TAXTIPS.CA recently released some updated information about the Federal Guaranteed Income Supplement or GIS. The GIS is available to low-income seniors living in Canada who are eligible to receive the Old Age Security Pension or OAS. Income from the GIS is tax-free.
Seniors who want to receive this supplement must file an application as it is not done automatically when you file your income tax return. Once the individual starts receiving the GIS, it will be automatically adjusted each year after the income tax return is filed.Please note that for cases wherein the senior’s pension or employment income is reduced, Service Canada will opt to calculate the GIS amount by estimating the pension and employment income for the current year instead of using last year’s pension and employment income. So if you or your spouse or common-law partner has a lower income this year for either of these reasons, you should contact Service Canada to check if your benefits can be increased.
For January to March 2012, the maximum combined payment from the OAS and the GIS is $1,272.48 ($540.12 OAS + $732.36 GIS) per month for a single person. This maximum amount can only be received if the senior has no other income except from these 2 sources.
In 2012, the following would be eligible to receive the GIS based on 2011 income:
- Single persons with total income less than $16,368.
- Married or common-law couple, both OAS pensioners with combined total income less than $21,648.
- OAS pensioners whose spouse or common-law partner is not receiving OAS with combined annual income less than $39,264.
The allowance is available to spouses or common-law partners of OAS pensioners who receive the GIS aged 60 to 64 years old when 2011 combined annual income of both spouses (excluding OAS and GIS, etc) is less than $30,336.
Reference: taxtips.ca article - Guaranteed Income Supplement (GIS) for Canadian Seniors, and the Allowance