Page 126 - A Canuck's Guide to Financial Literacy 2020
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Non-Residents
Non Resident seniors who receive OAS payments must submit an Old Age Security Return
of Income (OASRI) so that the CRA can determine if you have to pay a clawback and in
order to ensure that your OAS payments are not cut off.
o If you reside in a country that has a tax treaty with Canada, you may be
exempt from filing this form.
Clawback Rate
The clawback rate of 15% applies to the portion of net income, including OAS benefits, that
exceed the OAS clawback threshold for the year. The repayment is based on the difference
between net income and the threshold amount.
Example:
The threshold for 2018 is $75,910.
If your income in 2018 was $86,000, then your repayment would be 15% of the difference
between $86,000 and $75,910:
$86,000 - $75,910 = $10,090
$10,090 x 0.15 = $1,513.50
You would have to repay $1,513.50 for the July 2019 to June 2020 period. It is divided
monthly, $126.12.
Income Taxes
Canadian Residents
OAS pension are considered to be taxable income and must be declared on your income
taxes.
