Old Age Security Claw-Backs

Flow-through investments can be an effective way to prevent the claw-back of old age security benefits. When taxable income reaches approx $62,000, old age security benefits begin to be clawed-back and at approx $100,000 of taxable income the old age security benefit is completely repaid. Flow-through investments tax deductions can be an effective tool in reducing the taxable income of seniors who have high levels of income and, on top of the flow-through tax deduction, can restore old age security benefits and in certain instances can provide other benefits such as additional GST and medical tax credits.