OAS increases 10% for 75+
OAS 10% increase for 75+
If you are 75 years old or older as of June 2022, you will get an automatic 10% increase of your Old Age Security pension starting July 2022.
If you are turning 75 after June 30, 2022, you will receive the increase in the month following your 75th birthday.
OAS July 2022
The “regular” OAS payment for July 2022 will be 666.83, and the amount for those 75+ will be 733.51.
The July 2022 payment includes the quarterly increase for OAS: the monthly amount will increase from 648.67 that was paid April to June 2022 to 666.83 for July to September 2022. And the higher amount of 733.51 will be paid to those 75+.
Guaranteed Income Supplement
The increase in the OAS for those 75+ does not affect the calculation of your Guaranteed Income Supplement.
The GIS is recalculated every July based on the previous calendar years’ net income. If your 2021 net income (total income less deductions) changed compared to your 2020 net income, your GIS will change effective July 2022. The net income CRA used excludes the OAS income.
The OAS and GIS program has made some extra payments in the past 12 months.
Last August 2021, seniors that were 75+ as of June 2022, received an extra $500 one-time lump sum payment. It was taxable income and you should have received a separate tax slip for it to include in your 2021 taxes.
During April 2022, a one-time payment was made to working seniors who were eligible for the GIS, but also received CERB during 2020. Those who received CERB in 2020 because of reduced employment income due to COVID, had their GIS reduced effective July 2021. The one-time payment in April 2022, was intended to make up for the previous monthly reduction since July 2021.
This special payment will be non-taxable and non-reportable. The payment will not affect income support programs such as provincially subsidized housing.
Many seniors over the age of 65 years are still working (as employees or self-employed) to supplement their income. These seniors who continue to work, can earn up to $5,000 without any effect on their GIS. If you earn $5,000 to $15,000 the GIS is reduced, but not as much as regular income from interest or pension or registered funds. Once your employment income is more than $15,000 your GIS is reduced substantially.
Adjusting Your GIS
There are a few reasons your GIS can be adjusted.
First, if you and your spouse no longer live together due to medical reasons, normally one spouse or both spouses move to a personal care home, then you can request the GIS be based on each spouse’s respective income instead of combined income. One or both of you may see an increase in the GIS and it is backdated to the date you started living apart.
Second, if you are a surviving spouse and included the $2,500 CPP death benefit on your own personal tax return, you can request Service Canada remove the CPP death benefit from the calculation.
Third, if your income from pension or employment reduces substantially, you can request a review of your GIS.
If you need help give our office a call. It can take many forms and many months for Service Canada to get the GIS adjusted.
Climate Action Incentive Payment
The CAI payment will be 15% higher than a year ago and will be paid throughout the year instead of part of the tax refund calculation.
For an individual, last year it was $360. Starting July 2022, it will be $416 per year, paid in quarterly installments. The April 2022 payment will be combined with the July 2022 payment: $208 for an individual in Winnipeg and surrounding areas. 10% higher for those of us in the rural.
Those of you that receive GST credits will be familiar with receiving government benefits on a quarterly basis. The CAI will be paid quarterly much like the GST credit. And to the same bank account.
The additional CAI payment for a spouse is $208 and for each child under 18 is $104. For example, a family of four in Manitoba will receive $832 for the year: $416 July 2022, $208 October 2022, and $208 January 2023. Plus, those us living farther from Winnipeg, will receive an extra 10%. This rural family of four will receive $915 for the year.
We plan to start up our Death Café again this summer now that we can meet in person again. To be on our contact list or to find out more, call or email our office.
Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact Ste Anne Tax Service at 204.422.6631 or 36 Dawson Road in Ste Anne (near Co-op) or firstname.lastname@example.org