Allowance Flashcards
What is an allowance?
An additional source of income for qualifying low income seniors who are not yet receiving OAS but are married to a spouse or have a common law partner who is receiving both OAS and GIS
Who is eligible for an allowance?
- aged 60 - 64 inclusive
- spouse is entitled to receive or is receiving OAS and GIS
- Canadian citizen or resident
- lived in Canada for a minimum of 10 years after 18 years old
- may also qualify if has not lived in Canada for 10 years after 18 but their country has a reciprocal social security agreement with Canada
What is the maximum allowance benefit for April to June 2021?
It is the total of maximum OAS + maximum GIS (for couples)
-> $618.44 + $556.04 = $1.174.49
What type of income is excluded from base income for calculating allowance?
OAS pension and any benefits relation to OAS system (same as GIS).
When does the allowance stop?
At age 65. It is then replaced with OAS and GIS
Which benefit is taxable from all the benefits in the OAS benefit system?
OAS is the taxable benefit. Also note that the clawback is an indirect form of tax.
GIS, allowance and allowance for survivors are not taxable (tax-free) though they are included in income to determine if the person is a dependant of another tax payer.
How are the benefits within the OAS program adjusted for inflation?
OAS retirement pension, GIS, Allowance and Allowance for the Survivor are adjusted quarterly to reflect inflation increases.
Changes are made in January, April, July and October of each year.
When do the allowance for survivor benefits stop?
When the income exceeds the allowable maximum
The recipient leaves Canada for more than 6 months
The individual does not apply or does not meet the deadline to apply by April 30
The individual remarries or establishes a common law relationship of one year or more
Recipient dies
When do the benefits stop for the allowance?
When the couple’s combined base income for previous year is greater than the maximum income cutoff.
Recipient leaves Canada for more than 6 months
Individual does not apply or does not apply by April 30
Couple separated or cease to live as common law
Recipient dies
What is an allowance for survivor benefit?
Provides an allowance for low income individuals between ages 60-64 who were married to or had a common law partner of an OAS pension recipient who died
