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T1
427 Pension income

Print this pageForward this document  Pension income splitting: T4A-RCA box 17 and step 5 on Form T1032

Program(s) affected: T1 Document created: 03 31, 2014
Tax year(s): 2013 Document last modified:
Version(s): 17.10, 17.11, 17.12, 17.13, 17.14, 17.15 Problem status: Fixed in v17.20

My client has received a T4A-RCA with an amount in box 17 and income tax deducted in box 16. When calculating to determine the part of the tax deducted that relates to the elected split-pension amount, under which circumstances is this calculation incorrect (lines O and P of Form T1032)?

There are two possible scenarios:

1) There is an amount on line A and the amount displayed on line 2 of Form T1032 is $0.00;

2) There is an amount on line A and the amount displayed on line 2 of Form T1032 is over $0.00 but lower than the amount on line 1.

In both cases, the amount entered on line O* is higher than it should be. This causes the inaccurate splitting of the deducted income tax.

*For Quebec residents, the same rationale applies to the calculation of the amount entered on line 50 of Schedule Q.

Please recalculate the return with version 17.20 in order to get the correct results.