chucky_ott Posted February 24 Report Share Posted February 24 Hi, I'm doing pension income splitting this year (and last). On the Combined Tax Return Summary, the Total Income for me and my spouse is higher than it should be. Looking closer at the numbers, Ufile does not subtract the amount reported in line 11600 of my wife's summary from my income on line 11500. As an example, if my pension income is $20000, and I'm splitting it by 50%, the total income on line 15000 ends up being $30000 ($20k for me and $10k for my spouse) instead of $20000 ($10k each) The Net income calculations in the section just below are ok and deduct the split amount from my income. So it looks like the final calculations are ok. But I'm just wondering why the total income displayed would be incorrect. Is this a bug in Ufile? Or how it's designed to be ? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 25 Report Share Posted February 25 Hello chucky_ott, The program automatically processes the tax you already paid on the eligible pension income in proportion to the elected split-pension amount. This result is on : Spouse Return : Elected split-pension amount [11600 ] Family Head Return : Deduction for elected split-pension amount [2100] The calculation can also be viewed in Step 5 of the federal T1032 form, available under the "Tax Return" tab. To view the optimization and savings for the pension split pleas refer to the report “Report on split-pension income”. The split is not always optimal at 50%, and this report will show you with and without the allocation. Report on split-pension income – 2023 Checklist - Medical expenses Report on split-pension income < - - - HERE Report - tax savings reconciliation Worksheet (Federal) p1 Quote Link to comment Share on other sites More sharing options...
chucky_ott Posted February 25 Author Report Share Posted February 25 This is what I mean: My income: $100000 salary + $15000 pension Wife's income: $80000 salary Real Total income: $195000 But Ufile reports the total income to be $198691. It includes the split amount for my wife's income but doesn't subtract it from my income in this calculation I know that the final tax calculations are accurate as you have shown. I was just wondering why the number on line 15000 is inflated. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 25 Report Share Posted February 25 Hello chucky_ott Please contact UFile Support so we may review the file confidentially. Please note this is a public forum, please do not post personal and confidential information here. Please open a request ticket and submit an anonymous file for review on-line at https://www.ufile.ca/contact/contact-us. Please include above notes. Quote Link to comment Share on other sites More sharing options...
chucky_ott Posted February 25 Author Report Share Posted February 25 Yes, contacting support was my initial plan but then I saw that there was a support forum. Understood and agree about the confidential information. The numbers I posted above are also fictitious, exactly for that reason. I might add the in the screenshot you posted above, it appears as if it is doing the same thing. I suspect that the total income of 113117.76 is 25265.26 higher than it really is since that amount was added to your spouse's income but not subtracted from your income. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 25 Report Share Posted February 25 Hello chucky_ott, Thanks for the update. Quote Link to comment Share on other sites More sharing options...
Walleye Posted March 5 Report Share Posted March 5 Hello Team Ufile, Curious, did Chucky's question get resolved? AKA: i) was it a calculation/programming issue within the software, or ii) was it simply a matter of understanding how the algorithm/software displays things to achieve the correct result? If i) has it now been corrected? I only ask the question as I'm currently looking to use this pension splitting option as noted below. By taking various results from the "Report on split-pension income" screen, I've pulled together a spreadsheet to show several of the pension splitting results. (These results as shown below don't divulge any specific confidential info.) When letting MaxBack do its job we see the results highlighted in line no. 12 below. In this instance Head gets a refund of $5,149.00 and Spouse pays $2,176.00. However, when using another example as highlighted in line 4 below, we see that both Head and Spouse will get a refund. However, with a net overall difference relative to Maxback of -$38.00. So, to avoid the hassle of a Spouse having to submit taxes, it would cost this family $38.00. AKA in this example, the Gov't's get a $38.00 bonus LOL. The question I have is. Is it normal seeing such fluctuations between examples 1 to 14 below? ie: splitting only $5k to Spouse vrs splitting $40.6k to Spouse? I'm just curious if this indicates an algorithm error or if this is simply how the Accounting/Tax rules workout? Cheers and thank you. 2023 Income Taxes - Pension Splitting examples Head to Spouse Head Refund Spouse Refund Total Refund Net vs No Pen Splitting 1 $0.00 $608.00 $1,903.00 $2,511.00 $0.00 2 $500.00 $647.00 $1,985.00 $2,632.00 $121.00 3 $1,000.00 $687.00 $2,066.00 $2,753.00 $242.00 4 $5,000.00 $1,003.00 $1,932.00 $2,935.00 $424.00 5 $5,500.00 $1,043.00 $1,888.00 $2,931.00 $420.00 6 $6,000.00 $1,082.00 $1,845.00 $2,927.00 $416.00 7 $10,000.00 $1,399.00 $1,499.00 $2,898.00 $387.00 8 $15,000.00 $1,794.00 $1,066.00 $2,860.00 $349.00 9 $20,000.00 $2,190.00 $633.00 $2,823.00 $312.00 10 $30,000.00 $4,227.00 -$1,334.00 $2,893.00 $382.00 11 $35,000.00 $4,660.00 -$1,729.00 $2,931.00 $420.00 12 $40,642.00 $5,149.00 -$2,176.00 $2,973.00 $462.00 13 $45,000.00 $5,286.00 -$2,520.00 $2,766.00 $255.00 14 $46,046.00 $5,319.00 -$2,603.00 $2,716.00 $205.00 Quote Link to comment Share on other sites More sharing options...
chucky_ott Posted March 5 Author Report Share Posted March 5 I contacted Support as suggested and they said this was how it's designed to work, based on CRA rules. I suspect that if I did the forms manually, I'd end up with the same result. It would be nice if UFile gave a better explanation or a big warning because regardless of how it's supposed to work, the amount in line 15000 is incorrect. If you look at it without considering the net amount 23600, you'd think you had a higher gross income than you actually did. Quote Link to comment Share on other sites More sharing options...
Mahen Posted April 9 Report Share Posted April 9 This is an accounting issue. I see the same problem with other tax software. Although this doesn't effect your taxes it may effect other benefits you may receive outside taxes. For example, for my mother in law (who is living with us with zero income) to receive subsidies for her mobility equipment from a government funded charity, the total household income has to be less than $60k. Because of this accounting issue, when my spouse split her pension with me, our total income together goes over $60k which makes her ineligible for the subsidy. Quote Link to comment Share on other sites More sharing options...
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