The Old Age Security (OAS) benefit paid to Canadian residents aged 65 and older is indexed quarterly to changes in the Consumer Price Index.
Your Old Age Security pension amount is determined by:
- your age (65 or older)
- how long you have lived in Canada after the age of 18
- your income
It is considered taxable income and is subject to a recovery tax if your individual net annual income is higher than the net world income threshold set for the year ($86,912 for 2023).
The federal government recently announced that, for the third quarter of 2024 (July to September 2024), such indexation will mean an increase of 0.7% in OAS benefit amounts. That change will mean that OAS recipients under the age of 75 can receive a maximum benefit of $718.33 and those aged 75 and older are eligible for a maximum benefit of $790.16.
In addition to the Old Age Security pension, there are 3 other benefits available under the Old Age Security program:
- Guaranteed income supplement (GIS)
- Allowance
- Allowance for the survivor
Payment amounts for the Guaranteed Income Supplement, the Allowance, and the Allowance for the Survivor are not considered taxable income.
For Guaranteed Income Supplement, Allowance, or Allowance for the Survivor payments, your benefit amount will be re-calculated each July based on your net income in the previous calendar year. Payments can increase, decrease or even stop according to changes in your annual net income.
If you would like help with dealing with the CRA or would like to know more about taxable benefits, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
