Guaranteed Income Supplement ( GIS) Explained

Did you know that according to Statistics Canada, over 860,000 seniors in Canada live on low income? This can make affording basic necessities like housing, food, and medication a challenge.

The Guaranteed Income Supplement (GIS) is a vital government program designed to bridge this financial gap for low-income Canadian seniors. Administered by Service Canada, the GIS provides a non-taxable monthly payment to eligible recipients on top of their Old Age Security (OAS) pension. This extra income helps ensure a more comfortable standard of living and peace of mind in their golden years.

Understanding the GIS

The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit administered by Service Canada to supplement the Old Age Security (OAS) pension for low-income Canadian seniors.

Established in 1966, the GIS plays a crucial role in Canada’s social safety net by helping to ensure seniors have a basic standard of living. It’s distinct from other income support programs, as it’s specifically designed to top up the OAS pension based on income.

Eligibility for the GIS in Canada

There are key criteria you must meet to be eligible for the GIS. Here’s a breakdown:

• Age: You must be 65 years of age or older.
• OAS: You must be receiving or be eligible to receive the Old Age Security pension.
• Income: Your net annual income must fall below a specific threshold. This amount varies depending on your marital status:
  • Single, widowed, or divorced: Your income must be below 21,624(as of July 2023).∗∗∗Couples:∗∗The combined income of your spouse/common-law partner must be below the following thresholds:∗∗∗28,560:** If your spouse/common-law partner receives the full OAS pension.
    • $51,840: If your spouse/common-law partner does not receive an OAS pension.
    • $39,984: If your spouse/common-law partner receives the Allowance benefit (explained later).

Allowance Benefit: Spouses or common-law partners aged 60 to 64 of GIS recipients may be eligible for the Allowance benefit under certain conditions, such as living in Canada for at least 10 years since turning 18 and having a combined income below a specific threshold.

Future Changes: It’s always wise to check for updates on eligibility criteria. You can find the latest information on the official Canada.ca website.

Calculating Your GIS Payment in Canada

The amount of GIS you receive depends on your individual income and marital status. It’s not a fixed amount, and it decreases gradually as your income increases beyond the eligibility threshold.

Here’s a simplified explanation:

• Maximum Payment: If your income falls below the income threshold mentioned in the previous section, you’ll receive the maximum GIS amount.
  
  • For single seniors as of July 2023, this is $1,065.47 per month.
  • For couples, the maximum amount varies depending on their situation (see previous section).
• Reduced Payment: As your income rises above the threshold, your GIS benefit amount decreases.
  

Canada.ca provides a helpful online tool to estimate your monthly GIS benefit based on your specific circumstances.

Additional factors:

• The GIS payment is adjusted quarterly to keep pace with the cost of living using the Consumer Price Index (CPI).
• If you haven’t filed your tax return, Service Canada may withhold a portion of your GIS payment (called a holdback). This can be resolved by filing your return.
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Applying for the GIS in Canada

The good news is that many eligible seniors qualify for the GIS automatically if they’re already receiving the Old Age Security pension. Service Canada will notify you if this applies to you.

However, you may need to apply for the GIS if:

• You’re not yet receiving the OAS pension.
• You live outside Canada but meet other eligibility requirements.

Here are the ways to apply:

• Online: You can apply quickly and easily through the secure My Service Canada Account.
• Mail: Download and complete the Application for the Old Age Security Pension and the Guaranteed Income Supplement (ISP-3550) form from and mail it to Service Canada.
• Phone: Call Service Canada at 1-800-277-9914 to speak with a representative and initiate the application process.

Need help? Service Canada representatives are available to answer your questions and guide you through the application process. They can also connect you with resources in your community that can assist you with the application.

Processing Timeline: While processing times can vary, you can generally expect a decision on your application within a few weeks. Once approved, you’ll receive your first GIS payment shortly after.

Benefits and Considerations of Receiving the GIS

The Guaranteed Income Supplement (GIS) offers significant advantages for eligible low-income Canadian seniors:

• Improved Financial Security: The GIS provides a vital income boost that can help seniors afford basic necessities like housing, food, and medication. This financial security can alleviate stress and improve overall well-being.
  
• Real-Life Examples: Imagine a senior struggling to afford groceries or their monthly medications. The GIS can make a real difference in their ability to meet these essential needs and maintain a decent standard of living.
  

Considerations:

• Tax Implications: While the GIS itself is non-taxable, it may affect the amount of Old Age Security (OAS) clawback you owe if your total income exceeds a certain threshold. It’s recommended to consult a tax professional about your specific situation.
  
• Reporting Income Changes: It’s crucial to inform Service Canada of any changes in your income throughout the year. This ensures you receive the correct GIS amount and avoids potential overpayments or disruptions in benefits.
  
• Financial Planning: The GIS can be a helpful tool for seniors to manage their finances. The Government of Canada offers various resources and programs to assist with financial planning for seniors, such as workshops or budgeting tools. You can find more information on the Canada.ca website.
  

Living with the GIS in Canada

Many seniors have questions and concerns about how the GIS interacts with other benefits or their employment situation. Here’s a breakdown to address some common issues:

• OAS Clawback: The Old Age Security (OAS) pension is subject to a clawback if your total income exceeds a specific limit. This means you may have to repay a portion of your OAS benefits. The GIS amount you receive can affect the amount of clawback owed, but it doesn’t directly reduce your GIS payment.
  
• Working While Receiving GIS: The good news is that receiving the GIS does not prevent you from continuing to work and earn income. Your GIS benefit amount will simply adjust based on your total income as explained earlier.
  
• Other Government Benefits: The GIS is compatible with most other government benefits available to seniors in Canada. For example, you may qualify for the Guaranteed Minimum Income for Seniors (GMINS) offered in some provinces alongside the GIS.
  

Resources for GIS Recipients:

Service Canada offers various resources and programs to help GIS recipients manage their finances and well-being:

• Financial Planning Workshops: These workshops can provide valuable information on budgeting, saving strategies, and maximizing your retirement income.
• Tax Preparation Assistance: Many community organizations offer free tax preparation assistance for seniors. This can ensure you’re claiming all the deductions and credits you’re entitled to.
• Social Programs for Seniors: Government programs and community initiatives can offer support with social activities, transportation assistance, and other needs.

Maximizing Your Benefits Alongside the GIS

The GIS is a crucial benefit, but it’s not the only program available to help low-income Canadian seniors. Here are some additional options to explore and potentially increase your financial security:

• Canada Pension Plan (CPP): This government program provides a monthly retirement pension based on your contributions throughout your working life. Check your eligibility and contribution history with Service Canada.
  
• GST/HST Credit: This tax credit helps low- and modest-income individuals and families offset a portion of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) they pay. You may qualify for the GST/HST credit in addition to the GIS.
  
• Provincial/Territorial Benefits: Many provinces and territories offer additional benefits or income support programs specifically for seniors. Explore your provincial/territorial government website for details.
  

Finding the Right Benefits:

• Benefits Navigator Tool: The Government of Canada offers a helpful online tool called the “Benefits Navigator” that can help you identify all the benefits and credits you may be eligible for.
  
• Community Organizations: Many community organizations specialize in assisting seniors with accessing government benefits. Contact your local senior center or social services agency for information and guidance.
  

Maximizing Your Finances:

• Tax Deductions and Credits: Seniors may qualify for various tax deductions and credits that can further reduce their tax burden. Consult a tax professional or explore the Canada Revenue Agency website (https://www.canada.ca/en/revenue-agency.html) for more information.

The Guaranteed Income Supplement (GIS) is a vital program that bridges the financial gap for low-income Canadian seniors. By providing a non-taxable monthly benefit on top of the Old Age Security (OAS) pension, the GIS helps ensure a more dignified standard of living in their golden years.