Time to catch up on pension splitting tax savings
Up until a few years ago, households where one retiree’s income was greater than their partner’s ended up paying significantly more tax than a household with a similar total income, but split evenly.
Now, however, pensioners are able to split their corporate pension plan income with their spouse or common law partner. Previously, they were unable to split any pension income, except in the case of the Canada Pension Plan.
To be eligible to split pension income, your spouse or common-law partner must be resident in Canada and you must be living together at the end of the year.
If you’ve been missing out on this somehow, here’s the good news: The election to split pension income can be made for up to three years after the election due date, notes tax planner Evelyn Jacks. Therefore, if you qualify, you’re still eligible to make the election for the past three tax years by filing the T1032 form with CRA.
By Gordon Powers, MSN Money
Posted by: TAX WIZZZZZ | Jun 24, 2021 9:27:24 PM
Best move to do, also to have removed additionnal tax of 15% on Old Age security, line 303 credit for 65years and older, medical expenses, provincial income tax and lucky enough maybe you can lower your tax bracket !!!!! For the spouse maybe rack up and use the rest of the RRSP limit a nice tax savings. If you dont have the cash, you can estimate the tax savings and borrow the funds, a nice double tax savings and extra money in the future for ........ ?????