Clawback & Grant Thresholds Flashcards
What is the age credit, when do you qualify, and when does it get clawed back?
The age tax credit is a non-refundable credit available to individuals 65 years of age or older.
Clawback starts at: $44,325
Complete Clawback:
$102,925
Clawback amount is 15%
If an individual dies before their birthday in the tax year in which they would have turned 65, no age amount tax credit can be claimed on their behalf
When does OAS start getting clawed back and at what rate?
The clawback applies if your net income exceeds $90,997. For every $1 of net income above $90,997, the maximum OAS pension is reduced by 15 cents.
The threshold where your entire benefit is clawed back is $148,065 for retirees aged 65 to 74 and $153,771 for people aged 75 and up.
What are the income thresholds for CESG grants?
Family income <$54K = $600 per beneficiary
Family income >$54K but <$107K
= $550 per beneficiary
> 107K = $500
What’s the threshold for the CLB?
Family income thresholds:
1-3 children: <$54K
4 children: <$61K
5 children: <$67.1K
What is the lifetime maximum of the CLB?
$20,000. It is retroactive (can receive benefits up until age 21) and no minimum contributions are required. However there is an income test to qualify.
What are the thresholds for the CWB?
Individuals: Clawbacks begin at ~$25K of income.
Benefit fully reduced to 0 at ~$35K of income.
Families:
Clawbacks begin at ~$28K of income.
Benefit fully reduced to 0 at ~$46K of income.
How much is the GST credit and what are the income thresholds?
- Single: up to $519
Thresholds = $54K - $72K
- Family: up to $680
Thresholds = $57K - $72K
You can also claim your child’s GST/HST credit. If you have applied for and receive the Canada Child Benefit (CCB) then you are likely already receiving their part of the GST/HST credit.
What are the income thresholds for the CCB and what is the maximum benefit?
Max benefit paid out when AFNI is <$35K.
For every child under 6 years of age: $619.75 per month ($7,437 per year) For every child 6-17 years of age: $522.91 per month ($6,275 per year).
The benefit is reduced at ~$75K of AFNI.
What are the RDSP thresholds for grants?
Amount of Canada disability savings grant when the beneficiary’s adjusted family net income is $106,717 or less:
on the first $500 contribution—$3 grant for every 1 dollar contributed, up to $1,500 a year
on the next $1,000 contribution—$2 grant for every 1 dollar contributed, up to $2,000 a year
Amount of Canada disability savings grant when the beneficiary’s adjusted family net income is more than $106,717:
on the first $1,000 contribution—$1 grant for every 1 dollar contributed, up to $1,000 a year
When do RDSP benefits get clawed back and at what rate?
Upon early withdrawal.
For partial RDSP withdrawals, the account holder repays $3 of any grant or bond received in the 10 years prior for every $1 withdrawn.
