TaxTips.ca - Save tax by sharing your CPP retirement pension with a spouse

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Sharing CPP Pension

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Seniors -> Sharing CPP pension with a spouse

You might save tax by sharing your CPP retirement pension with your spouse.

If you and your spouse or common-law partner are:

	both at least 60 years old, and
	one or both of you are receiving a CPP retirement pension, and
	were living together during the time one or both of you were contributing to CPP

you can apply to receive equal shares of the CPP retirement pensions that you both earned during the years you were living together. See Sharing your retirement pension on the Service Canada website.

This could be beneficial if one spouse is in a higher tax bracket, but clawback of OAS, spousal tax credit, and senior's tax credits must be considered. See the tables of non-refundable personal tax credits for levels at which the tax credits are reduced or eliminated.

Other pension income may also be split with a spouse beginning in 2007. See the article on pension income splitting on the Personal Tax page.

Tax Tip: You may save tax by splitting CPP retirement pension with a lower-income spouse.

Revised: September 06, 2009

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