GIS income exemption at renewal

The Guaranteed Income Supplement (GIS) benefit, designed to assist low-income Old Age Security (OAS) recipients, undergoes a renewal period annually from July to June. For the July of current year to June of following year cycle, Service Canada typically reviews eligibility automatically. This renewal is generally based on your net income reported on your previous year’s income tax return, which includes your Net Employment Income and Net Self-Employment Income.

Income Exemption

A key feature for those with employment or self-employment earnings is that Service Canada will automatically apply the GIS earnings exemption. This means that if you and/or your spouse or common-law partner have employment or self-employment income, an exemption will be applied when calculating your GIS entitlement. Specifically, the first $5,000 of your annual employment or self-employment income is fully exempt. Following this, a partial exemption of 50% will be applied to annual employment or self-employment income between $5,000 and $15,000. The maximum total amount of employment or self-employment earnings that can be excluded under this exemption is $10,000 per person.

In most cases, if you file your taxes on time, your GIS benefit will be automatically renewed, including the application of any eligible earnings exemptions, without requiring a separate application. Service Canada will use the income information provided to the Canada Revenue Agency (CRA) to determine your ongoing entitlement and the amount of your GIS payments. You will usually receive a letter from Service Canada detailing your benefit amount or if more information is needed. It remains crucial to file your income tax return by the deadline each year, even with no income, to prevent interruptions. If your income has recently dropped significantly or your marital status has changed, contact Service Canada, as these situations could affect your benefits and might require further action. For the most current details, always consult the official Service Canada website (Canada.ca).

This means that any earnings you made under $5,000 will not affect your GIS monthly benefits calculation.

Please do keep in mind that GIS is an income-tested program, any income you made from the previous tax year will affect the upcoming GIS benefit year.

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