Do both spouses have to be 65 to split pension income?

Pension payments from programs such as CPP (Canada Pension Plan) and OAS (Old Age Security) are not eligible for pension splitting regardless of age. If you are the recipient of the pension and are 65 or older, you may split income from your RRSP, RRIF, life annuity, and other qualifying payments.

Does pension splitting affect OAS?

You also do not have to transfer the pension income you allocate for tax purposes to your spouse. This includes pension income splitting. You should also be aware that pension income splitting may impact certain government benefits and tax credits such as OAS.

What are the new Tosi rules?

Under the current income tax rules, the TOSI applies the highest marginal tax rate (currently 33%) to “split income” of an individual under the age of 18. In general, an individual’s split income includes certain taxable dividends, taxable capital gains and income from partnerships or trusts.

How much can I split my pension with my spouse?

When you report eligible pension income, you may be entitled to an additional credit called Pension Income Amount of up to $2000. Pension splitting may qualify a spouse who doesn’t directly receive pension income to claim this extra amount as well.

When is pension income not eligible for splitting?

Additionally, if you have lived apart due to a relationship breakdown for more than 90 days throughout the year, you are not eligible for income splitting. Which pension income is eligible for splitting depends on both the age of the pensioner and the type of pension received.

Can a person live apart from their pension?

You are allowed to live apart if the reason is related to work, school or medical necessity. However, if you live apart due to a breakdown in your relationship, you cannot split your pension income. Which pension income is eligible for splitting depends on both the age of the pensioner and the type of pension received.

Can you split your pension with your spouse in Quebec?

It is important to note that Quebec taxpayers under 65 are no longer able to split pension income for provincial income tax purposes only. You may transfer up to 50 percent of your pension to your spouse or common-law partner.