OAS clawback

[Araneus]

turbo tax online does not give you a calculation for net income before adjustments.  Yet that is what the OAS clawback is based on.  How do you calculate that your find line 23400 which is the line on the 2023 tax form that is supposed to tell you what the net income before adjustments is.   turbo tax only gives you net income after adjustments

[TurboTaxSusan]

@Araneus When you get to the end of your TurboTax Online return you'll be able to preview your actual tax return, so you can look at all the line numbers on your T1.

[tbleaney]

How does CRA and TurboTax apply a clawback in the first partial year?  If I should get 60% of my OAS clawed back but I only started getting OAS in July, then I only got 50% of the years payments (6 of 12 months).   TurboTax appears to claw back the full amount received and not 60% of the payments.  Is this right??

[TurboTaxVeronique]

If your income exceeds the OAS clawback threshold level, the amount of the clawback will be deducted on line 23500 (line 235 prior to 2019) social benefits repayment.  This reduces your taxable income so that you are not taxed on the clawback amount being paid back. 

The clawback will also be shown on line 42200 (line 422 prior to 2019) social benefits repayment, which adds the amount to your total payable.

We suggest you to contact CRA for more details about the clawback, as it's a specific calculation.

Here is the link to contact CRA

Thank you for choosing TurboTax.

[tbleaney]

The question relates specifically to the first partial year of OAS benefits.  When TurboTax calculates if there is any clawback required, the amount is assumed to apply to a full year of OAS benefits.  E.G.  If the partial clawback would equal 50% of a full years OAS but you only received OAS for the last 6 months of the year, then TurboTax clawsback all of the benefit.  This is not an issue after the first partial year.

[TurboTaxAniqua]

@tbleaney If your income exceeds the OAS clawback threshold level, the amount of the clawback will be deducted on line 23500 (line 235 prior to 2019) social benefits repayment.  This reduces your taxable income so that you are not taxed on the clawback amount being paid back. 

The clawback will also be shown on line 42200 (line 422 prior to 2019) social benefits repayment, which adds the amount to your total payable.

We suggest you to contact CRA for more details about the clawback, as it's a specific calculation.

Here is the link to contact CRA

Thank you for choosing TurboTax.