Pension Income Splitting Optimizer

This feature is not available in TurboTax Basic. To add this feature, upgrade TurboTax.

This feature is not available in TurboTax Online Free. To add this feature, upgrade TurboTax.

Enter your pension income and elect to split it in the Income section of the interview. The optimizer will then automatically open in the Review section of the interview.

Enter your pension income and elect to split it.

Note:

The Pension Income Splitting Optimizer only works if you are creating a dual return.

Not all pension income is eligible for splitting; TurboTax automatically determines which amounts can be split with your spouse.

If you are married or living common-law, and one or both of you receive pension income, it might make tax sense to split pension income if you are in different tax brackets.

Use the Pension Income Splitting Optimizer to determine whether there is any tax advantage to splitting this income and which amount gives you the best bottom line.

  1. From the Tools menu, select Pension Income Splitting Optimizer.
  2. Select the taxpayer who is splitting his or her pension, and then click Continue.
  3. On the Pension Income Splitting Optimizer screen, click Optimize.

    The table shows the effect of choosing various amounts on your bottom line. Québec residents also have a table below the federal calculations showing the effect on provincial tax.

    TurboTax fills in the optimal amount at the bottom of the table. You can adjust this amount if you wish.

  4. Click Continue when you are happy with the amount.

    The amount in the box is transferred to Form T1032, Joint Election to Split Pension Income and to the appropriate lines of the T1 General (line 21000 of the pensioner's return and line 11600 of the spouse's return).

  5. Québec residents: Enter the provincial amount you wish to split with your spouse.
    Note: You can split a different amount provincially, as long as you do not exceed the maximum allowable amount.

If you decide to split pension income, review T1032 - Joint election to split pension income.

If you are mailing your 2023 return, include the printed and certified T1032 - you both need to sign and date the form.