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Level 1
posted Jan 4, 2024 4:01:31 PM

pension income splitting optimizer

I have found that the pension income splitting optimizer will sometimes suggest an amount that makes one spouse have a "Net income before adjustments" that is very slightly larger than the "Social benefit repayment" amount ($86912 in 2023).  When this happens it gives a warning about getting some OAS clawback in the following tax year.

This is probably completely unnecessary, given that slightly lowering the pension splitting amount will make it less than or equal to the amount for which there is no clawback.  As such, I would suggest adding an extra step in the calculation of the optimal split amount, where there is a check to consider a small adjustment that will avoid OAS clawback but will also give the lowest taxation.

 

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Moderator
Jan 4, 2024 5:50:11 PM

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