Tax Checksbenefits
Will my OAS be clawed back next year?
Most people only notice after their monthly payments drop.
Is this you?
- I receive Old Age Security (OAS)
- My income increased due to RRSP/RRIF withdrawals or capital gains
- I assumed I'd just repay it at tax time if needed
"I'll just pay it back at tax time if I have to."
OAS clawbacks trigger a Recovery Tax that reduces your monthly OAS payments for the entire following year - not just a one-time repayment.
Why guessing is risky
- Recovery Tax is applied automatically after assessment
- Monthly OAS payments are reduced for the next year
- Many seniors only realize after cash flow drops
Safe to ignore if
- My income stayed well below the clawback threshold
- No large one-time income events occurred
Stop and check if
- RRSP or RRIF withdrawals occurred
- Capital gains were realized
- Rental or side income increased
Resolve the doubt
Calculate my OAS recovery risk (2 minutes)We'll tell you if this needs reporting and what to do next.
"Most people pinpoint one income source causing the reduction and adjust future withdrawals."