OAS Clawback And Your Spouses’ Income

by Tax Guy - Burlington Accountant on January 29, 2010 Print This Post Print This Post

I receive e-mails from readers from across Canada and the world. Many of these questions form the basis of the articles and topics I write. This question came in a while ago about whether the spouses income is used to calculate the OAS clawback.

Question: When a married pensioner calculates his or her OAS clawback amount, does he or she have to take into account the income of their, or is the other spouse’s income not part of the clawback calculation?

The Simple Answer

A person is entitled to receive Old Ager Security (OAS) if they have met the basic residency requirements. When the individuals income exceeds the threshold, then a portion OAS must be repaid (clawed back). Currently OAS is reduced by $0.15 for every dollar above $66,335 and is fully eliminated at $107,692.

Therefore, the clawback is based on the income of the individual. If you split pension income with your spouse, the additional income will impact their OAS if the allocation places your spouse above $66,000.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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