How do you claim the pension income amount?

If the transferring spouse or common-law partner and the receiving spouse or common-law partner elected to split their eligible pension income, follow the instructions at Step 4 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 314 of both spouse's or common-law partner's Schedule 1.

The transferring spouse or common-law partner will be able to claim whichever amount is less:

  • $2,000; or
  • the amount of your eligible pension income, after excluding amounts allocated to the receiving spouse or common-law partner.

The receiving spouse or common-law partner will be able to claim whichever amount is less:

  • $2,000; or
  • the amount of his or her pension income that is eligible for the pension income amount (based on the calculation for line 314 on the federal worksheet), including the allocated pension income that is eligible for the pension income amount.

Notes

The pension that qualifies for the pension income amount for the transferring spouse or common-law partner does not necessarily qualify for the pension income amount for the receiving spouse or common-law partner because eligibility can depend on age.

Read the note in Step 4 of Form T1032 to determine the amount to enter on line 314 of your spouse or common-law partner's Schedule 1, if the following conditions apply:

  • the receiving spouse or common-law partner was under 65 years of age on December 31 of the year; and
  • the transferring spouse or common-law partner was 65 years of age or older and received any:
    • RRIF, RRSP, other annuity payments;
    • variable pension benefits paid from a money purchase provision of a registered pension plan;
    • payment out of a pooled registered pension plan (other than amounts received due to the death of his or her former spouse or common-law partner) that you want to allocate to the receiving spouse or common-law partner).

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