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Joint election to split pension income
April 4, 2026
Taxpayers who receive any pension, superannuation
or
RRSP/RRIF (including life income fund) annuity
payments
that qualify for the pension income amount
are eligible to
split up to 50% of this income with
their spouse or
common-law partner.
Form T1032, “Joint Election to Split Pension
Income” must
be filed with the return.
www.cra-arc.gc.ca/E/pbg/tf/t1032/t1032-07e.pdf
Please note that any ineligible foreign pension
income
(like that deducted at Field 256) will not
qualify for
pension income splitting. If an
election is made to split
foreign pension income,
then any foreign tax withheld may
also be split on
the same basis on Form T2209, Federal
Foreign Tax
Credits.
Note: If the taxpayer elected to
split Canadian pension
income that had Canadian tax
withheld, you must follow the
instructions at Step
5 on Form T1032, Joint Election to
Split Pension
Income, to calculate the amount for Field
6805 and
the amount to enter at Field 437 of the
return.
That is, the percentage of pension income
that was split
with the spouse or common-law
partner must be used when
calculating the
percentage of tax to be included on the
spouse or
common-law partner’s return. (Field 6805 must
equal
Field 116 or 210 divided by Field 6802, multiplied
by
Field 6804.)
For more information
visit the CRA
website:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/menu-eng.html
--
Disclaimer:
Eileen Reppenhagen CGA does
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