Pension Splitting Requires Royal Accent Before Implementation
The Age Credit increase and the mechanism that would allow splitting pension income for income tax purposes need to receive Royal Assent before being implemented. For taxation year 2006, the $1,000 increase would bring the Age Credit amount to $5,066, thus representing maximum savings of $152.50 per person 65 years of age and older.
Pension income splitting is not to be made available before 2007. Therefore, pensioners won’t see the effects of this mechanism before spring 2008, when they fill out their income tax return for year 2007.
Although step-by-step information is expected to be released in 2008 to help taxpayers file their 2007 tax report, a Senior’s Tax Saving Calculator as well as some basic information are already available at the Department of Finance Web site.
