Joint Election to Split Pension Income (T1032)
In order to split pension income amongst spouses, an election must be filed by each spouse. This election re-allocates eligible pensions between tax returns to reduce taxable income and combined taxes payable. The pension income can be split up to 50% for certain types of “eligible” pension income sources.
Disclaimer: Articles are for general information only and do not constitute tax advice. They cannot be relied upon.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handling disputes with CRA.He also published an article recently in the business magazine: HERE.