Pension credit when spouse is under 65.

Forum|Forum|5 years ago
April 9, 2021
1 reply
3 views

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?

ProFile (Canada)

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J

janisbossenberry

Level 7

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.

K

kmd2Author

Level 2

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.

L

Ladytax

Level 4

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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