Tax Tip: Income splitting benefits

If you meet the qualifications, you can split your taxable income — including pension splitting,  and tax on split income  (TOSI) — with your spouse to help save money. This allows the spouse with a higher taxable income to reduce their tax payable by transferring some of their taxable income to the spouse in the lower tax bracket. This can reduce the couple’s overall taxes owed.

Calculations involved with income splitting can be difficult. Using tax software such as TurboTax Standard, Premier, or Self-Employed while completing your income tax return will ensure these calculations are done quickly and effectively. The software will prompt you for information from applicable income slips and calculate everything accurately for you.

For more  detailed information please review our articles below:

• Understanding Pension Income Splitting for Seniors
• Pension Income Splitting – How it works – Advantages and conditions