If a retiree’s income exceeds this limit, they are subject to a clawback of 15% of the difference between their income and the threshold. This is also known as the oas recovery tax.
Oas clawback results in a reduction of oas benefits by 15 cents for every $1 above the threshold amount and is essentially an additional 15% tax. For 2024, the clawback threshold will increase from $81,761 in 2023 to $86,912, meaning that you will start to lose some of your oas benefits if your net income in 2022 is higher than this amount.
For Instance, If An Individual’s Income In 2022 Were $100,000, The Clawback Amount Would Be 15% Of The Difference Between.
For the year 2024, the income threshold set for triggering the oas clawback is $90,997.
This Means You Can Earn More Before Any Oas Benefits Are Recovered.
There are two ways that oas recovery may impact you, sam.
Images References :
For Instance, If An Individual’s Income In 2022 Were $100,000, The Clawback Amount Would Be 15% Of The Difference Between.
Oas is fully clawed back at $129,581 of income.
If You Know Your 2024 Income Will Be Substantially Lower, So That Your Clawback Will Be Less, Or Even Zero, You Can Complete Form T1213(Oas) To Request A Reduction Of The Oas Recovery Tax That Is Or Will Be Deducted.
Potential increase in section 80c limit to rs 2 lakh.