Pension income splitting
Pension income splitting requirements
You and your spouse or common-law partner to split your eligible pension income if you meet all of the requirements:
- you are married or in a common-law partnership with each other in the year and were not, because of a breakdown in your 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 or more beginning in the year (see the note below); and
- you were both residents of Canada on December 31 of the year; or
- if deceased in the year, resident in Canada on the date of death; or
- if bankrupt in the year, resident in Canada on December 31 of the year in which the tax year (pre- or post-bankruptcy) ends.
- you received pension income in the year that qualifies for the pension income amount.
What is eligible ?
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 life annuity payments from a superannuation or pension fund or plan; and
- if they are received as a result of the death of a spouse or common-law partner, or if the pensioner is 65 years of age or older at the end of the year:
- annuity and registered retirement income fund (including life income fund) payments;
- registered retirement savings plan (RRSP) annuity payments; and
- certain amounts received under a retirement compensation arrangement.
What Pension is not eligible ?
The following amounts received by the pensioner are not eligible for pension income splitting:
- old age security payments;
- Canada Pension Plan, Quebec Pension Plan;
- any foreign source pension income that is tax-free in Canada because of a tax treaty that entitles you to claim a deduction at line 256;
- income from a United States individual retirement account (IRA); or
- amounts from a RRIF included on line 115 and transferred to an RRSP, another RRIF or an annuity.
