Tips for tax time
March 01, 2013
Now that you're retired, hopefully you're enjoying life at an easier pace. Tax time is seldom considered to be one of life's pleasantries, but with our three tips, hopefully we can help reduce the burden and increase the ease of filing your income tax.
Tip One: Splitting incomes
Do either you or your spouse have a higher retirement income than the other? Splitting your pension income may help reduce the amount of taxes owed by your household.
Under the rules, you can allocate up to one half of your retirement income to your spouse on your income tax return. Finding the right balance is dependent on your personal situation. Visit Canada Revenue Agency's website to see if you qualify and if you do, consult a tax professional to find the optimal split for you and your spouse.
Tip Two: Download your T4A, anytime, anywhere
Having a hard time remembering where you left your T4A? Log in to iAccess Web, our secure member website, visit the "Tax Slips" section under "My Pension", and download a duplicate copy.
Tip Three: Take it from the source
Do you end up owing money each time you file? If you have other sources of income, you may not be paying enough tax at source, which could result in a hefty tax bill in the spring.
You can increase the amount of money taken at source each month from your pension to reduce the likelihood that you'll owe money when you file. Log in to iAccess Web, visit the Pension Payments page in the "My Pension" section and click, "Change my income tax deduction."