How to calculate the income tax deducted at source that you have to enter on line 437 of your return
The income tax that is withheld at source from the eligible pension income will have to be allocated from the pensioner to the spouse or common-law partner (the pension transferee) in the same proportion as the pension income is allocated. For example, if you (the pensioner) allocate 50% of your eligible pension income to your spouse or common-law partner (the pension transferee), 50% of the income tax withheld at source on that pension income must also be allocated to your spouse or common-law partner.
If you (the pensioner) and your spouse or common-law partner (the pension transferee) have jointly elected to split your eligible pension income, follow the instructions at Step 5 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 437 of your and your spouse's or common-law partner's returns.
If your (the pensioner) information slip(s) includes income tax deducted for both eligible and non-eligible pension income on the same slip, calculate the proportionate amount of tax deducted to be included on line O of Form T1032 as follows for each slip:
The CRA cannot approve a reduction of tax withheld at source based on an election to split pension income.
Forms and publications
- General Income Tax and Benefit Package - Guide, Return, and Schedules
- Form T1032, Joint Election to Split Pension Income
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