Solved: Saw a paper article , saying that " by claiming th...

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Saw a paper article , saying that " by claiming the pension income credit, you could save taxes" What and where is the "pension income credit"?

 
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New Member

Saw a paper article , saying that " by claiming the pension income credit, you could save taxes" What and where is the "pension income credit"?

Pension income may be credited up to $2000 annually

This is a non-refundable credit at a rate of 15% for Federal tax, which means a tax saving of $300 each year per taxpayer of federal tax. Not great,and hasn't been updated since 2006!

Pension income may qualify for this credit, depends what source

To make it simple  your CPP and OAS do NOT qualify

Most other pension income DOES qualify, including government and private sector employee pension plans , foreign pensions and RIF payouts ( age dependant).

In some cases, partners can split pension income, permitting both people to enjoy individual credits, up to a total of $4000 credit per family.

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Highlighted
New Member

Saw a paper article , saying that " by claiming the pension income credit, you could save taxes" What and where is the "pension income credit"?

Pension income may be credited up to $2000 annually

This is a non-refundable credit at a rate of 15% for Federal tax, which means a tax saving of $300 each year per taxpayer of federal tax. Not great,and hasn't been updated since 2006!

Pension income may qualify for this credit, depends what source

To make it simple  your CPP and OAS do NOT qualify

Most other pension income DOES qualify, including government and private sector employee pension plans , foreign pensions and RIF payouts ( age dependant).

In some cases, partners can split pension income, permitting both people to enjoy individual credits, up to a total of $4000 credit per family.

View solution in original post

Highlighted
New Member

Saw a paper article , saying that " by claiming the pension income credit, you could save taxes" What and where is the "pension income credit"?

thanks, just wondering for Turbo Tax does non-refundable credit automatically? and if so on what form # . - Thanks
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New Member

Saw a paper article , saying that " by claiming the pension income credit, you could save taxes" What and where is the "pension income credit"?

Yes, if the Pension income qualifies, then the Pension Credit kicks in ( to a maximum of $2000).
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