"What is pension income splitting?
Beginning with 2007 income tax returns, Canadian residents will generally be able to allocate up to one-half of their income that qualifies for the existing pension income tax credit to their resident spouse (or common-law partner) for income tax purposes.
The amount allocated is deducted in determining the net income of the person who actually received the pension income, and it is included in computing the net income of the spouse or common-law partner. Pension splitting affects the calculation of income and tax payable for both persons, so they must both agree to the allocation in their tax returns for the year in question."
The Federal Superannuates National Association Kingston & District Branch, c/o Box 1172, Kingston, Ontario K7L 4Y8, Telephone 1-613-384-2440 .-. Click on a comment link to express your view on a post. Alert a friend, to a post, by clicking on its envelope icon.
Sunday, September 09, 2007
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