CONTRIBUTIONS
No contributions are required to participate in the OAS.
BASIC BENEFITS
The OAS is available to Canadian residents who have attained the age of 65. Benefits are reduced for individuals with less than 40 years of residence after the age of18. If you live outside Canada but, were a resident for more than 20 years after turning age 18, you may also qualify for OAS.
If net world income exceeds the threshold amount ($74,788 for 2017), you have to repay part or your entire OAS pension. Part or your entire OAS pension is reduced as a monthly recovery tax. You must pay the recovery tax if:
Your annual net world income is more than $74,788 (for 2017, in Canadian dollars); and
You live in a country where the non-resident tax on Canadian pensions is 25 percent or more.
Recovery Tax Period Income Year Minimum Income Recovery Threshold Maximum Income Recovery Threshold
July 2020 – June 2021 2019 $77,580 $125,696
APPLICATION
You should apply approximately 6 months before you turn 65. If you apply after age 65, you will only receive up to 11 months of retroactive
Payments. Once you start receiving OAS, you need not apply again as long as you file your annual income tax return.
GIS (Guaranteed Income Supplement) is one of the “supplementary” benefits payable under the Old Age Security (OAS) Act. Other such supplementary benefits include the Allowance and the Allowance for a Survivor; they will be discussed in a future article.
GIS is a monthly non-taxable benefit that is paid to eligible pensioners, in addition to the basic monthly Old Age Security (OAS) amount.
WHO IS ELIGIBLE FOR THE GIS?
In order to be eligible for the GIS:
You must be receiving the basic OAS.
You must be resident in Canada.
Your income must be lower than the maximum allowed income levels.
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WHAT IS CONSIDERED AS INCOME FOR GIS PURPOSES?
For the most part, income for GIS purposes is the same as your net income reported on your Income Tax return (excluding OAS).
GIS.
HOW DO I APPLY FOR GIS?
When you first apply for OAS, a question on the application form asks if you also want to apply for GIS. If you answer “Yes,” you will be mailed a separate application for
GIS. If you were not eligible for GIS when you first applied for OAS but become eligible later, contact Service Canada to request an application for GIS.
Once you are receiving GIS, you renew your benefit automatically each year simply by completing your income tax return
For More Information Please Visit:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html