Finance Minister Flaherty is still considering allowing income splitting for all (ie. not just those over the age of 65). It doesn’t sound like the benefits are that big. Well maybe one might consider them to be big; they are just smaller than I expected them to be:
The Canadian Taxpayers Federation calculates that a single-income family with a $100,000 earner would save $4,320 this year under a split-income scheme that would allow each spouse to declare $50,000.
By way of comparison, a family with one $75,000 earner and a $25,000 earner would save $1,000 if they split their declared income.
I’m glad that they have “go ahead with joint filing for pensioners and seniors with respect to pension income.” It means I don’t have to worry about spousal RRSPs at all. But would the government ever take away income-splitting for pensioners in the future? Maybe. Would the grandfather it to those with existing RRSPs? I don’t know. I mean the government can do anything if they want.
2 thoughts on “Income Splitting for All Still a Possibility”
Spousal accounts might still be a good idea. If things work out then you will hopefully retire before age 65 so depending on how much $$ u have it might benefit. On the other hand as long as there is enough money in the smaller account to be able to split until age 65 then that should be fine.
Yeah that’s what I was thinking…just withdraw from the smaller account if you need to.