W.C. Harding (613) 957-8953
19(1)
May 11, 1990
19(1)
This is in reply to your letter of April 16, 1990 wherein you requested information on the taxation of Old Age Security Income.
Old Age Security Pension (OAS) payments are part of your taxable income and are taxable. OAS payments are shown in box (F) on your T4A (OAS) Information Slip and should be reported at line 113 of your 1989 Income Tax Return. The Guaranteed Income Supplement (GIS) is, however, not taxable and should not be reported as taxable income. The GIS, if you receive it, is shown in Box (H) of the T4A (OAS).
We cannot advise you as to whether or not your have taxes payable as the information provided was not sufficient. The taxes payable may however be determined by you through the completion of step 5 of your income tax return.
Once you have determined your taxable income, use Table A provided with your return to look up the Federal Tax Payable and enter this amount at line 401 of your return. Next calculate the non-refundable tax credit in respect of your Basic and exemptions. Should, as you advised, these be the only exemptions available to you, your credit, determined from Table A would be $1,587.00 for 1989. This amount should be entered at line 402 of your return and be deducted from the Federal Tax Payable previously calculated.
Following step 5 of your return you must then determine your federal surtax and provincial taxes and deduct from the total any credits you may have such as taxes withheld per box (G) of your T4A (OAS), federal sales credit tax, Ontario tax credit and taxes paid through instalments.
The balance after deducting these items will be your tax payable or refund available.
When completing your return you should also ensure you complete the new Federal Goods and Services Tax Credit Form provided with your return. Completion of this will ensure you are advised of any entitlement you may have to this credit when it is determined at a later date in 1990.
We trust this information will be of assistance to you. However, should you need further help, please feel free to phone Mr. Wayne Harding at (613) 957-8953 or the Ottawa District Office Enquiries number at 1-800-267-8440.
Yours truly,
W. Douglas for Director Financial Industries Division Rulings Directorate