How to Increase Your OAS Payments

If you were subject to the OAS clawback on your 2015 tax return, your OAS cheques starting July 2016 will each be reduced by 1/12th of that clawback amount. But there is a way to reduce the recovery tax and increase your monthly OAS cheque.

If your estimated income for 2016 will be less than your income for 2015, you can request that the recovery tax be reduced by filing Form T1213(OAS), Request to Reduce Old Age Security Recovery Tax at Source. Beginning the month after the form is accepted by CRA, your recovery tax will be based on your estimated income for the year.

If your estimated net income for 2016 will be less than $73,756, full OAS payments will be restored. The revised recovery tax will be in effect until June 2017. Beginning July 2017, your recovery tax will be based on the income reported on your 2016 return.

Additional educational resources include Knowledge Bureau Tax Efficient Retirement Income Calculator.

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