A couple of years back I was presenting a Cross-Border webinar in which I discussed the Canadian Old Age Security (OAS) benefit. A few minutes after the webinar, a lady called me in a panic. She was 70 years old, recently retired, and was told by her Canadian financial advisor that she didn’t qualify for OAS because she didn’t have 20 years of Canadian residency.
During our short discussion, we determined that she should be eligible for about a C$315 per month benefit. She was almost in tears to learn about an extra C$315 per month that she could expect. A year later, she called me to let me know that because of my webinar, she just received a C$3,500 check for OAS backpay and would start collecting C$315 per month going forward. She was ecstatic.
In this video, we discuss the following:
– The basics of OAS
– Qualifying for OAS
– 2 big misconceptions about collecting OAS
– Starting your OAS benefit as a U.S. resident
Click on the picture below to start the video.
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You are indeed a fountain of knowledge. Thank you for the information. I had planned to begin the OAS application this month, and had assumed it would be best to have them deposit the payments into my Scotiabank account in Canada, but am not 100% sure if that would incur any penalties or double taxation issues. Will need to research that a bit. Will call them on Friday when I have a few hours to wait on hold. Thanks again.
Hi Richard,
I appreciate the kind words. If you are a U.S. resident, it doesn’t matter where your money is deposited. Either way, there is no tax withholding by Canada. You will have to include the income on your U.S. tax return, it doesn’t matter where the funds are deposited. I typically suggest depositing the money in your U.S. checking account unless you travel to Canada often and have a lot of expenses there. Thanks, and good luck.
Bryan
Hi Bryan, I’m so impressed with your knowledge! This is super information. As a non resident of Canada finally with you video I understand about how the 20 years after the age of 18 to qualify for OAS actually works. I’m a Canadian now living in the USA… I only worked 10 quarters so far in the USA (home with kiddos) but I have 13 years of contributions to CPP. ++++++ I am wondering if like for CPP benefits Canada just looks at do you have any contributions in a year for it to “count”… if that’s the case then I have 4 years in the USA that have SS contributions, which puts me much closer to the 20 years needed to receive OAS… If they count full 4 quarters as a year toward OAS then I only have 2.5 years. I’m 60 so I have another 10 years to work a bit now that kiddos are grown to get a few more years of SS contributions. Just wondering about this finer detail.
Hi Anita, I appreciate the kind words. My understanding is that they count quarters. Therefore, you have 2.5 year or 10 quarters so far. You need 7 years of U.S. work to qualify for OAS. Therefore, you would need 4.5 years or 18 more quarters.
Thanks, Anita, good luck.
Best regards,
Bryan
Thank you!
Hi Bryan, So with 20 years contributions to (CPP+SS) after age 18, a person would qualify for OAS. Would you get 50% of OAS with that 20 years post age 18? —- If your CPP+SS contributions is more than 40 years, do you qualify for 100% of OAS? Thanks.
Hi, No, your SS benefit doesn’t help increase your OAS benefit, just helps you qualify for it if you don’t. If you have 20 years Canadian residency, you will get 1/2 of the maximum OAS benefit. Thanks, Bryan
Awesome video, thanks very much. I live in the US and lived in Canada for over 20 years after age 18 so qualify for OAS. Can I use my Social Security payments to increase my OAS or is this credit only available to help people qualify to get to 20 years to qualify for OAS?
Also is OAS subject to WEP like the CPP payments?
Thanks, I’m glad you like it. Social security doesn’t increase your OAS payments, it just helps you qualify if you don’t have 20 years of residency.
No, OAS is not subject to WEP.
Thanks,
Bryan