Pension Splitting

Income splitting options for couples to reduce tax are fairly limited, but there are options.

For certain pension income, you can split up to half with your spouse or common law partner.  If they're in a lower tax bracket the benefit is obvious.

But what if they earn more than you?  I have a client retired on a small pension and his wife is still working in her own business.  He earns $60k and she earns$150K.  Strangely enough, by splitting$1,800 of his pension with her, they saved $140 because of the tax credit on the first $2k of pension income.

Hey, it's only $140,but its their $140.  Maybe they'll takeme to dinner.  Or maybe not.

If you're looking for an accountant who does more than count your winnings and file your taxes, that's me.

I'm Ted Maclean, and I do tax so you can relax!

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