Wealthsimple Tax simplifies the process of splitting pension income. Follow these steps based on whether you have linked profiles or not:
For linked profiles:
- Add the Pension Splitting section to your tax profile
- Indicate that you want to split eligible pension income
- Optimize your profiles:
- Go to the Review & Optimize section
- Click the Review & Optimize button
- Fix any errors in both profiles
- Click Review & Optimize again
- Review the results:
- Wealthsimple Tax will automatically calculate the optimal split
- Check the suggested split pension amount
- You can modify the split amount if desired
For unlinked profiles:
- Add the Pension Splitting section to your tax profile
- Identify your role for the question "Are you the transferring or the receiving partner?":
- Select "Transferring partner" if you're the higher-income partner
- Select "Receiving partner" if you're the lower-income partner
- Complete all required fields in the section
Important notes:
- Optimal splitting can only be determined for linked profiles
- Ensure all pension income is correctly entered in your profiles
- The optimizer must run without errors to apply pension splitting
Remember:
- Pension splitting can significantly impact both partners' tax situations
- Review the split amounts carefully before submitting your returns
If you need assistance with pension splitting in Wealthsimple Tax, please contact Wealthsimple support. For questions about the tax implications of pension splitting, consider consulting with a tax expert.
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