TaxTips.ca
Canadian Tax and
Financial Information
Pension Tax Credit When Splitting Pension Income

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Filing Your Return  -> Pension income tax credit -> - Pension tax credit when splitting pension income

When Pension Income is Split With a Spouse, 
    Will the Spouse Get a Pension Income Tax Credit?

Up to 50% of pension income that is eligible for the pension income tax credit may be transferred to a spouse or common-law partner.  See our article on pension splitting.  The splitting of pension income may allow the spouse to claim a pension income tax credit.  An officer of the Department of Finance advised that:

bullet where pension income which does not fit the description of qualified pension income has been transferred to a spouse, the spouse will not be eligible for the pension income tax credit unless they are 65 or older, and
bullet where pension income which fits the description of qualified pension income has been transferred to a spouse, the spouse will be eligible at any age for the pension income tax credit based on the transferred amount.

The intent is that if the pension income would have been eligible for the pension income tax credit if received directly by the spouse, it will also be eligible when received as a transfer of pension income.

bullet If a taxpayer is under 65 and receiving pension income eligible for the pension tax credit (qualified pension income), the spouse will also be eligible for the pension tax credit, regardless of age.
bullet If a taxpayer is 65 or older and receiving pension income that would not be eligible for the pension credit if received by a person under 65, a spouse under 65 will not be eligible for the pension credit based on the transferred pension income.
bullet If a taxpayer is 65 or older and receiving pension income that would be eligible for the pension credit if received by a person under 65, a spouse will be eligible for the pension credit, regardless of age.  When this situation applies, see Completing Step 4 of the T1032.

Back to Pension Income Tax Credit

Revised: September 19, 2017

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.