And while CPP pensions are not eligible for
pension income splitting on your tax return, you can split your CPP in another way when you apply.
You can balance tax payable as a couple each year retroactively with
pension income splitting on your tax filing.
Since CPP is not eligible for retroactive
pension income splitting on your tax return like other forms of eligible pension income, pension sharing is something to consider proactively when applying for your pension.
Not exact matches
In addition, other payroll taxes
on employees will end (e.g. EI premiums), and certain tax measures targeted
on the elderly will come into play (e.g. the aged exemption, the
pension income deduction, the non taxation of GIS,
pension income splitting, and so
on).
218 comments
on my story
on the NDP
pension platform, and the
income splitting stuff hit all of the media.
This includes the
splitting of
pension income for seniors, (to make amends for breaking its promise
on the taxation of family trusts); special tax preferences to support participation of youth in sports activities, arts and cultural activities; tax breaks for people who take public transit; and, tax breaks to help volunteer firemen.
Mr. Macdonald singled out five federal tax measures as being the most inequitable to lower
income people based
on 2011 data — the dividend tax credit, partial inclusion of capital gains, the foreign tax credit, employee stock options and
pension income splitting.
The majority want to see legislators convicted of felonies stripped of their public
pensions, but are
split on whether outside
income should be limited.
On the taxable
income alone, with an even
split of eligible
pension income, they would each have about $ 86,000 of tax exposure.
Think about it: those already retired will enjoy not only the previously enacted
pension -
splitting provision, but if they're living
on RRIF
income they now have less reason to fear outliving their money.
The extent to which
pension income splitting will be beneficial will depend
on the marginal tax bracket of you and your spouse or common - law partner, as well as the amount of qualifying
income that can be
split.
If you had only elected to
split 30 % of your
pension income, $ 3,000 of
income tax withheld would be reported
on your spouse's return.
Another result of
pension splitting is that the
income tax withheld from your
pension income will be reported
on your spouse or common - law partner's return, proportional to the amount of
income being
split.
I assume that you are
splitting your
pension income on your tax returns, so that 50 % of your
pension is taxable to your wife at her lower tax rate.
Conservative: The Tory record
on seniors includes an increase to the Guaranteed
Income Supplement and the introduction of pension income - spli
Income Supplement and the introduction of
pension income - spli
income -
splitting.
Her
income will likely rise in the future because you will begin your second
pension and half of that can be
split with her
on your tax filings, plus she will have her CPP, OAS and RRIF withdrawals as well.
Instead, it has been repeatedly suggested that good advisors earn their keep by offering helpful reminders of deadlines, working
on tax optimization,
income splitting,
pension integration and other applied financial planning concepts and the big catch - all phrase: behavioural coaching.
The Canadian Centre for Policy Alternatives says it looked at the potential impact of
income splitting in three scenarios:
on pensions, for those families with children under 18 and for all families across the board.
Pension income splitting and the new Family Tax Cut are other easy measures that can be used to
split income and reduce tax retroactively
on your tax returns.
Pension income splitting can be done
on your annual tax filing with your spouse to equalize
income and reduce family tax.
First off, assuming your husband's
pension is a defined benefit
pension plan, he's eligible to
split up to 50 % of his
pension income with you
on his tax return.
Over the years, I have published a number of articles
on income splitting and
pension income splitting that have generated quite a bit of traffic.
Pension splitting is based
on the fact that Canada's graduated
income tax system imposes far higher rates of tax
on big earners than
on modest or non-existent earners.
Note too that any
income tax withheld from your
pension income will be reported
on your spouse's return, proportional to the amount of
income being
split.
If you
split only 30 % of the
pension income, just $ 3,000 of tax withheld would be reported
on your spouse's return.