Pension Income Splitting - New for 2007
Canadian residents who received pension income that is eligible for the pension income amount may be able to allocate up to half of their eligible pension income to their spouse (or common-law partner) for income tax purposes.
Eligible pension income is generally the total of the following amounts received by the pensioner in the year (these amounts also qualify for the pension income amount):
- the taxable part of annuity payments from a superannuation or pension fund or plan; and
- if received as a result of the death of a spouse or common-law partner, or if the pensioner is age 65 or older at the end of the year:
- annuity and registered retirement income fund (including life income fund) payments; and
- Registered Retirement Savings Plan annuity payments.
To be eligible for this election, a taxpayer and his/her spouse or common-law partner must meet all of the following conditions:
- The taxpayer and his/her spouse or common-law partner were not, because of a breakdown in the marriage or common-law partnership, living separate and apart from each other at the end of the year and for a period of 90 days commencing in the year.
- The taxpayer and his/her spouse or common-law partner are residents of Canada on December 31 of the year.
- The taxpayer received pension income in the year that qualifies for the pension income amount.