Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 28, 2020 2:20:37 PM

When I split my pension income, it reduces my tax deducted from T4A slip on line 43700, and increases the same amount on my spouse"s contribution on line 43700. Why?

0 1 472
1 Replies
Level 15
May 28, 2020 4:21:34 PM

When you split your pension income with your spouse, not only is the income split, but the tax withheld is also split. The same percentage of tax deducted from that pension income that is added to the spouse's tax return is refunded to that spouse. 

 

From the following TaxTips.ca article: Thus, if 40% of the pension income is transferred to the spouse, 40% of the withholding taxes will also be transferred.

 

TaxTips.ca Pension Splitting