Previously 85 percent of my socil security benefits has been taxable. what happens when other income falls.?
As your question is too general, I am assuming that you are getting OAS or EI. In both cases, if your annual income exceeds a threshold, a "clawback" mechanism takes into effect. In the case of OAS, if your income exceeds $60K, clawback takes into effect. When clawback occurs, you would need to repay back the govt overpaid you. Now once clawback happens, HRSDC, will start withholding tax for future cheques that you receive. Which is probably what your case is. The purpose of this is so they don't "overpay" you and prevents you from repaying. When your income falls, you would need to call CRA to request for a waiver. Once your request is approved, HRSDC will stop withholding taxes until another clawback occurs. |
