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Joint election to split pension income

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. 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.)