# Will this affect OAS/CPP payments for my (retired) folks?



## hedgehog12 (Feb 28, 2011)

Hi everyone,

I'm currently living in BC with my folks, both of whom are retired (65+) and receiving OAS/CPP payments per month (pension from the government). 

I have a short question. Recently I've seen some bonuses online where you sign up for bank accounts (like ING Direct) and get bonuses like $50 and $150 (from TD). 

My question is if they sign up for those accounts and receive said bonus, will that count towards their income for the year?

Will it affect or lower the amount of government pension they receive?

I'd like them to sign up cuz its a good deal, but I'm worried they will receive a reduced pension as a result.

Thanks!


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## Jon_Snow (May 20, 2009)

Are you really concerned about sums like $50 or $150?

Am I missing something?


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## GoldStone (Mar 6, 2011)

Account bonuses don't count as income. I received countless bonuses in the past. Banks never issued T3/T5 slips to report them, even though some of those bonuses were more than $50 - the cut off limit after which the banks are required to issue a tax slip.


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## piano mom (Jan 18, 2012)

hedgehog12 said:


> bonuses online where you sign up for bank accounts (like ING Direct) and get bonuses like $50 and $150 (from TD).


Really, $150 from TD? What's the detail i.e. how much initial deposit needed?


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## hedgehog12 (Feb 28, 2011)

Thanks for your help! 
I suppose I shouldn't be worried about such small sums, and it's great to know it won't affect their pension 

here's the TD link:

http://www.tdcanadatrust.com/products-services/banking/edb-index.jsp

The most recent one just finished and I was too scared to sign them up for it, but TD does these promotions couple times a year so keep an eye out


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## cardhu (May 26, 2009)

hedgehog ... the bonuses are most likely considered interest income, for tax purposes ... but it is such an obscure little detail that very little has been written about it ... the good news is that it most likely wouldn’t affect your parent’s CPP/OAS anyway, because ... 


There’s no such thing as a CPP clawback ... CPP is *never* reduced on the basis of other sources of income.
OAS is clawed back in some cases, but only for the top 3% or so of highest-earning seniors in the country ... the clawback affects only those with income in excess of about $70k per year *per person*. Therefore, a senior couple who have made good use of income-splitting opportunities can draw almost $140k per year before even a single penny of OAS gets clawed back. 
Now I am only spit-balling here, but I’m guessing that if your parents were drawing in excess of $140k/yr retirement income, you might not have started this thread. 

In any case, may I suggest that you step back and re-examine what you’re asking ... even if their pensions were reduced as a result of the bonus, they would still be further ahead by having received the bonus, than by not receiving it ... if they received a $150 bonus, and between taxes and clawbacks had to give back $70, would they not still be $80 ahead?


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