What is Old Age Security Clawback?
Old Age Security ("OAS") is a social insurance program that provides a basic level of pension income, on application, to anyone age 65 or over who meets residence requirements.
The amount of Old Age Security pension is part of taxable income. OAS is reduced for persons with high income through a recovery provision of the Income Tax Act.
For 2010, the tax recovery applies to persons whose net income exceeds $66,733. For each $1 of income above this limit, the amount of basic Old Age Security pension reduces by 15¢.
How Does it Work?
Repayment of "clawed-back" OAS pension is made through deductions at source. If net income is more than $66,733, one-twelfth of the total estimated repayment for the year will be deducted from your monthly OAS payments. The estimated repayment is based on your previous year's tax return.
Estimate Your OAS Clawback
Enter your estimated net income for next year to see how much of your Old Age Security Pension will be reduced.
Calculation results...
What is Net Income?
Net Income is Total Income reported on your tax return less certain deductions.
Total Income includes employment income, Old Age Security, Canada or Quebec Pension Plan benefits, pension income, dividends, taxable capital gains, rental income, RRSP income and other revenues.
Deductions include Registered Pension Plan contributions, RRSP contributions, union and professional dues, business losses, carrying charges, interest expenses and other items.
