Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
English EN

Pick a language

Canada Français United States of America English
cancel
Showing results for 
Search instead for 
Did you mean: 
Sam22
New Member

Pension Income splitting?

Does turbo tax reallocate income tax paid on pension income when pension income is split with spouse?  How does it know the correct amount, for example if the transferee has paid income tax on both pension and non-pension income in the year?  Do I have to adjust this manually, and if so how?
1 Best answer

Accepted Solutions
TurboTaxJeffrey
New Member

Pension Income splitting?

When pension income is split, the tax associated with that pension income is also split in the same ratio.  Tax deducted from non eligible income is not affected.  And no, you do not adjust what is transferred manually.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/txddctd-eng.html

View solution in original post

5 Replies
TurboTaxJeffrey
New Member

Pension Income splitting?

When pension income is split, the tax associated with that pension income is also split in the same ratio.  Tax deducted from non eligible income is not affected.  And no, you do not adjust what is transferred manually.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/txddctd-eng.html

mrain1949
New Member

Pension Income splitting?

Is the income splitting calculation done electronically on the standard turbo tax?

TurboTaxHeba
Intuit Alumni

Pension Income splitting?

Yes, the standard TurboTax optimizer the Pension Splitting automatically. for further information on how TurboTax optimizes the Pension spitting, please check this link:

 

https://turbotax.community.intuit.ca/community/pension-retirement/help/how-does-the-pension-splittin...

 

I hope this was helpful

 

 

Buttsgirl1
New Member

Pension Income splitting?

This is my first year doing income splitting. The pension amount is only one cheque $5414. I know i can only take half. Why does the program only give me $225. Wouldn't it be in my husbands best interest to put half on me as i am in a lower tax bracket? Taking half does nit put me in  higher bracket. Do i change it manually? Or am i missing something? The struggle is real. Help

TurboTaxGinette
Moderator

Pension Income splitting?

You are correct that it would be beneficial to use a higher percentage of pension to split.

 

Please verify the steps to follow in our TurboTax FAQ for guidance: How do I split my pension income with my spouse?

 

For more information please see our TurboTax article Understanding Pension Income Splitting for Seniors

 

Thank you for using TurboTax.

v