Income Splitting Infographic

This Income Splitting infographic illustrates the method of bringing a couple’s household tax bracket down by transferring a portion of the higher earning spouse’s income to the lower earning spouse to use as eventual retirement income.

“Income splitting can be an effective strategy if the income of one spouse is considerably more than the other.”

The rules for income splitting in Canada require that the the married couple (or common law partners) looking to split the income, lived together in Canada (with some exceptions) within the tax year for which they are splitting income. The Income Splitting infographic illustrates how not all income sources are eligible, how to elect to split income each year, along with other considerations regarding the strategy.

Spousal RRSPs

If one spouse’s retirement income will be significantly lower than the other’s, a spousal RRSP could potentially lower the amount of tax the couple will pay collectively, both now and in retirement.

TFSA Gifts

A higher income spouse can gift their eligible spouse/partner spouse cash to contribute to their TFSA. While there are no tax deductions for the contributions, the funds will grow tax-free while they are invested.

Spousal RRSPs

If one spouse’s retirement income will be significantly lower than the other’s, a spousal RRSP could potentially lower the amount of tax the couple will pay collectively, both now and in retirement.

Companion Calculators

This Income Splitting infographic works well with the tax planning and retirement planning calculators including:

  • Income Splitting
  • Tax Calculator
  • Retirement Calculator

Infographic Features

  • Communicate complex concepts with vibrant, sharable, easy-to-understand infographics
  • Personalized for individual Advisors
  • Current and timely for client communications
  • One of many infographics included in FreshPlan software

Calculate. Educate. Plan.

Communicate complex concepts from all areas of financial planning with current, visual infographics.

FreshPlan combines 75 calculators with powerful infographics and planners to provide advisors with a visual, easy-to-use, time saving planning and education tool and can be accessed anywhere, anytime using any device – phone, tablet, iPad, laptop or desktop.