Hello, this is Simon from Pension-income-splitting.com.

Did you know that as a retiree you can save thousands of dollars through pension income splitting? We can help you to do this, which will lower your taxes payable, increase your tax credits as well as other government benefits.

Retirement income splitting allows you and your spouse (including common law) to lower your total taxes throughout retirement. Any Canadian resident with eligible pension income can allocate up to 50% of that pension income to their spouse.

For example, retirees can split up to 50% of the eligible benefits received from an employer pension with your spouse, regardless of age. In doing so, each of you can also then use the annual tax credit on up to $2000 eligible pension income.

Each of you will need to make an election in your tax return specifying what portion of your income is to be deducted from the person who actually received the income. The greater the difference between your incomes and marginal tax rates, the more significant your tax savings will be. We can help you to determine the election amount that maximizes your tax savings.

Also, by leveling your retirement income between you and your spouse, pension splitting can increase your use of age credits, providing that you are 65 years old. While there is a clawback that can reduce the base for the age credit, couples who split incomes may also avoid or reduce the Old Age Security (OAS) claw back.

If you are a retiree or a senior, please contact us at 416-626-2727 or by email at [email protected]. We look forward to helping minimize your taxes.

Gary Booth, Chartered Accountants
555 Burnhamthorpe Road, Suite 406
Toronto, ON
M9C 2Y3
T: 416.626.2727
Fax: 416.621.7136
E-mail us: [email protected]
http://www.pension-income-splitting.com