Social benefits clawback deduction |
How does DT Max calculate the social benefits clawback
deduction in cases where the income consists of old age
security benefits and the federal supplement?
DT Max adopts the same approach as the CRA, as long
as the federal supplement is repaid first.
Example:
Total income: |
$90,311.92 |
OAS: |
$5,311.92 |
Supplement: |
$5,000.00 |
|
------------ $10,311.92 |
Net income before adjustments: |
$90,311.92 |
Basic amount: |
($75,910.00) |
|
------------- $14,401.92 |
|
x 15 percent |
|
------------- $2,160.29 |
Social benefits repayments (line 235): |
$2,160.29 |
Other payments deduction (line 250): |
$5,000.00 |
October 31, 2002
|