The Guaranteed Income Supplement (GIS) is an essential financial aid for many Canadian seniors. As a key supplementary benefit under the Old Age Security (OAS) Act, it provides additional support to eligible pensioners beyond the basic OAS pension. This article delves into the specifics of GIS, including eligibility, income thresholds, and application processes.
Table of Contents
What is the Guaranteed Income Supplement?
The GIS is a monthly, non-taxable benefit paid to eligible Canadian pensioners who receive the basic Old Age Security Pension. It aims to provide additional financial assistance to seniors with limited income, ensuring a more secure retirement.
Who is Eligible for the GIS?
To qualify for the GIS, you must meet the following criteria:
- Receiving the Basic OAS Pension: You must be enrolled in and receiving the basic Old Age Security Pension.
- Be a Canadian Resident: You must reside in Canada.
- Income Below Maximum Threshold: Your income must be below the maximum allowed income level.
What Are the Maximum Allowed Income Levels?
Eligibility for GIS is influenced by your marital status and your spouse’s OAS or Allowance status. Here are the maximum allowed income levels for the GIS, effective January 2024 to March 2024:
- Table 1: Single, Widowed, or Divorced OAS Pensioner
- Maximum Allowed Income: $21,624
- Maximum Monthly GIS: $1,065.47
- Table 2: Married or Common-Law OAS Pensioner with Spouse Also Receiving OAS
- Maximum Allowed Income: $28,560
- Maximum Monthly GIS: $641.35
- Table 3: Married or Common-Law OAS Pensioner with Spouse Not Receiving OAS
- Maximum Allowed Income: $51,840
- Maximum Monthly GIS: $1,065.47
- Table 4: Married or Common-Law OAS Pensioner with Spouse Receiving the Allowance
- Maximum Allowed Income: $39,984
- Maximum Monthly GIS: $641.35
Note: These income levels and GIS amounts are subject to quarterly adjustments based on changes in the Consumer Price Index.
How is GIS Payment Calculated?
Your GIS payment is typically reduced by 50 cents for every dollar of other income you earn. However, in some cases, the reduction can be up to 75 cents for every dollar of additional income due to recent GIS “top-ups”. The exact GIS amount is calculated using a set of complex rate tables.
To estimate your OAS and GIS benefits, you can use the OAS/GIS estimator available on the CRA website.
How to Apply for GIS
When you apply for OAS, you will be prompted to indicate if you also want to apply for GIS. If you choose to apply, you will receive a separate GIS application form. If you become eligible for GIS after your initial OAS application, contact Service Canada to request the GIS application.
Once you start receiving GIS, you will need to renew your benefit annually by completing your income tax return.
Can You Receive GIS Outside of Canada?
GIS is generally available only to Canadian residents. However, it can be paid during temporary absences from Canada for up to six months.
Other Eligibility Considerations
Certain conditions can affect GIS eligibility:
- Sponsored Immigrants: Typically, GIS is not paid during the sponsorship period.
- Incarceration: GIS eligibility is suspended if you are incarcerated in a federal prison for two years or longer.
Do Both Spouses Receive GIS?
If you receive GIS and your spouse or common-law partner is between the ages of 60 and 64, they may qualify for a GIS allowance, provided that your combined annual income is below the maximum threshold for the allowance. For January to March 2024, this threshold is $39,984.
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The GIS is designed to support low-income seniors receiving the OAS pension. It is a valuable aid that helps enhance financial stability during retirement. If you are eligible for GIS but not receiving it, don’t miss out—apply today! Nearly one-third of all OAS recipients in Canada benefit from GIS, highlighting its importance in securing a comfortable retirement for seniors.