When to watch out for OAS clawbacks

Mar 14 16:03 2018 Print This Article

Beware of the clawback!(Shutterstock)

Q: I have been trying to find out how much extra income a person can earn without having to report the income while drawing OAS and CPP.

I have tried looking this up online, but every site I have been to wants to charge me just to get the answer or does not answer my question and ends up talking about other things.

I just need to know the limit they are allowed to earn before they need to report it.

—Marcella

A: By default, Marcella, you should assume that most income sources are taxable and need to be reported on your tax return. There are a few exceptions, like GST/HST credits, Canada child benefits, lottery winnings, gifts, inheritances, post-secondary scholarships for full-time students, and Tax Free Savings Account (TFSA) withdrawals.

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Money Sense

MoneySense is a Canadian personal finance and lifestyle magazine published by Rogers Publishing Limited, a division of Rogers Communications.Written for Canadians who want to take financial control of their lives, MoneySense is Canada's best-selling investment and lifestyle magazine, helping readers make smart, informed decisions about how to get the most from their money. The magazine has received many awards, including multiple National Magazine Awards and CFA Society Toronto Awards.

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