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Seniors -> Guaranteed income supplement

Guaranteed Income Supplement (GIS) for Canadian seniors, and the Allowance

The Federal Guaranteed Income Supplement (GIS) is available to low-income seniors living in Canada, who are receiving (or are eligible to receive) the Old Age Security Pension (OAS). An application must be filed to receive this supplement - it is not done automatically when you file a tax return.

Once a person is receiving the GIS, it will be automatically adjusted each year after the income tax return is filed. However, if there is a reduction in your pension or employment income, Service Canada may calculate your GIS benefit by estimating your pension and employment income for the current year, instead of using last year's pension and employment income. If you or your spouse or common-law partner have a lower income this year for either of these reasons, you should contact Service Canada. Your benefits may increase.

For January to March 2013, the maximum combined payment from OAS plus GIS is $1,286.51 ($546.07 OAS + $740.44 GIS) per month, for a single person. This maximum is reached if there is no income other than OAS and GIS.

Income from GIS is tax-free. However, it is reported on Line 150 of the personal income tax return, so is included in Line 150, Total Income for Tax Purposes and Line 236, Net Income for Tax Purposes. It is later deducted on Line 250 of the tax return, so is not included in Taxable Income. See our article on Taxable Income for an explanation of how this affects your income tax and income-tested benefits.

The amount of GIS payable depends on marital status and total income for the prior year. Total income for GIS purposes is income from line 236 of the personal income tax return, less

OAS and GIS income

the lesser of

	$3,500, and
	your employment income minus allowable deductions including CPP or QPP contributions and EI premiums

The following would be eligible to receive GIS in 2013, based on 2012 income:

	single persons with total income less than $16,560.
	married/common-law couple, both OAS pensioners, with combined total income less than $21,888
	OAS pensioners whose spouse/common-law partner is not receiving OAS, with combined annual income less than $39,696

Although the GIS is normally determined based on the previous year's income, if an OAS pensioner or spouse retires or has a reduction in income for some other reason, as per s. 14 of the Old Age Security Act, Service Canada may use an income estimate for the current year to determine eligibility. However, if the actual income is later determined to be different from the estimated income, s. 18 of the OAS Act allows for an adjustment of the GIS paid. This could result in additional GIS being paid, or excess GIS being deducted from future payments.

See the Old Age Security Payment Rates to get an idea of how much you might receive from OAS and GIS. If you receive the maximum OAS pension, the amount you might receive from GIS can be estimated using the Service Canada interactive Tables of Rates.

Currently, the GIS must be applied for. However, proactive enrolment for OAS and GIS will be implemented in a phased-in approach from 2013 to 2016, so that applying will no longer be necessary. See Changes to Old Age Security on the Service Canada website.

For more information, see Applying for the Guaranteed Income Supplement on the Service Canada website. More detail on eligibility and how income is calculated for purposes of the GIS can be found in the Overview of the Old Age Security Program on the Service Canada website.

Allowance (ALW)

The Allowance, until April 2023, is available to 60 to 64 year old spouses/common-law partners of OAS pensioners who receive the Guaranteed Income Supplement (GIS). The Allowance is available when 2012 combined annual income of both spouses (excluding OAS and GIS) is less than $30,672.

Allowance for the Survivor (ALWS)

The Allowance for the Survivor may be available if your spouse or common-law partner has died, you are 60 to 64 years old, and your 2012 annual income (again, excluding OAS and GIS, etc.) is less than $22,320. See the Service Canada web page on The Allowance for the Survivor.

Income from the Allowance is tax-free.

Applying for the Allowance

The Allowance must be applied for. For more information, see Allowance Program on the Service Canada website.

Allowance - Change in eligibility age

Starting in April 2023, the ages at which the Allowance and the Allowance for the Survivor are provided will also gradually increase to 62-66. See Changes to Old Age Security on the Service Canada website. This will affect those born on or after April 1, 1963.

Service Canada Contacts

To contact Service Canada re GIS questions, see the Service Canada Contact Income Security Programs web page.

Revised: January 30, 2013

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