T4A OAS 'pension paid' less 'income tax deducted' ...

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
Announcements
For information related to Covid-19 and how to get help if you lost your job, please see The Covid-19 Tax Info Center
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

T4A OAS 'pension paid' less 'income tax deducted' is smaller than T1 line 235 (Social Benefits Repayment) amount! Isn't the tax hit limited to OAS amount received?

The CLAW worksheet comes up with a 'social benefits repayment' number (after doing the 15% calculation on my income above the 75,910 base amount ) that exceeds my T4A box 18 less box 22 number -  by several hundred dollars! I thought what I pay back should be limited to the total less tax withheld? (I had no other types of benefit that might come into play.) 

3 Replies
Highlighted
Moderator

T4A OAS 'pension paid' less 'income tax deducted' is smaller than T1 line 235 (Social Benefits Repayment) amount! Isn't the tax hit limited to OAS amount received?

The reference to "net income before adjustments" doesn't refer to the amount of income tax that's been deducted at the source for your OAS. (You can elect to have as much income tax deducted as you like so it doesn't come into play at all.)

The "net income before adjustments" figure comes from line 234 of your T1 General. You can see that figure on Part 2 of the CLAW worksheet, just below part A.

Highlighted
New Member

T4A OAS 'pension paid' less 'income tax deducted' is smaller than T1 line 235 (Social Benefits Repayment) amount! Isn't the tax hit limited to OAS amount received?

Paid to have a TurboTax expert look over my return. She explained that TurboTax is correct as the social benefits repayment number is for the coming year and the T4A slip figures are from the previous year and the two are not related at all.
Highlighted
New Member

T4A OAS 'pension paid' less 'income tax deducted' is smaller than T1 line 235 (Social Benefits Repayment) amount! Isn't the tax hit limited to OAS amount received?

This doesn't make sense. If they deducted the amount of OAS benefit as income tax deducted and no money was received (or very little) why would you have to pay them back the benefit you never got. Would it not be more beneficial to not apply for the benefit in the first place? Is there something wrong with your program?