GIS FAQ and myths

A farmers market building Photo: Wikimedia Commons, CC BY-SA 3.0.

A snow-covered pine bough over a snowy path Photo: Wikimedia Commons, CC BY-SA 4.0.

Maple syrup bottles and logs in Ontario Photo: Wikimedia Commons, CC BY-SA 4.0.

"If I work part-time, I will lose my GIS."

Myth. The first $5,000 of work income a year is fully exempt, and half of the next $10,000 is exempt. A senior earning $8,000 from part-time work has only $1,500 of it counted. Work only starts to reduce GIS dollar-for-dollar above $15,000 of work income, and even then it reduces it gradually, not all at once.

"GIS is taxable."

Myth, with a footnote. You pay no tax on GIS. But you must report it on your tax return (T4A(OAS) box 21, line 14600), where it is then deducted at line 25000. Reporting it is also what keeps your July renewal alive, so the footnote matters: "not taxable" does not mean "leave it off the return".

"Withdrawing from my TFSA will cut my GIS."

Myth. TFSA withdrawals do not count in the GIS income test at all. The same dollars withdrawn from an RRSP or RRIF would count in full. Where you keep retirement savings can matter more than how much you have saved.

"I should defer OAS to 70 to get more, and GIS will wait for me."

Myth, and an expensive one. GIS cannot be received while OAS is deferred, and deferring OAS does not increase GIS later. A low-income senior who defers OAS gives up both the OAS pension and the GIS supplement for every month of deferral, with no catch-up. If your income is low enough for GIS, deferral is usually the wrong choice — get personal advice before deferring, and do not assume the 0.6%-a-month OAS increase compensates for lost GIS.

"I can collect GIS while living abroad."

Only briefly. GIS stops after six consecutive months outside Canada. OAS has different absence rules, so a snowbird who can keep OAS abroad may still lose GIS. Tell Service Canada before a long absence and ask what it means for each benefit separately.

"I was sponsored years ago, so I can never get GIS."

Not necessarily. The bar lasts for the length of the sponsorship agreement — 20 years for parent and grandparent sponsorships since the 2025 change — and it ends when the agreement ends, unless an exception (sponsor's death, imprisonment, conviction, or bankruptcy) applies sooner. If your agreement has expired, you can qualify like anyone else.

"GIS and the Allowance are the same thing."

Myth. GIS is for people 65 and older who receive OAS. The Allowance is for people 60 to 64 whose spouse receives OAS and GIS. Different ages, different programs, different maximums ($1,138.90 for single GIS versus $1,448.06 for the Allowance, October to December 2026).

"My neighbour gets more GIS than I do, so something is wrong with my payment."

Probably not. GIS depends on marital status, on whether a spouse receives OAS or the Allowance, on CPP and other income, and on whether OAS is full or partial. Two neighbours with the same OAS pension can legitimately receive very different GIS payments. Compare your payment with Service Canada's tables for your own situation, not with someone else's deposit.

A final honesty note. This site gives the Service Canada and Canada.ca position as it stands for October to December 2026. Amounts are re-indexed every quarter, thresholds move with them, and individual decisions turn on individual facts. Before acting on anything here — especially before deferring OAS, making a large RRSP withdrawal, or leaving Canada for months — confirm the current position with Service Canada.

General information only. This page explains the Guaranteed Income Supplement in plain English. It is not legal, financial, or tax advice, and it cannot decide whether you qualify. Only Service Canada can decide a claim. Rates and rules change over time — the figures here are for October to December 2026 unless another period is stated — so always confirm the current position with Service Canada or Canada.ca before you act on it. Contact: hello [at] tapetoolhq.com.