Elijah, aged 62 and Dara, aged 68 are married. Elijah collects CPP of $7,200 and has a $35,000 withdrawal from his RRSP. If Elijah shares the maximum amount of pension income with Dara, what will his Net Income For Tax Purposes be?

Question

Quizplus · Accepted Answer

Elijah's Net Income For Tax Purposes includes his CPP of $7,200 and the RRSP withdrawal of $35,000, totaling $42,200. Sharing pension income with Dara does not reduce his Net Income For Tax Purposes; it only affects how the income is taxed by allocating a portion to Dara.

Elijah, Aged 62 and Dara, Aged 68 Are Married