Personal Tax: Pension Split

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General Personal Tax Information

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Personal Tax
Pension Income Splitting Starting with 2007 income tax returns, Canadian residents will be able to allocate up to on half of their income that qualifies for the existing pension income tax credit to their resident spouse for income tax purposes. A pension recipient and his or her spouse can choose to split the "eligible pension income" for that year if they are married or in a common-law partnership with each other in the year, and are not living separately due to a breakdown in relationship at the end of the year or for a period of 90 days commencing in the year. Income tax that is withheld at source will be allocated in the same proportion as the pension income is allocated. Eligible pension income is generally the total of the taxable part of annuity payments from a superannuation or pension fund or plan. If received as a result of the death of a spouse or if the pensioner is 65 or older at the end of the year, the annuity and registered retirement income fund (including life income fund) payments, and RRSP annuity payments also qualify. Please note: Old Age Security and Canadian or Quebec Pension Plan Payments do not qualify. Pension Splitting will not affect the GST/HST credit.

Personal Tax

Pension Income Splitting

Starting with 2007 income tax returns, Canadian residents will be able to allocate up to on half of their income that qualifies for the existing pension income tax credit to their resident spouse for income tax purposes.

A pension recipient and his or her spouse can choose to split the "eligible pension income" for that year if they are married or in a common-law partnership with each other in the year, and are not living separately due to a breakdown in relationship at the end of the year or for a period of 90 days commencing in the year.

Income tax that is withheld at source will be allocated in the same proportion as the pension income is allocated.

Eligible pension income is generally the total of the taxable part of annuity payments from a superannuation or pension fund or plan. If received as a result of the death of a spouse or if the pensioner is 65 or older at the end of the year, the annuity and registered retirement income fund (including life income fund) payments, and RRSP annuity payments also qualify.

Please note: Old Age Security and Canadian or Quebec Pension Plan Payments do not qualify.

Pension Splitting will not affect the GST/HST credit.