Canada's Old Age Security (OAS) program features two types of payments: pension payments which are taxable and benefit payments which are not taxable. It is possible to request federal income tax to be automatically deducted from monthly pension payments by filling out Form ISP3520. Alternatively, recipients may set up quarterly installments by contacting a CRA tax office.

The 3 types of OAS benefits are:

•  Guaranteed Income Supplement (GIS)
•  Allowance
• Allowance for the Survivor

To be eligible for OAS pension payments, the applicant must:

• be 65 years or older

• be a Canadian citizen or legal resident at the time of applying

• have resided within Canada for at least 10 years after turning 18.

If the applicant is living outside of Canada, then they must have been a citizen or resident the day before they left and had resided in Canada for at least 20 years after turning 18.

For more information concerning this topic, click here.