Understanding OAS and GIS clawbacks | AdvisorToClient

Posted by Ravi Gulati | Posted in Financial Planning | Posted on 08-03-2015

OAS recovery tax

The OAS recovery tax can apply if you’re 65 and older and receive taxable annual income in excess of $71,592. For every dollar of income beyond that level, the 15% recovery tax reduces OAS benefits. The upper end for full clawback is $116,103…………

The Guaranteed Income Supplement (GIS) is administered alongside the OAS program, and is subject to recovery, but at a 50% rate. Full clawback of GIS (which is directed at alleviating poverty) occurs at a fairly low income level. For example, a single senior will receive no GIS if taxable income (not including OAS) is more than $17,087.99…………

 

via Understanding OAS and GIS clawbacks | AdvisorToClient.