Federal, provincial and territorial benefits, credits and programs

Allocating pension income to a spouse or common-law partner reduces the transferring spouse's or common-law partner's net income and increases the receiving spouse's or common-law partner's net income. As a result, benefits and tax credits that are calculated using the total net income of both spouses or common-law partners (such as the GST/HST credit) will not change because of pension splitting.

However, pension splitting will affect any tax credits and benefits that are calculated using one taxpayer's net income, such as the age amount, the spouse or common-law partner amount, and the repayment of old age security benefits.

The allocation of pension income may also affect certain federal, provincial, or territorial programs.

Instalments

Many taxpayers, including pensioners, must pay tax by instalment. The CRA issues instalment reminders showing the amounts to be paid by each instalment due date.

Instalment payments can also be made based on one of the following:

• the individual's prior-year net tax owing and CPP payable
• the individual's estimated current-year net tax owing and CPP payable

For more information, see Paying your income tax by instalments.

Forms and publications

• Income Tax Package
• Guide RC4210, GST/HST Credit

Related topics

• GST/HST Credit