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 2012, the maximum combined payment from OAS plus GIS is $1,272.48 ($540.12 OAS + $732.36 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

The following would be eligible to receive GIS in 2012, based on 2011 income:

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.

The GIS must be applied for.  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.

The Allowance is available to 60 to 64 year old spouses/common-law partners of OAS pensioners who receive the GIS, when 2011 combined annual income of both spouses (again, excluding OAS and GIS, etc.) is less than $30,336.