Q: I’m a senior and my annual income is less than $22,000. Would I qualify for the Guaranteed Income Supplement?
A: It depends on whether you are currently receiving Old Age Security (OAS). The Guaranteed Income Supplement (GIS) is a monthly, non-taxable benefit for low-income seniors in Canada. It’s added on top of Old Age Security (OAS) and its purpose is to make sure that older Canadians with low income can cover basic living costs.
About 2.2 million Canadian seniors receive the GIS, says John Stapleton, social policy, ageing and well-being policy fellow at the National Institute on Ageing.
To qualify for the GIS, you must be 65 or older and living in Canada, and your income must fall below certain thresholds that vary depending on whether you are single, married or common-law.
Most importantly, you must be receiving the Old Age Security pension to qualify for the GIS, since it’s meant to supplement OAS. That means if you’ve chosen to defer OAS, you are not yet eligible for the GIS.
For example, a 68-year-old with an annual income of less than $22,440 who has deferred OAS would not yet receive GIS. If that person begins OAS at 70, their GIS entitlement would also start at the same time, and the low-income level they report on their tax return may qualify them for a small amount of GIS.
Single seniors are eligible for some GIS if their income falls below about $22,440 (not including income from OAS). For couples where both spouses receive OAS, their combined income must fall below $29,616 for one spouse to be eligible for the GIS. For couples where one spouse is receiving the Allowance, their combined income must fall below $41,472 for the other spouse to qualify for the GIS. (The Allowance is a non-taxable payment for low-income seniors who are 60 to 64.) If one spouse does not receive OAS or Allowance, the other spouse qualifies for the GIS when their combined income falls below $53,808.
You can apply for the GIS when you apply for OAS, Stapleton says. Service Canada will check your application against your tax return.
Single seniors and couples with no income other than the OAS receive the maximum GIS top-up. “Maximum monthly benefits are over $1,100 but very few seniors get this amount as CPP and other income reduces GIS, as the GIS is income-tested,” Stapleton says. The amount is then gradually reduced by $2 for every $4 of annual income until it is completely phased out at specified combined annual income thresholds.
OAS and CPP payments count as taxable income, but the GIS does not. You still need to report GIS income on your taxes, since GIS income can reduce refundable credits such as GST credits, Stapleton explains. You need to file your taxes by April 30 every year to avoid a disruption in your payments.
You have to be reapproved for the GIS every year. The government will review your income based on your tax return and determine whether you will continue to receive the GIS for the next 12 months.
Essentially, the GIS is designed for seniors with modest incomes. If you’ve deferred OAS, you’ll need to start it before you can collect the GIS. Once you do, having a low income level means you’ll likely qualify.
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