For the July 2025 to June 2026 recovery period (based on 2024 net income), the maximum income to avoid the OAS clawback is $90,997. If your net world income exceeds this amount, a "recovery tax" reduces your OAS by 15 cents for every dollar over the threshold. For the July 2026 to June 2027 period, the threshold rises to $93,454.
Your benefit is fully clawed-back if your income reached $148,451 (for those aged 65 to 74 inclusive) or $154,196 (for those aged 75 and over). For the period July 2026 to June 2027, the clawback starts if your 2025 income is over $93,454.
What is OAS clawback? The government starts reducing your OAS amount once you make over a given net world income threshold. For OAS payments received from July 2025 to June 2026, the threshold is $90,997. If your 2024 net world income is over the threshold, the reduction is triggered.
Income threshold: Every year, the CRA determines and adjusts the OAS income threshold for inflation. The minimum income recovery threshold for the 2025 income tax year is $93,454, and the maximum threshold is $151,668 for ages 65-74 and $157,490 for ages 75 and above.
From 20 September 2025, a single pensioner can earn $218 a fortnight and still be eligible for the full single pension of $1178.70 a fortnight, including all supplements. They can also earn up to $460 a fortnight from personal exertion – this is not included in the income test (refer to Work Bonus below).
Building a large Tax-Free Savings Account (TFSA) in your income-earning years can be instrumental in helping to prevent an OAS clawback when you're retired. Funds withdrawn from a TFSA are not included as retirement income subject to the clawback. Managing your minimum RRIF withdrawal.
One of the most effective ways to prevent commission clawback is by educating your clients. Explain the loan process, including the costs associated with refinancing or early repayment.
If your net world income exceeds the threshold amount ($90,997 for 2024), you have to repay part or your entire OAS pension. Part or your entire OAS pension is reduced as a monthly recovery tax.
The new senior tax deduction of up to $6,000 for single filers and $12,000 for joint filers, was created to help cover taxes on Social Security benefits. Taking the new senior deduction helps to reduce your taxable income, which can mean less tax or potentially an even bigger tax refund when you file your return.
1. Social Security reporting mistakes. Many retirees don't realize that Social Security benefits can be taxable, depending on total income. If you report your benefit incorrectly, or forget to include it altogether, the IRS system may flag the mismatch against your SSA-1099 form.
This mandatory clawback can be triggered when a company files either a “Big R” (formal amended SEC filing) or “little r” (out-of-period adjustment) restatement, so long as the restatement affects the financial metrics underlying incentive awards.
For tax year 2025 (filed in 2026), a senior (65+) generally doesn't owe federal income tax if their gross income is below $17,750 (single) or $35,500 (married filing jointly), thanks to an increased standard deduction and an additional $6,000/$12,000 deduction for age, though specific income sources and filing status are crucial. Social Security income has separate thresholds, and state taxes vary.
As you can see from the chart below, the 2026 maximum monthly amount paid by OAS is $742.31 for people between the age of 65 and 74, which comes out to $8,907.72 a year. If you are age 75 or over, the maximum payment is $816.54 in 2026.
Various factors can affect your pension benefits even after they've vested. Economic downturns, company bankruptcies, plan terminations, and even personal circumstances like divorce settlements can impact what you ultimately receive.
You can start collecting CPP at 60 and OAS at 65, and you can delay collecting them both until you're 70 (there is no benefit to delaying any longer than this).
Break-Even Age for Delaying CPP/OAS: CPP (starting at 70) provides about 42% more monthly benefit than starting at 65. OAS (starting at 70) gives up to 36% more monthly benefit. The break-even age where total benefits received catch up to what you would have gotten if you started earlier is usually in the early 80s.
The State of Clawbacks in 2025: Lessons From the Trenches. Congress introduced the Dodd-Frank clawback rule with a straightforward goal. If a company restates its financials due to errors, officers should return any incentive-based compensation they received based on those incorrect numbers.
How far back can a clawback go? Clawbacks can extend several years, depending on company policies, contracts, and regulations. In some cases, like SEC clawback rules, they can go back up to three years following a financial restatement.
The OAS clawback threshold for 2025 is $93,454. This means that if your net annual income exceeds this amount, you will have to repay a portion of your OAS benefits. For every $1 of income above $93,454, the maximum OAS pension is reduced by 15 cents. For 2025, the maximum OAS pension is $8,732.
Canada's 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.