Canada OAS Payments: 3 Mistakes That Could Lead To CRA Suspension

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If you are on the Canadian OAS pension, new developments could potentially halt your monthly payments. The CRA checks a number of requisites to keep beneficiaries eligible for this federal benefit. Sometimes skipping on key requisites or committing common errors may delay your payments, reduce benefits, or result in financing clawbacks. Below are 3 red flags that could affect your OAS in 2025: 

1. Your Income Exceeds the OAS Clawback Threshold

One of the most common reasons for a senior losing some (or all) of his or her OAS payment is really high income. For the year 2025, the annual net income that is more than around \$90,997 could cause conflicts related to the OAS Recovery Tax, or just the clawback. 

  • The clawback reduces your OAS at a rate of 15 cents for every dollar earned above the threshold.
  • An extremely high income (something well above \$148,000+) could negate the whole benefit.

Tip: Manage your taxable income through income splitting or TFSA.

2. Failure to File Your Tax Return

Regardless of whether there are taxes due, withholding of OAS payment can be occasioned by not submitting tax returns. Your income is verified by your tax return, and that is how you qualify for OAS and other programs such as GIS.

  • Tax returns missing or late could eventually delay payments or completely stop them.
  • Make sure to file your tax return on or before 30 April each year.

Tip: For the fastest processing, consider using CRA’s Auto-fill My Return service or file electronically.

3. Away for an Extended Period

To receive benefits while residing abroad, an OAS beneficiary should have resided in Canada for 20 years after turning 18; leaving Canada for an extended time would hurt this requirement and thus may lead to the termination of sponsor’s eligibility.

  • A few days for a brief trip are fine, while long-term relocation is subject to reassessment. 
  • Always advise Service Canada of any overseas travel plans or relocations abroad.

Tip: Keep a record of your travel history and address changes should such details be required for verification.

Also Read:Canada Pension Plan 2025: New Maximum Benefit Set At $1,364 Per Month

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