Pension Splitting Not Reducing Amount Allocated to Spouse - how do I resolve this?

[blairmaca]

I have allocated the maximum amount allowed as part of a pension split but the summary shows 100% of the amount as my pension and 50% of the amount as my spouses pension.  Therefore taxed on 150% of the pension income.  Anyone having the same problem?

[TonyC11 · Accepted solution]

Pension splitting is working fine, used it myself to good effect.

In Pension Splitting, you the Pensioner opt to assign an amount up to 50% of your Eligible Pension Income to your partner, the Transferee. Also the tax on this amount of income is split
In the same proportion.

You the Pensioner do not see your Total Income change at all. What you see is a Deduction equal to the amount of split income. The Transferee sees an additional income item on their return. So what changes is your Net Income, line 236.

Simple example, excluding tax transfer.
You have $50,000 Income and Net Income, of which $20,000 is eligible.
You opt to split the maximum amount.
Your Total Income line 150 stays $50,000 but your Net Income now reduced to $40,000
Your spouse Income and Net Income both increase by $10,000.

[jc17]

Very  clear  THANK YOU!!

[vgreening]

I understand how it works but where in Turbo Tax do i select i want to do the split income?

[soon_2]

The Online Version for us Mac users is crap.  I can split my pension but am unable to add to my wife because it refers to Form 1032 which of course is non existent in their program.  Also there has to be a way to transfer the applicable tax to my wife also.  I spent 1 1/2 hours with some one over seas and they can not explain it to me, so if there is some one in Canada that has done this I would appreciate your help, other wise I will try the U file program.  Tony K.

[TonyC11]

Yes I have done this and it works fine. Form 1032 is generated.
Are you using joint spousal prep or individual?

[TonyC11]

If you are unclear how pension splitting works, be sure to use joint prep mode and just answer the profile questions correctly. You will only be asked to specify how much you want to split, and from which partner to the other.
Turbotax will automatically adjust Net Incomes and taxes paid for each partner, as well as generating the T1032 form. As well, in joint prep mode you will be able to use the Split Optimizer tool, rather than figure it out manually.