I am a new retiree and 60 years of age. I have T4RIF income which I thought was considered pension eligible income for the $2000 pension income adjustment. When I enter my RIF income, it does not include the pension income adjustment. Why would this be?
Unfortunately, RRIF income is not eligible for the $2,000 pension income tax credit until you are age 65.
Thank you!
I thought that may be the case but wanted to check because my husband, who is 58, newly retired, receives a pension. The $2000 PA show up for him. Do you know why he is eligible at 58?
Some types of retirement income are eligible for the $2,000 PA before age 65, and other types are not. These are CRA's rules, and I don't know the history that led to this difference.
However, when you are doing your taxes, if the numbers work out such that your husband can assign $2,000 of his pension income to you, then you too will benefit from the $2,000 PA. TurboTax will help you discover if this is a possibility. Look for the Pension Splitter Optimizer in the SUM UP section (that's where it is in TurboTax Premier download). Basically, your husband needs to be receiving $2,000 more income than you, which he can then assign to your income.