If your income goes over a certain threshold, you could lose some or even all of your OAS benefits. It’s frustrating because it feels like you’re being penalized for doing well.
I’m 58 and my wife 54 we are both retired with over $1 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly.
Love your video! one thing that should be highlighted is the actual affect on marginal tax rates that OAS clawback make at the 15% it adds. Example alberta 54K to 106k Income marginal rate is 30.5 and the 106K to 142K is 36%. You would be much better to increase your income in non OAS years to over 150K (RRSP withdrawl). Great education however, wish some of my friends had done some research before before it was to late
The threshold targets "net income before adjustments", line 23400 on the T1, not gross or total income. For a lot of people this will equal total income, but it's not accurate to say gross income.
If a senior already retired has a small amount in a TFSA and wins a substantial amount of lottery money then, I take it that it would be wise to max out the allowable TFSA. $95,000. in 2024.
Wow!! Useful information. One question though, the video was all about trying to keep taxable income ideally below $90k and at the end you talked about different tax rates for capital gains and dividends. How does this map to taxable income? Would the taxable income = emp income + rrif withdrawals + OAS payments + CPP payments + .5 cap gains + .3 dividends?
11:25 my question is a simple one if one takes out their OAS at 65 and you're in the six figure bracket but low can you split that and have it all go to your spouse who is at a lower income bracket? also, is the clawback on iOS on net income or is it on gross income?
The OAS clawback is officially known as the OAS recovery tax, the clawback for any payment year (from July to June) is “normally” based on your net income as reported on your tax return for the previous calendar year. There is no income splitting of OAS.
It's getting really hard too live in Canada these days.carbin tax. Gas for car. Heat for your home. Grosrey. It doesn't seem too bother the mps. With The big pay check thay seem too receive. Every year. And the canadian people get poorer. Thanks too the liberal party.
If your income goes over a certain threshold, you could lose some or even all of your OAS benefits. It’s frustrating because it feels like you’re being penalized for doing well.
I’m 58 and my wife 54 we are both retired with over $1 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly.
Thank you for a clear description of your various scenarios
Very useful info.
Is it gross income or net income ? It says net income on the government site. Thanks good video
Thank you, probably it was worthwhile to mention eligible dividend gross up , which might bring total taxable income above OAS clawback level.
Excellent presentation. 😮
Love your video! one thing that should be highlighted is the actual affect on marginal tax rates that OAS clawback make at the 15% it adds. Example alberta 54K to 106k Income marginal rate is 30.5 and the 106K to 142K is 36%. You would be much better to increase your income in non OAS years to over 150K (RRSP withdrawl). Great education however, wish some of my friends had done some research before before it was to late
Thank you! All good reminders!
The threshold targets "net income before adjustments", line 23400 on the T1, not gross or total income. For a lot of people this will equal total income, but it's not accurate to say gross income.
If a senior already retired has a small amount in a TFSA and wins a substantial amount of lottery money then, I take it that it would be wise to max out the allowable TFSA. $95,000. in 2024.
Absolutely 👍
Wow!! Useful information. One question though, the video was all about trying to keep taxable income ideally below $90k and at the end you talked about different tax rates for capital gains and dividends. How does this map to taxable income? Would the taxable income = emp income + rrif withdrawals + OAS payments + CPP payments + .5 cap gains + .3 dividends?
11:25 my question is a simple one if one takes out their OAS at 65 and you're in the six figure bracket but low can you split that and have it all go to your spouse who is at a lower income bracket? also, is the clawback on iOS on net income or is it on gross income?
The OAS clawback is officially known as the OAS recovery tax, the clawback for any payment year (from July to June) is “normally” based on your net income as reported on your tax return for the previous calendar year. There is no income splitting of OAS.
It's getting really hard too live in Canada these days.carbin tax. Gas for car. Heat for your home.
Grosrey. It doesn't seem too bother the mps. With
The big pay check thay seem too receive. Every year. And the canadian people get poorer. Thanks too the liberal party.