Filing Your Return -> Pension income tax credit -> Eligible Pension Income and Qualified Pension Income
Income Tax Act s. 118(3), 118(7)
Eligible pension income includes qualified pension income (see below) and, for taxpayers who are 65 or older in the year, the following pension income:
See also our Pension Splitting article, which includes an additional 2 types of pension income as eligible pension income for purposes of pension splitting only.
For taxpayers who are less than 65 for the entire year:
The June 4, 2014 Quebec Budget announced that taxpayers under 65 would no longer be able to split pension income for provincial income tax purposes, as of January 1, 2014.
Foreign Pension Income
Foreign pensions which are reported on line 11500 of your tax return may qualify as pension income, except
Tax Tip: If you have pension or annuity income which is reported on line 11500 or 12900 of your tax return, it may qualify for the pension income tax credit and for pension splitting with your spouse.
Income Not Eligible for Pension Tax Credit
Income that does not qualify as pension income for the pension income tax credit:
Also see the Canada Revenue Agency (CRA) web page on Line 31400 (line 314 prior to 2019) Pension income amount, which includes a section where you can answer questions to determine if you are eligible to claim the pension income tax credit.
Back to Pension Income Tax Credit
Revised: January 30, 2021
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