Tax Tip #6 -pension income

Pension-Income splitting (6) What is split pension income? If you received “eligible” pension income last year. It might be worthwhile to split as much as half of your pension with your spouse or common law partner in order to lower your taxes. Canada Pension is paid out to Canadian citizens that are at least 65 years old. “eligible” money includes: 1. Income from a Registered Pension Plan (RPP); 2. Annuities from a Registered Retirement Savings Plan (RRSP); 3. Payments from a Registered Retirement Income Fund (RRIF), and 4. The taxable portion of annuities from a superannuation or pension fund or plan. For individuals under the age of 65, qualifying income comprises money from pension plans and superannuation plans, including foreign pensions.

Advertisements

One Response

  1. You mispelled “pension” in the title of this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: