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Senior People (Old Age Security (OAS) (monthly benefit paid to eligible…
Senior People
Old Age Security (OAS)
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recipients may elect to defer receiving OAS Benefits for up to five years.
For every month the pension is deferred, they will receive an additional 0.6% per
month when they do start collecting, up to a maximum of 36% at age 70
taxpayers with incomes in excess of certain limits are
required to repay a portion of any EI or OAS benefits they receive
Each month, the federal government withholds 1/12 of the estimated OAS repayment
amount from OAS payments made to individuals who were subject to repayment in
the prior year
CPP Retirement Benefits
Early retirement monthly pension will also be permanently reduced by a certain percentage for each month that they started receiving the pension prior to age 65
However, their monthly pension will also be permanently reduced by a certain percentage for each month that they started receiving the pension prior to age 65
If a taxpayer continues to work after retiring and contributes to CPP, this will
generate a post-retirement benefit (PRB) which will be reported in Box 19.
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Pension Income Splitting
an election to have the elected pension income treated, for tax purposes,
as if it were received by the spouse or common-law partner
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the transferee may be able to claim the pension income amount on the
transferred amount. This is a benefit if the transferee does not already have
$2,000 or more of eligible pension income.
if the transferor is in a higher tax bracket than the transferee, the splitting of
pension income has the potential to reduce the family’s overall tax liability by
reducing the amount of income that is taxed at the higher rate.
reduce the amount of the transferor’s OAS repayment amount as it reduces the
transferor’s net income, and
increase the age amount for the transferor because it reduces the transferor’s net
income.
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