Asked by Makayla Caplinger on May 10, 2024
Verified
Through a calculation (on Canadian Individual Tax Returns) known as the "Old Age Security clawback," an individual receiving Old Age Security (OAS) benefits must repay an increasing proportion of these benefits to the federal government as the individual's net income rises beyond a certain threshold. If the OAS clawback is 15% of net income exceeding $64,000, at what amount of net income must a taxpayer repay all $5,900 of OAS benefits received in the year?
Old Age Security Clawback
A repayment obligation that kicks in when the annual income of an Old Age Security (OAS) recipient exceeds a certain threshold, reducing the OAS benefit.
Net Income
The sum of income remaining after subtracting all costs and taxes from the total revenue.
Tax Returns
Documents filed with the government detailing income earned, tax payable, and other financial information, used to assess tax liabilities.
- Absorb and put into practice essential arithmetic operations and features to overcome practical problems.
Verified Answer
NS
Learning Objectives
- Absorb and put into practice essential arithmetic operations and features to overcome practical problems.