How to calculate the income tax deducted at source that you have to enter on line 43700 of your return

Note: Line 43700 was line 437 before tax year 2019.

The income tax that is withheld at source from the eligible pension income will have to be allocated from the transferring spouse or common-law partner to the receiving spouse or common-law partner in the same proportion as the pension income is allocated.

For example, if the transferring spouse or common-law partner allocates 50% of their eligible pension income to the receiving spouse or common-law partner, 50% of the income tax withheld at source on that pension income must also be allocated to the receiving spouse or common-law partner.

If the transferring spouse or common-law partner and the receiving spouse or common-law partner have jointly elected to split the transferring spouse or common-law partner's eligible pension income, follow the instructions at Step 5 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 43700 of both spouse's or common-law partner's returns.

If the transferring spouse's or common-law partner's information slip(s) include(s) income tax deducted for both eligible and non-eligible pension income on the same slip, calculate the proportionate amount of tax deducted to be included on line O of Form T1032, as follows, for each slip:

Eligible amount of pension income
Total amount of pension income
(eligible and non-eligible)

Total income tax
withheld at source
Tax deducted related
only  to the  eligible pension income


The CRA cannot approve a reduction of tax withheld at source based on an election to split pension income.

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