Jerry Mason lives with his spouse, Janice Sparks. Both Jerry and Janice are 66 years old and, during 2020, they each receive $7,400 in OAS payments. As the result of many years with his employer, Jerry receives $88,000 in pension income from the plan that was sponsored by that employer. Janice has no source of income other than the OAS payments she receives. Neither Jerry nor Janice have applied for CPP and they have no tax credits other than the basic personal credit, the age credit, and pension income tax credit. Jerry has asked you to indicate the savings in federal tax that would result from making optimum use of pension income splitting for the 2020 taxation year.

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The Answer of Jerry Mason lives with his spouse, Janice Sparks. Both Jerry and Janice are 66 years old and, during 2020, they each receive $7,400 in OAS payments. As the result of many years with his employer, Jerry receives $88,000 in pension income from the plan that was sponsored by that employer. Janice has no source of income other than the OAS payments she receives. Neither Jerry nor Janice have applied for CPP and they have no tax credits other than the basic personal credit, the age credit, and pension income tax credit. Jerry has asked you to indicate the savings in federal tax that would result from making optimum use of pension income splitting for the 2020 taxation year.

Jerry Mason Lives with His Spouse, Janice Sparks