Your OAS pension is a means-tested benefit, meaning that it will be reduced or clawed back if your net income exceeds the OAS income threshold.
Seniors must pay back all or a portion of their OAS (line 113 of the tax return) as well as any net federal supplements (line 146) if their annual income exceeds a certain amount. If 2017 net income before adjustments is greater than $74,789 ($73,756 for 2016) then you will have to repay 15% of the excess over this amount, to a maximum of the total amount of OAS received. The clawback threshold is indexed each year in the same manner as federal tax brackets and personal tax credits. The clawback is called the "OAS recovery tax".
Check out OAS Clawback for more information and tips to reduce or avoid the OAS clawback, with topics such as:
- Previously High Income Earners Applying for the OAS Pension
- OAS Clawback and Your Current Year Tax Return
- Capital Gains Can Increase Your OAS Clawback
- Canadian Dividends and the OAS Clawback