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Pension Income Split


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UFile Maxback contains some flaws that have been exposed in the past, and reported by some individuals, but apparently they have has not been fixed. It is supposed to iterate for maximum benefit (least combined tax for a couple) but something is busted internally. The issue may be related to the lower income spouse losing more in tax credits, such as age amount (for seniors) or medical deduction threshold, than the higher income spouse benefits in lower income tax paid.

I don't know where the bust is and UFile needs to work on it. My best suggestion is to run the results two ways: 1) let Maxback decide, and 2) shut pension income splitting off as you have done.  If the result is that 1) is better, run with it. If 2) is better, chances are there is an optimum somewhere in between 0% pension income splitting and up to 50% pension income splitting. What that means is DON'T let Maxback decide and run your own manual iterations at perhaps 10% increments between 0% and 50% to find a better optimum. Iterate as you wish to fine tune it to the nearest percentage point if you have nothing better than time and/or are motivated to find the last dollar.

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  • 2 months later...

Thanks AltaRed ... Using Let Maxback Decide in uFile Windows seems to be working now (latest 2020 version @ 2021/04/29); it provides an optimal transfer amount (similar to my manual amount iterations) ... I will continue to check in the future in case it faulters ...  Any word from uFile that this is confirmed?

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