Does turbotax pension splitting optimizer consider transfers which may result in higher total tax for the spouses but which is offset by increased OAS in future years?

[crawb]

Does the pension splitting optimizer only determine an amount of pension transfer which produces the lowest combined tax for a couple; or does it also take into account pension transfers which may increase total tax in 2017 but which would be offset by greater old age security payments to one of the spouses in 2018-19? If my wife now transfers to me (the higher income spouse) a much larger amount of her pension than the optimizer recommends, resulting in her not having any old age security clawback, this causes a significant increase in our total tax for 2017 but it would be offset because my wife would receive greater OAS benefits after July, 2018 than she is now receiving.

Does the optimizer take into account future increases in OAS benefits?

[TurboTaxJennifer · Accepted solution]

No it does not.

The pension splitting optimizer only considers the bottom line for the tax return. If you have OAS clawback considerations, it's best to take those points into account rather than the optimizer.

https://turbotax.community.intuit.ca/replies/2647668

[Anonymous]

You should consider adding this option to the Pension splitting optimizer