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Profile seems to assign a pension credit on pension splitting to under-65 spouse when over-65 spouse is getting RRIF-only 'pension'. How do you turn this off?
You do not turn it off. It is a valid deduction - before my husband passed away, we always split at least $2,000 from him to me. He was 19 years older than me and received pension well before I was 65.
Hi thanks for your response. I believe what you are describing is the case when the income is a true pension benefit (e.g. defined benefit plan) and the credit would be available to both parties prior to age 65, but if the income is from a RRIF, it only qualifies for the pension credit when the annuitant is 65. And I believe the spouse does not qualify for the pension credit until he/she also turns 65. This is what I am looking to clarify. I have seen a return done by a national firm using the same info for these clients and the pension credit was NOT applied to the under-65 spouse. But if entering that info into Profile, it defaults to giving the spouse the credit based on RRIF income.
From CRA
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 2 in Step 4 of Form T1032 to determine the amount to enter on line 31400 of your spouse or common-law partner's return.
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