- Canadian Tax Resource Blog - http://blog.taxresource.ca -

Income Eligible for The Pension Income Tax Credit

You are a pensioner and have heard that you can split your pension income with your spouse.  Perhaps you know you file T1032 – Joint Election to Split Pension Income [1] and how to report the amounts on return.  But what is eligible pension income anyway?

Eligible Pension Income

If you are age 65 of older in the tax year, eligible pension income includes any or all of the following types of pension income:

If you are under the age of 65 in the tax year, your choices are very limited.  Income that qualifies for the pension tax credit includes the following:

Certain foreign pensions may also qualify for the pension tax credit and thus be split with your spouse.  These typically include foreign pension that is exempt under a tax treaty.

Source: Tax Tips [2]