In Canada, the elected split pension amount allows eligible taxpayers to split their eligible pension income with their spouse or common-law partner to potentially reduce the overall tax liability. Here's how it works and what kind of income is eligible: 

Eligible Pension Income

 1. Age Factor: The type of pension income that can be split depends on the age of the pension receiver.

• Under 65 Years: For those under 65, eligible pension income typically includes:

• Life annuity payments from a superannuation or pension fund.

• Certain payments received as a result of the death of a spouse or common-law partner.

•   65 Years and Older: For those 65 and older, the range of eligible pension income expands to include:

• RRIF (Registered Retirement Income Fund) withdrawals.

• Annuity payments from an RRSP (Registered Retirement Savings Plan).

• Other payments that qualify as pension income under the Income Tax Act.

 2. Non-Eligible Pension Income: Government benefits such as Old Age Security (OAS) or Canada Pension Plan (CPP) payments are not eligible for pension income splitting.

How to Claim Pension Income Splitting in Ontario

1. Joint Election: Both you and your spouse or common-law partner must agree to the pension split. This is done by jointly electing to split the pension income on your tax returns.

2. Form T1032: Both parties must complete and file Form T1032, Joint Election to Split Pension Income, with their tax returns. This form indicates the amount of pension income to be split.

3. Filing Tax Returns: Include the elected split pension amount on your tax returns. The person receiving the split income will report the amount on Line 11600 of their tax return, while the person transferring the income will deduct the same amount on Line 21000 of their tax return.

4. Professional Advice: It's always a good idea to seek advice from a tax professional, especially if your tax situation is complex or if you're unsure about the eligibility of your pension income for splitting.

5. Deadline: Remember to file your tax returns by the deadline (usually April 30th) to avoid any penalties.

 Pension income splitting can be a valuable tool for reducing the overall tax burden for couples, but it's important to ensure that you comply with all rules and eligibility criteria set by the Canada Revenue Agency (CRA).