Pension income amount
You might be able to claim up to $2,000 of your federal pension income amount if you reported eligible pension, superannuation, or annuity payments on your return. With this non-refundable tax credit, you can reduce the amount of taxes you owe.
Keep in mind, not all types of pension income qualify for the pension income amount. For example, benefits such as Old Age Security (OAS) or Canada Pension Plan (CPP) aren’t eligible for this tax credit. Additionally, a part of what qualifies is based on your age:
- If you’re 65 years of age or older, pension income that’s eligible for this tax credit include:
- Income from a deferred pension savings plan (DPSP) (T4A slip box 24)
- Regular annuities and income averaging annuity contracts (IAAC) (T4A slip box 24)
- Registered Pension Plan (RPP) lifetime retirement benefits (T4A slip box 16 and/or T3 slip box 31)
- Income from a Registered Retirement Income Fund (RRIF) (T4RIF box 16, 22, and 20)
- Income from a Registered Retirement Savings Plan (RRSP) (T4RSP box 16)
- Elected split pension income (T1032 box G)
- Employee Benefit Plan (EBP) benefits (T4A box 16)
- Variable pension benefits (T4A box 28, box 133)
- Certain foreign pensions (incl. US Social Security) unless it’s tax-free in Canada
- If you’re under the age of 65, the only income that qualifies for this amount are your RPP lifetime retirement benefits, elected split pension income, foreign pensions that aren’t tax-free, and pension plan and annuities you received as a result of the death of your spouse or common-law partner.
Note: If you’re eligible to claim the federal pension income amount, you can also claim the corresponding provincial amount. This amount varies based on the province or territory you live in:
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Québec
- Saskatchewan
- Yukon
Can I transfer my pension income amount?
Yes, you can transfer all or part of your pension income amount that you don’t need to reduce your own tax payable to zero to your spouse or common-law partner.
Where can I claim this?
H&R Block’s 2024 tax software will automatically claim both your federal and provincial pension income amount on your return for you based on the information you enter from your slips.
If you and your spouse are preparing your returns together (coupled return) and you don’t need the full amount to reduce your tax payable, H&R Block will automatically transfer and apply any unused portion of the amount to your spouse’s return.
If, however, you’re not preparing your returns together, your spouse will need to enter amounts (specifically the pension income amount on line 5836) from your return on the Amounts from {Spouse}’s 2024 return page under Required on the Credits & deductions tab. H&R Block's tax software will then apply the unused portion of the amount to your spouse’s return.
