The Canada Revenue Agency today issued a reminder on the federal government’s new pension income splitting tax measure.

New tax rules allow eligible taxpayers to allocate up to half of their eligible pension income (income that qualifies for the pension income tax credit) to their lower-earning spouse or common-law partner when filing 2007 income tax returns.

To make this election, the tax filer and the spouse or common-law partner must each complete Form T1032, Joint election to split pension income.