Pension Income Splitting (Tax Accountant Brampton)

Pension Spitting

Tax Accountant Brampton

If you and your spouse or common-law partner have jointly elected to split your eligible pension income by completing Form T1032, Joint Election to Split Pension Income, you (the pensioner) can deduct on this line the elected split-pension amount from line E of Form T1032. No funds are actually transferred using pension splitting – it is simply a method for reducing the taxable income of one spouse by allocating income, on the tax return, to the other spouse, Tax Accountant Brampton

Form T1032 is to be filed by your filing due date for the  year (see “What date is your return for 2010 due?”. This form must be attached to both  your and your spouse’s or common-law partner’s paper returns. The information provided on the forms must be the same. If you are filing electronically, keep your election form in case CRA ask to see it by Tax Accountant Brampton.

Only one joint election can be made for a tax year. If both you and your spouse or common-law partner have eligible pension income, you will have to decide if you are splitting your pension income or your spouse’s or common-law partner’s pension income.

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