Ok, that’s a tacky heading, I freely admit. ¬†But it’s for real. ¬†Read on.

Pensioners have been able to do what’s called Pension Splitting for the last two tax years. ¬†In a nutshell, pension splitting means that you can split your pension with your spouse. ¬†Suppose one spouse has a sizeable pension, and the other spouse has little or no income. ¬†By splitting half that pension with the low income spouse, you can achieve some serious tax savings. ¬†In the most extreme case (e.g. one spouse with a very large pension, the other spouse with zero income) the tax savings could be as much as $10,000. ¬†Per year.

The amazing thing is that there are some seniors who qualify for this, and don’t know about it. ¬†I’ve had several new clients this year who missed out on it last year, simply because they weren’t aware of it. ¬†I was able to adjust their taxes to get them back some very large refunds.

So if you think you or your relations may qualify, and aren’t claiming it, don’t delay. ¬†You can read more about this here:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/menu-eng.html

Filed under: Personal Tax by David Boese No Comments »