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New Member
posted Oct 30, 2019 4:45:40 PM

Why when I pension split does my wifes total income increase by the amount of split but mine does not decrease at all??

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2 Replies
New Member
Oct 30, 2019 4:45:42 PM

There are a few situations that affect income splitting. 

"Because pension splitting changes the net income of both spouses, it’s important to consider any impacts beyond your tax return. While pension splitting can drop one spouse’s net income low enough to avoid an OAS clawback, in some cases the spouse receiving the transfer may be pushed over the income limit. Other programs such as long-term care subsidies also consider net income when determining eligibility so be sure to research any limits when deciding if pension splitting is right for you." 

TurboTax Standard, Premier, and Self-Employed editions include a Pension Income Splitting Optimizer that will help you divide your pension income between spouses for your maximum refund. 

You can read more about it here: https://turbotax.intuit.ca/tips/pension-income-splitting-lets-you-split-your-income-with-your-spouse...


New Member
Mar 25, 2023 8:57:56 AM

The pension splitting appears to increase our total income because my income is not decreased by the amount of the split. The reply does not explain why this is? If it is truly income splitting, then shouldn’t my pension income decrease by the amount that my spouse’s income increases?