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When Pension Income is Split With a Spouse, Will the Spouse Get a Pension Income Tax Credit?
Up to 50% of pension income that is eligible for the pension income tax credit may be transferred to a spouse or common-law partner. See our article on pension splitting. The splitting of pension income may allow the spouse to claim a pension income tax credit. An officer of the Department of Finance advised that:
 | where pension income which does not fit the description of qualified pension income has been transferred to a spouse, the spouse will not be eligible for the pension income tax credit unless they are 65 or older, and |
| where pension income which fits the description of qualified pension income has been transferred to a spouse, the spouse will be eligible at any age for the pension income tax credit based on the transferred amount. |
The intent is that if the pension income would have been eligible for the pension income tax credit if received directly by the spouse, it will also be eligible when received as a transfer of pension income.
| If a taxpayer is under 65 and receiving pension income eligible for the pension tax credit (qualified pension income), the spouse will also be eligible for the pension tax credit, regardless of age. |
| If a taxpayer is 65 or older and receiving pension income that would not be eligible for the pension credit if received by a person under 65, a spouse under 65 will not be eligible for the pension credit based on the transferred pension income. |
| If a taxpayer is 65 or older and receiving pension income that would be eligible for the pension credit if received by a person under 65, a spouse will be eligible for the pension credit, regardless of age. When this situation applies, see Completing Step 4 of the T1032. |
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Revised: September 20, 2024