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T1
427 Pension income
I have cases where the program splits only a few dollars or no amount at all even though the taxpayer has more than $100,000 of income and has eligible pension income to split, is this correct?It depends, the program fails to choose the proper pensioner when ALL the following criteria are met:a) Only one or both spouses have an amount on line 113 of their T1 return b) Both spouses have eligible pension income on line 314 of Schedule 1 c) The net income of the higher net income spouse minus the maximum split-pension amount (T1032, line D) equals an amount that is greater than $103,191 (e.g. (net income = $125,000) - (maximum split-pension amount = $15,000) = $110,000, the criterion is met in this example as $110,000 is greater than $103,191) d) The net income of the lower net income spouse is less than $63,511 When all the above conditions are present the program selects the lower net income spouse as pensioner whereas it should select the higher net income spouse. As a workaround, go in the higher net income spouse's file, enter the Optimize keyword, select option T1 Split pension amount, then under the CONTROL keyword, choose option Transfer to spouse. No need to enter an amount as, by doing so, the program will optimize the split-pension amount. |
