As you turn 65 glorious years , and you already have eligible pension income, you may want to convert a portion of your RRSP to a RRIF. This would allow you to benefit from pension income tax credit and pension splitting with your spouse.
Funds are not transferred using pension splitting – it is simply a method for reducing the taxable income of one spouse by allotting income, on the tax return, to the other spouse. The transfer must be agreed to by both spouses, by filing the Canada Revenue Agency (CRA)
There is a federal pension income tax credit on the first $2,000 of eligible pension income .Pension splitting will only create a pension income tax credit for a pension transferee (the one to whom the split-pension is transferred) who is under age 65 if the pensioner (pension transferor) has received qualified pension income, which is eligible for the pension income tax credit for a taxpayer of any age.
Seniors must remember to submit all documents to their tax professional. (See Tax Checklist)
Other considerations for Seniors are:
Old age security pension
CPP -Survivors benefits
CPP- Disability Benefits
Home Renovation and Home Accessibility Tax Credits
GST/HST credit
RRSPs / RRIFs / TFSAs