Easy Step option still does not handle IRA income correctly.
First require a downloaded version of Turbo Tax so have access to forms.. In the Easy Step, enter IRA as foreign non business income. There should be a separate IRA income line OR do not treat "foreign non business income" as pension splitable, which it does.
My reference at this point in the following is so that pension splitting is done correctly; especially allocation of tax to my wife..
To correct this you need to access the Pension splitting form T1032 and the underlying Pension Worksheet.
The Pension Worksheet is set up with a line to enter IRA income in the IRA line, which in turn the worksheet will subtract from pensions eligible for splitting. That "corrected" amount will now be reflected automatically on the T1032 as the correct pension income subject to splitting.
For me, that reduces eligible pension income to RIFFs which have tax withheld on monthly disbursements.
So if I split 1/3rd of the RIFF income to my wife, she will also get 1/3 of the taxes withheld.
If I did not remove IRA income from pension eligible for splitting, then not enough tax would be transferred to to her. Easy Step includes the IRA income but not the tax withheld, paid to Uncle Sam.
Download version of Turbo Tax is required because the On Line version does not allow access to forms until AFTER have filed.
I discuss this every year with Turbo Tax but still not corrected.
Darryl Harper
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