# GIS question



## Saniokca (Sep 5, 2009)

Hi, I have a question about the GIS.

My in-laws will retire in about 5 years. The retirement income will comprise of the following:
Father:
1) Pension from his employer - about 10k/yr
2) CPP - about 6k/yr (less then maximum since he has about 20 years of canadian employment history)
3) OAS - this would be about 4k/yr (550/m and 24 years of Canadian residency out of 40 required for the max)
Total = 20k/yr

Mother:
1) CPP - probably not more than 4k/yr (lower income and fewer years)
2) OAS - about 4k (same as father)
Total = 8k/yr

Based on my understanding neither of them will be eligible to the GIS because their combined income is above the combined maximum (approximately 23k today). Is this correct? Looks like they are better off divorcing...


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## NorthernRaven (Aug 4, 2010)

I don't think OAS income is counted for GIS eligibility purposes. Also, what are their ages - there are different tables for someone at 65 whose partner is also getting OAS (65+), or getting the GIS Allowance (60-64), or neither (< 60). Finally, would there be any interest/dividend income from investments.


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## Saniokca (Sep 5, 2009)

Thanks for your response. 
I assumed that both will be 65. They don't have any investments - they have just paid off the mortgage recently. Going forward they will probably start putting money away in TFSAs but that wouldn't count for income purposes later.

I think you are right about OAS not being counted. So then their combined income (without OAS) is about 20k which is below the maximum. This means that they would receive something but it remains to be seen how much...


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## NorthernRaven (Aug 4, 2010)

There's a handy govt OAS/GIS page here, with a link to a PDF of the detailed tables. If both are 65+, it looks like 20K of (non-OAS) income would give them about $60/month each above OAS, diminishing down to nothing at the $22.8K cutoff. They could increase that a bit for the first years by deferring CPP, but that doesn't look feasible.

Make sure the CPP applications takes into account any potential "child-rearing" years - this can increase CPP by "dropping-out" some years where someone stayed at home with children. I think this question is on the form now, but it wasn't many years ago.


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## Saniokca (Sep 5, 2009)

I just spoke to Service Canada. Based on the income of 16k (father) and 4k (mother) they would each qualify for $630/m (OAS+GIS). That's more than 60/m above OAS. The agent told me it's 340 for OAS and 290 for GIS. Are the tables in your link for people receiving full OAS? Based on the information on the service canada website it matters whether it's full or partial OAS (theirs is partial).

All the children were "reared" before they came to Canada so no respite there 

So the updated income would be:
Father:
1) Pension from his employer - about 10k/yr
2) CPP - about 6k/yr (less then maximum since he has about 20 years of canadian employment history)
3) OAS+GIS - this would be about 7.5k/yr (550/m and 24 years of Canadian residency out of 40 required for the max)
Total = 23.5k/yr

Mother:
1) CPP - probably not more than 4k/yr (lower income and fewer years)
2) OAS+GIS - about 7.5k (same as father)
Total = 11.5k/yr

Looks a bit better now...


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## NorthernRaven (Aug 4, 2010)

Yup, $570 OAS + $60 GIS would be $630, as per the tables at $20K. And if there is an age gap, there would be higher amounts available through the Allowance until the second hits 65 and gets OAS. It doesn't sound like there are any RRSPs, but if there were, mandatory RRIF withdrawals from age 71 would be included as income. According to this income tax calculator, there would seem to be no or minimal tax due on the amounts you mention, depending on the province.


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## Dogger1953 (Dec 14, 2012)

Service Canada gave you the correct information for your in-laws if they receive partial OAS of 24/40ths.

If you are interested in further details, read this article: http://retirehappy.ca/receiving-partial-oas-pension-affects-gis-amounts/


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## Daniel A. (Mar 20, 2011)

GIS is based on combined household income not individual.


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## NorthernRaven (Aug 4, 2010)

Saniokca said:


> I just spoke to Service Canada. Based on the income of 16k (father) and 4k (mother) they would each qualify for $630/m (OAS+GIS). That's more than 60/m above OAS. The agent told me it's 340 for OAS and 290 for GIS. Are the tables in your link for people receiving full OAS? Based on the information on the service canada website it matters whether it's full or partial OAS (theirs is partial).
> 
> All the children were "reared" before they came to Canada so no respite there
> 
> ...


Sorry, I meant $60 above full OAS - it would be something like 570+60=$630. I think under the limit GIS would just "fill in" missing OAS by being clawed back less, so it might be something like (24/40 of $570 = $340) plus $290 GIS, coming out to the same $630 total. Your case would probably save a few extra dollars since I think OAS is taxable while GIS is not?

It might be worth double-checking to make sure there aren't any sort of pension credits or eligibility transfer from the country of origin.


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