Seniors 65 and over in Québec: which credits apply and how does pension splitting work?
Short answer: at 65, couples can usually split up to 50% of eligible pension income on both returns: federally with Form T1032 and in Québec with Schedule Q. You also gain the federal age amount ($9,208 for 2026) and the Québec age amount ($3,986 for 2026), plus pension amounts on both sides. Splitting can also help keep income under the OAS clawback threshold ($95,323 for 2026 income).
Pension splitting: federal vs Québec
Federally, the spouse who receives the pension can allocate up to 50% of eligible pension income to the other. Both spouses sign Form T1032 and attach it to their returns. The split amount is deducted on line 21000 by one spouse and added on line 11600 by the other, and the tax withheld moves in the same proportion.
- Under 65 (federal). Generally only lifetime annuity payments from a registered pension plan qualify.
- 65 or older (federal). RRIF payments, RRSP annuities and most other annuity income also qualify.
- Never eligible. Old Age Security, and Canada or Québec Pension Plan payments.
In Québec, the rule is stricter: the spouse who transfers the income must be 65 or older at the end of the year, even for a pension from a former employer. The transfer is up to 50% of eligible retirement income, calculated on Schedule Q, with the matching Québec tax withheld. So a 62-year-old retiree with a company pension can split federally but not on the TP-1.
Federal credits at 65
- Age amount. $9,208 for 2026, reduced when your net income goes over $46,432.
- Pension income amount. Up to $2,000 of eligible pension income (RRIF or annuity income at 65, a company pension at any age). Splitting can let both spouses claim it.
Québec credits for seniors
- Age amount. $3,986 for 2026, if you were 65 or older on December 31.
- Amount for retirement income. Up to $3,541 for 2026. QPP, CPP and OAS don't count.
- Amount for a person living alone. $2,172 for 2026.
- Career extension credit. For workers 65 or older with enough work income, on Form TP-752.PC-V.
- Home-support services credit. A refundable credit for people 70 or older who pay for eligible help at home.
- Senior assistance tax credit. For people 70 or older with lower family incomes.
These three Québec amounts are added together on Schedule B and reduced when family income goes over $42,955 (2026).
The OAS clawback
If your 2026 net income goes over $95,323, you repay 15% of the excess as OAS recovery tax, taken from payments from July 2027 to June 2028. This is where splitting often pays off: moving pension income to the lower-income spouse can keep the higher-income spouse under the threshold.
An example
Robert, 67, receives a $60,000 company pension and OAS. His wife Lina, 66, has only her QPP and OAS. They elect to move $30,000 of Robert's pension to Lina on the T1032 and on Schedule Q. Lina can now claim the $2,000 pension income amount and the Québec retirement income amount, and more of their income is taxed in the lowest brackets. We run both versions, split and not split, before choosing the percentage. The best split federally isn't always the best one in Québec.
Want us to handle it?
Book a free 30-minute session at soleraaccounting.ca/rendez-vous or call 450 612-7223. We prepare both spouses' returns together and test the split on the T1 and the TP-1. Service in French, English and Arabic.
This article is general information, not personalized tax advice.
Frequently asked questions
Can I split my QPP or OAS with my spouse?
Not through pension income splitting. OAS, QPP and CPP payments are excluded from the T1032 and from Schedule Q.
Do we have to choose the same split for Québec and the CRA?
They are separate elections: Form T1032 federally and Schedule Q in Québec. In Québec, the transferring spouse must be 65 or older at year-end, so the Québec split may not be possible when the federal one is.
When is the OAS clawback calculated?
It is based on your net income for the year. For 2026 income, the threshold is $95,323 and the repayment is taken from OAS payments from July 2027 to June 2028.
Sources
- CRA – Pension income splitting
- CRA – Line 31400, Pension income amount
- CRA – Indexation adjustment for personal income tax and benefit amounts
- Service Canada – Old Age Security pension recovery tax
- Revenu Québec – Line 123, Retirement income transferred by your spouse
- Revenu Québec – Age amount, amount for a person living alone and amount for retirement income
- Revenu Québec – Tax credit for career extension
- Revenu Québec – Tax credit for home-support services for seniors
- Revenu Québec – Amount of the senior assistance tax credit
- Finances Québec – Indexation du régime d’imposition des particuliers 2026
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