Start with the eligible portion, not every retirement payment
This worksheet answers an allocation question, not which split saves the most tax. Confirm the income source against CRA guidance before entering it. Ordinary CPP, QPP, OAS and US IRA income do not qualify for this election. A Canadian RPP lifetime pension may qualify before 65; RRIF eligibility can depend on age or a spouse’s death. Use the pension income amount chart, not the account balance, as your starting point.
The example assumes the ordinary full-year case, both spouses meet residency conditions, and there was no disqualifying relationship breakdown. The receiving spouse’s age does not itself prevent the election, but can affect their pension income amount. Partial-year relationships, a death, RCA distributions and foreign treaty questions require the actual T1032 instructions rather than this simplified allocation. Uncheck confirmation to see that no election is applied.
Read the four results together
For CAD 40,000 of confirmed eligible income and CAD 6,000 of tax deducted on that income, a 25% election allocates CAD 10,000 of income and CAD 1,500 of withholding to the partner. The pensioner retains CAD 30,000 of income and CAD 4,500 of withholding. At 50%, both rows are split equally. The trace always preserves the original income and withholding totals.
Withholding is already-paid tax credit, not the final tax due. If one slip combines eligible and ineligible amounts, first apportion its tax to the eligible income; do not enter the whole slip’s tax against only the eligible portion. For example, CAD 20,000 eligible out of CAD 40,000 total income with CAD 6,000 tax corresponds to CAD 3,000 eligible withholding.
An allocation is not an account transfer
Changing this worksheet does not move cash, change your pension payments or file an election. Compare both complete tax returns before choosing a percentage. A lower income for one spouse is offset by higher income for the other. Age-related amounts, individual OAS recovery and provincial rules can make a simple equal split unattractive. The tool does not model those tax and benefit interactions.
Use the allocation trace to reconcile a proposed election with your filing software. Both partners need a consistent jointly signed T1032. Keep the source slips and the calculation of any mixed-slip withholding with your records. The pensioner and recipient may have different eligible amounts for line 31400, so do not automatically copy a pensioner’s credit to their partner.
Official sources and scope
Checked 6 October 2026. These are bounded Canadian worksheets, not a completed return or an agency decision.