Old Age Security (OAS) 2016
The maximum amount of monthly income for this benefit for the first quarter of 2016 is $570.52
The base level of income at which the OAS Clawback begins to occur is $73,682.
Complete Clawback at $119,398.
Your previous year’s income will not be considered during the first year that you start receiving OAS. If that first year’s net income exceeds the OAS threshold level, you will have to pay it back as part of your annual tax filing. The amount of the repayment will be deducted on line 235 of your tax return as a ‘social benefits repayment’ to reduce net income. The repayment will also be shown on line 422, which adds the amount to your total payable. ‘Total payable’ then includes income tax plus the applicable repayment of OAS.
In the following year, your OAS payments will be reduced by the same amount as the OAS repayment from the previous year, starting July 1st. This is the OAS Recovery Tax. If you know that your income that year will not exceed the OAS threshold, or will not exceed it by as much as the previous year, you can request that less or no recovery tax be deducted, by submitting form T1213(OAS) early in the calendar year.
If OAS recovery tax has been deducted during the year, when you receive your T4A (OAS) slip it will show the amount of the deduction in Box 22 – ‘Income Tax Deducted’ and will thereby be included in credits applied against tax owing.