Old Age Security (OAS) Pension
You may be required to repay part or all of your old age pension if your net income before adjustments (line 234 on your tax return) exceeds $77,580
Will I have to repay part of my pension next year?
If you have to pay back part of your OAS pension this year, an appropriate amount will be deducted from your future OAS pension payments as a recovery tax. This way, you will have your deductions spread over your 12 monthly pension payments instead of paying back a lump sum at tax time. You will receive an Advisory Letter informing you of any Recovery Tax deductions being withheld from your OAS pension payments.
If these deductions cause financial hardship you may ask the Canada Revenue Agency to review your situation.
Canada Revenue Agency (www.cra.gc.ca)
toll-free in Canada and the U.S. 1-800-959-8281
toll-free in Canada and the U.S. 1-800-665-0354 (TTY)