump sum, and we are both high income earners.

[Tom_Cheng]

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.