Reducing Your Taxes
You have a couple of options if you want to reduce the amount of taxes you pay each year.
First, you can increase the tax deducted from your Ontario Teachers' pension each month to help reduce the amount you owe at filing time. This is beneficial if you work after retirement and have to pay tax on multiple incomes.
Second, you can allocate up to one-half of your pension income to your spouse for tax purposes. This is called spousal income splitting and it's a viable alternative if you want to reduce your family's taxes. If eligible, you can allocate up to half of your pension to your married or common-law spouse when you complete your annual tax return.