Understanding the OAS Clawback

Seniors don’t take kindly to the clawback of their OAS (Old Age Security) especially in these inflationary times, but this can happen, especially if there was an unusual receipt of income during the past calendar year.  Here’s what you need to know to explain the consequences for 2025 and 2026:

CRA has just announced increases in the CPP and EI premiums – statutory deductions – that will be payable by employers and employees in 2023.  In the case of EI (Employment Insurance), the rates had been frozen for two years; but now, with both plans becoming more expensive, these taxes on labor will shrink both take home pay for workers and cash flow for employers in an inflationary winter.

Knowledge Bureau Report asked pros across the country whether the First Home Savings Account (FHSA) or the Registered Retirement Savings Plan (RRSP) is the better savings vehicle for home buyers.  The vote was close. 

Annual dinner and announcement of 2022 Designates and Graduates with Dr. Dean Smith on Sunday Oct 16 at DAC Acuity 2022, plus a session on Monday led by Dr. Smith covering tax planning and compliance with a focus on ex-pats.

Check out your official transcripts in the Graduate Lounge.  Why?  Find out if you qualify for new Specialized Credentials, re-certification options and most important - Early Bird Tuition Reductions for the fall term October to December 15. 

For taxpayers who filed a 2021 tax return in Alberta, Saskatchewan, Manitoba or Ontario a second Climate Action Incentive Payment (CAIP) will be in your bank account on October 14.  Those who did not file a tax return yet, should get on it, as the CRA is not paying interest if you are claiming these rebates late. 

Old Age Security (and the Guaranteed Income Supplement) are updated quarterly according to changes in the Consumer Price index. With inflation running at close to 7%, OAS, which was indexed by 2.8% in July, is expected to increase another 2.8% in October.