OAS cost dates in 2024, and extra to learn about Previous Age Safety

For instance, for earnings yr 2023, the edge quantity is $86,912. In case your earnings in 2023 was $120,000, then your compensation can be 15% of $33,088 (the distinction between $120,000 and $86,912). That comes out to $4,963.20.

OAS clawbacks are paid off in 12 month-to-month funds, beginning in July of the next tax yr (on this case, 2024) and ending the following June (2025, on this instance). This July-through-June interval is named the “restoration tax interval.” Persevering with our instance: $4,963.20 divided by 12 is $413.60. That’s how a lot you’d repay every month from July 2024 to June 2025. (See the OAS restoration tax thresholds for earnings years 2022 and 2024.)

How can I keep away from OAS clawbacks?

With some planning, it could be attainable to scale back or keep away from OAS clawbacks. One technique is splitting pension earnings with a partner who has a decrease marginal tax charge. One other technique is to base withdrawals out of your registered retirement earnings fund (RRIF) on the youthful partner’s age—your minimal withdrawals could also be decrease. Remember that totally different sorts of funding earnings are taxed in a different way, too. (Be taught extra about how passive earnings is taxed.) Take into account chatting with a monetary advisor or tax planner about these and different methods. 

What’s the Assured Revenue Complement (GIS)?

The Assured Revenue Complement (GIS) is part of the OAS program that gives an extra, non-taxable month-to-month cost to Canadian residents who obtain the OAS and whose previous-year earnings is under a sure threshold. Like OAS, the GIS is listed to inflation.

The earnings threshold modifications yearly. For instance, from July to September in 2024, the edge is $21,768 for a single particular person. In case your 2023 earnings was lower than that, you could qualify for the GIS. 

For {couples}, the utmost earnings thresholds for mixed annual earnings in 2023 are:

• $28,752 in case your partner/common-law companion receives the complete OAS pension
• $52,176 in case your partner/common-law companion doesn’t obtain OAS
• $40,272 in case your partner/common-law companion receives the Allowance profit (a non-taxable cost for Canadians aged 60 to 64 whose companion is eligible for the GIS and your mixed earnings is under the edge for the Allowance)

In case you don’t obtain a letter from the federal government in regards to the GIS, you may submit an utility by way of a My Service Canada Account or by filling out a paper kind and submitting it to Service Canada. You possibly can apply for OAS and the GIS on the similar time. Be taught extra about making use of for the GIS.