Pension income splitting - Spouses filing separatelyIf you and your spouse file your income tax return separately, the program will not maximize the pension income splitting.
However, you can still calculate what the pension income splitting could represent for your couple if you wish. For the program to optimize the pension income splitting, you must enter your tax information as well as your spouse's.
To do so, please follow these steps:
1. On the "Left side menu of the Interview tab", select "Spouse interview type".
2. In the page that appears on the right, online "What information will you provide for your spouse?", choose "Complete information (recommended)" from the drop-down menu.
3. Return to the "Left side menu on the Interview tab", select the item " T4A and Pension income " and on the screen to the right, choose "Split pension income with your spouse".
4. On the page that appears, for the line "Do you wish to split eligible pension income with your spouse?", choose the appropriate option from the drop-down menu. For Quebec residents, complete the second section that is specific to Quebec.
5. Enter all the information from slips with an amount of pension income eligible for splitting, particularly the information displayed on the T4A, T4RIF and T4RSP slips. We also suggest that you consult the following links:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-314-pension-income-amount/you-claim-pension-income-amount-3.htmlhttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-314-pension-income-amount/you-claim-pension-income-amount-5.html
6. In the left-side menu under the fourth tab "Tax Return", select the line "Report on split-pension income" and then you can decide whether it's beneficial to make the pension income splitting.
However, please note that if you have chosen "Do not transfer to spouse" from the drop-down menu on the page "Splitting of pension income between spouses", no report will be generated. Although the decision is up to you, keep in mind that if you wish to take advantage of the pension income splitting, you must file your tax returns jointly.
For more information regarding pension income splitting, please consult the following link:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting.htmlID: 20210722124348NA.xml
Webpage: KPA375-20210722124348NA.htm