Splitting Income for Tax Purposes

Thanks to a change in federal tax regulations that allows “income splitting” for tax purposes, HOOPP pensioners may enjoy some tax relief, effective as of the year 2007.

The change allows Canadian residents to allocate up to one-half of eligible pension income to their spouse or common-law partner.

This could be particularly beneficial for those couples where one partner has significantly more pension income than the other.

There will be no change to how HOOPP reports or pays your pension income.

The changes go into effect for the 2007 tax year. For more information about this change, please visit the Pension Income Splitting page at the Canada Revenue Agency’s website.