Calio Posted April 13 Report Share Posted April 13 My spouse makes significantly more money than I do. Is there an option in UFile that allows us to split his income so we can reduce our tax liability? Is income splitting even permitted in Ontario? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 13 Report Share Posted April 13 Hello Calio, You cannot simply split or optimize income such as employment income. For investment income the same applies , you cannot simply split or optimize income- capital gain / dividends or interest 50/50 with your spouse (or others). It is pre-defined as per the account set up with the financial institution. This is because of the Attribution Rules, tax rules which have been especially created to limit income splitting (shifting income from a family member with a higher income to a family member with a lower income to reduce the overall tax a family has to pay). https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it511r/archived-interspousal-certain-other-transfers-loans-property.html Note that you can split certain types of pension income. Pension Split The program automatically processes the tax you already paid on the eligible pension income in proportion to the elected split-pension amount Quote Link to comment Share on other sites More sharing options...
Calio Posted April 29 Author Report Share Posted April 29 Thank you. Your reply was very clear and helpful! I appreciate it. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 29 Report Share Posted April 29 Hello Calio, Glad to hear it, you are welcome. Quote Link to comment Share on other sites More sharing options...
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