Does pension splitting affect future GIS payments

A widow (as of 2018) just asked me if the pension splitting that I did between her and her late husband's tax return would affect her Guaranteed Income Supplement for the upcoming year. Moving $3,412 of pension from her husband to her did save a small amount in taxes of $262 on his final tax return so it seemed a logical thing to do.

Obviously, however, if doing that means that her potential GIS for the next year would drop by, say $500, it wouldn't have been a good move. I personally don't think this should affect her GIS entitlement since that extra $3,412 for 2018 is purely an artificial transfer for tax purposes. Does anyone have any insight on this concern?


1 person found this helpful

I think you are correct although I can't actually find it. Even if it does affect the calculation the widow is be able to contact Service Canada to request they calculate based on estimated current year income rather than past year's tax filing due to material change in circumstances...

Was this answer helpful? Yes No
Default user avatars original

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: