You may be able to reduce your tax costs by splitting your CPP benefits with your spouse. If one spouse (or common-law partner) is in a higher tax bracket than the other and receives a higher CPP benefit, splitting the CPP may make sense. To do so, both of you must be at least 60 years of age, at least one of you must be receiving CPP and you must have lived together during at least some of the time that your CPP contribution were made. Essentially, your CPP benefits are added together and then divided in half and both spouses receive an equal amount. This can lower the taxable income of the high income earner and increase the income of the lower income spouse.

Please contact your accountant at Harvey, Lister & Webb Incorporated to discuss the possibilities.

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