Deduction for retirement income transferred to your spouse - QuebecFrom now on, to make the choice to transfer a portion of your retirement income to your spouse on December 31, you should be 65 years of age or older at the end of the year.
The deduction for retirement income transferred to your spouse will be entered on line 245 of the Quebec return. While the federal deduction will be entered on line 2100 of the federal return.
You are entitled to this deduction if you were 65 years or older at the end of the tax year, had a spouse and you have both decided that part of your retirement income should be included in your spouse's income.
In its calculations, the program considers the rules governing pension income splitting. It considers all the factors involved to determine the optimal amount of pension income to be transferred to the other spouse.
However, if you and your spouse file your income tax returns separately, the program will not maximize the pension income splitting.
If you want to change the split, proceed as follows:
1. On the "Left-side menu of the Interview tab", select "Pension income, T4A, split pension".
2. On the page to your right, choose the option "Split pension income with your spouse".
3. For the line "Do you wish to split eligible pension income with your spouse for Quebec purposes?", from the drop-down menu on your right, choose the option that suits you best among the following three:
a) Let MaxBack decide.
b) Transfer to spouse (if eligible). If you choose this option, you must specify the amount that you transfer.
c) Do not transfer to spouse.Moreover, under the "Tax return" tab, you will find a document entitled "Report on split-pension income". By reviewing this report, you will be able to determine which one of the possible pension incomes splitting scenarios is the most beneficial for your couple.
However, please note that if you have chosen "Do not transfer to spouse" from the drop-down menu on the "Splitting of pension income between spouses" page, no report will be produced. Although the decision is up to you, keep in mind that if you wish to take advantage of pension income splitting, you must file your tax returns jointly.
For more information, please consult the following links:
ID: 20210903091753DE.xml
Webpage: KPA365-20210903091753DE.htm