How does the Pension Splitting Optimizer work?
The TurboTax Pension Splitting Optimizer automatically proposes the best distribution of your pension income (up to one half), which can help you and your spouse/partner pay less in taxes. This feature helps you benefit from the Canada Revenue Agency’s pension-income splitting feature.
Not all pension income is eligible for splitting; TurboTax considers everything you’ve entered in your tax returns and determines the amounts that can be split with your spouse.
Then, it shows you a comprehensive view of the different ways you can split your pension income and recommends the best split. You can choose to go with the recommendation or pick a different split!
If you are married or living common-law, one or both of you receive pension income, and you are in different tax brackets, it might make tax sense to split your pension income.
- The Pension Splitting Optimizer is included in all online editions of TurboTax except for TurboTax Free.
- TurboTax's Pension Splitting Optimizer is available only if you're preparing your and your spouse's returns together at the same time.
- How do I split my pension income with my spouse?
- Are there disadvantages to splitting my spouse's pension income?