Jing's husband Mike has always lived in Canada. He is 67 years old and has a net income of $100,000. Calculate Mike's OAS repayment due to the OAS slawback Minimum Income Recovery Threshold $79,845 Mike's calculation: Maximum Income Recovery Threshold $129,260

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Jing's husband Mike has always lived in Canada. He is 67 years old and has
a net income of $100,000. Calculate Mike's OAS repayment due to the OAS
slawback
Minimum Income Recovery Threshold
Maximum Income Recovery Threshold
$79,845
$129,260
Mike's calculation:
Transcribed Image Text:Jing's husband Mike has always lived in Canada. He is 67 years old and has a net income of $100,000. Calculate Mike's OAS repayment due to the OAS slawback Minimum Income Recovery Threshold Maximum Income Recovery Threshold $79,845 $129,260 Mike's calculation:
Jing is concerned about having to repay her Old
Age Security (OAS) pension that she receives.
This is very stressful as she is on a very limited
budget. She knows that if her income is over the
minimum threshold amount, that she must
repay 15% of this different through her tax
return due to the OAS clawback. The maximum
monthly OAS pension in 2021 is $635.26. Jing's
net income is estimated at $75,000 for the year.
Jing turned 65 years old on January 1, 2021 and
has been living in Canada for 25 years. She
knows that the amount she will receive is a
partial monthly pension earned at the rate of
1/40th of the maximum monthly OAS pension
for each year of residence in Canada after the
age of 18.
Transcribed Image Text:Jing is concerned about having to repay her Old Age Security (OAS) pension that she receives. This is very stressful as she is on a very limited budget. She knows that if her income is over the minimum threshold amount, that she must repay 15% of this different through her tax return due to the OAS clawback. The maximum monthly OAS pension in 2021 is $635.26. Jing's net income is estimated at $75,000 for the year. Jing turned 65 years old on January 1, 2021 and has been living in Canada for 25 years. She knows that the amount she will receive is a partial monthly pension earned at the rate of 1/40th of the maximum monthly OAS pension for each year of residence in Canada after the age of 18.
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education