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kmd2
Level 1

Pension credit when spouse is under 65.

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?

3 Comments 3
janisbossenberry
Level 7

Pension credit when spouse is under 65.

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.

kmd2
Level 1

Pension credit when spouse is under 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.  

Ladytax
Level 3

Pension credit when spouse is under 65.

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.