OAS Application Deadline: A Critical February Date Tax Professionals Shouldn’t Miss

Geoff Currier

As you enter the busiest time of year as tax professionals, there are several deadlines apart from April 30 that you will want to discuss with your clients. Among them is the earliest application date for Old Age Security (OAS).

February 2, 2026 is the earliest date on which your clients can apply to receive OAS eleven months later. Granted, January 1, 2027 may seem a long way off, but this is a matter of long-term planning for clients who intend to collect OAS next year.

For clients who plan to start collecting OAS in January 2027, you should bring the February 2 date to their attention. Many may not be aware that they can begin the process eleven months prior to receiving benefits.

The Process

In most cases, clients will receive a letter from Service Canada around their 64th birthday informing them that they are enrolled automatically. In this case, there is no need to apply. However, they may still wish to delay collecting until they are older.

If your clients do not yet have a Service Canada Account, now is the time to advise them to get one. This can be done online at canada.ca/msca, or in person at a Service Canada location.

Let clients know that they will need to take action if:

• The letter contains incorrect information
• The letter requests a reply
• They want to change their start date
• They have turned 65 but have not yet started their pension or delayed their start date

Clients living outside of Canada will need to apply by paper to Service Canada.

You can assist clients who are close to the age of eligibility by asking about their plans. If 2027 is the year they intend to start collecting OAS, you can inform them that they can begin the process sometime after February 2 — eleven months prior to the date they will begin collecting.

They will need to access form SC ISP-355OE. This is the same form used if applying for the Guaranteed Income Supplement (GIS). Clients should be advised that GIS is an income-tested benefit.

OAS and Tax Planning

This is the time to begin discussions about the tax implications of OAS. Your annual conversation with clients should include their current income and future projections.

Will collecting OAS push them into a higher tax bracket? Would delaying OAS be wiser from a tax standpoint, or do their circumstances require that they collect as soon as possible? This is an important conversation to have.

Some clients may not realize that OAS is subject to partial clawback once income reaches $93,454 for the 2025 tax year. Unlike CPP, OAS is subject to clawback, and understanding this may influence their decision about when to begin collecting.

Higher-income earners should be informed that once income reaches $152,062 (ages 65–74) or $157,923 (age 75+), 100% of OAS will be clawed back.

The repayment is based on the difference between the client’s income and the applicable threshold. Clients must repay 15% of that excess amount. Those in a repayment situation will receive an Old Age Security Return of Income form in January, which must be completed. They will also receive an NR4 Old Age Security information slip to use when completing the return.

The Bottom Line

The decision of when to begin collecting OAS is an individual one. While most Canadians opt to collect at age 65, it may be in a client’s best interest to delay until age 70.

You can be of enormous help to your clients when discussing their options. While crunching the numbers is important, remember that you are in the people business. What is routine for you is a once-in-a-lifetime decision for them. Your patience and guidance will pay off as you retain clients — and their families — for the long term.

Additional Educational Resources: Take KB’s T1 Tax Preparation School! Start strong with Rookie Tax Training on February 4 and build a solid foundation in personal tax preparation, ideal for those looking to become a professional income tax preparer or train new staff.

Ready to go further? Complete the full February CE Mini-Summit series to earn your Income Tax Preparer Certificate, including these events in KB’s T1 Tax Preparation School – also featuring Canada’s Income Tax Fundamentals Course (20-Hour Online Course):

• February 11 – Calculating Capital Gains
• February 18 – Families & Their Real Estate
• February 26 – Focus on Small Business