# Basis for OAS recovery



## brianps (Jul 17, 2015)

Hi all - I'm a brand new member of this forum, and this is my first post, so I hope this question is not too dumb.

I retired in January this year (2015), and started receiving CPP and OAS (as well as income from other sources - RRIFs etc.). Beginning in February, my OAS was reduced by 57% based, as I understand it, on my 2014 income. But in 2014, I was still employed and earned well above the threshold of 72-odd thousand dollars.

But my income for 2015 will be substantially less than the clawback threshold, and i am wondering what if any options I should be pursuing st this point. Or is this just an example of how the system works?

Thanks in advance for any help!


----------



## OhGreatGuru (May 24, 2009)

I'm not sure, but I think this is a "Catch 22" you can't get out of. It will all balance out when you file your taxes next year, and if you are below the threshold they will reduce the withholding amount in June/July. But in the meantime they have your money.

A couple of years ago I had a higher-than-average income, causing them to reduce my OAS. I filed an appeal based on what my projected income would be, but it didn't do me any good. They just said they use previous tax year's income, end of story.


----------



## Dogger1953 (Dec 14, 2012)

brianps -Revenue Canada has a process whereby you can request that your OAS clawback be based on your estimated 2015 income rather than your actual 2014. Here's a link to the form that you have to complete: http://www.cra-arc.gc.ca/E/pbg/tf/t1213_oas/README.html

I understand that they don't always approve the request, but worst-case scenario you get a refund when you file your 2015 taxes as OGG says.


----------



## brianps (Jul 17, 2015)

Thanks to both of you for getting back. That's more or less what I thought. I have to say thought that I have found the Service Canada articles on this to be a little confusing (well, more than a little confusing). 

Thanks again!


----------

