CRA Canada: New changes in April will affect your wallet!

Toronto CPA Service
19 hours ago
3 min read

Attention seniors receiving OAS (Old Age Security) and GIS (Income Supplement)! Starting April 1st, several new changes from the CRA that directly impact your monthly income have already taken effect or will soon be in effect. Meanwhile, a crucial tax filing deadline, April 30th, is fast approaching, directly affecting your July GIS payment!

I've clearly outlined these key changes and the necessary actions for you. I've extracted the core points for you.

📌 CRA New Change 1: Quarterly OAS Amount Update (Effective April 1st)

Seniors aged 65-74: Up to $742.31 per month.
Seniors aged 75 and over: up to $816.54 per month
Effective date: These new amounts will be reflected in your payment on April 28.
How to verify: Log in to your Service Canada account and view the payment details.

⚠️ CRA New Change 2: GIS "Suspension Trap" - Filing taxes on April 30th is crucial!

Key rule: Your GIS eligibility and amount are based on your income from the previous year. However, if you do not file your 2025 tax return by April 30, the CRA will be unable to calculate your GIS amount for the period from July 2026 to June 2027.
Serious consequences: Approximately 4% of seniors lose their GIS income each year due to failure to file taxes on time, even if it's just a brief interruption. Once paused, restarting can take months, during which time you will have no GIS income.
Your Actions: Check immediately if you've filed your 2025 tax return! If not, don't wait any longer. Even if your income is low and you don't owe any taxes, be sure to file your taxes by April 30th to protect your GIS (Garbage, Income, and Gems).

📉 New CRA Change 3: "Income Offset" Rule for CPP and GIS

Important concept: For every additional $1 you receive from your CPP (Canada Pension Plan), your GIS (Gas Income Guarantee) will decrease by $0.50.
Strategic Implications: This reminds us that when to start receiving CPP is a decision that requires careful consideration. While early CPP payments may result in lower monthly amounts, the actual net benefit may be lower due to reduced GIS (Genomic Statistical Index). Delaying CPP payments (until age 70) offers higher monthly amounts, but its long-term impact on GIS needs to be assessed. Consulting a professional is recommended for this decision.

🛒 Clarification Regarding "Grocery and Essentials Benefits" (CGEB)

Key information: This one-time subsidy based on Bill C-19 (up to $267 for single seniors, which can reach $950 with adjustments to continuing benefits) will not begin in April.
The truth is: the official distribution window is "Spring 2026, no later than June." Please refer to your CRA account for the specific date; do not believe unverified dates.

🔍 Other Important Reminders

OAS Clawback Threshold: The 2026 clawback threshold is 93,454. If your net income (line 23,400 on your tax return) exceeds this amount, the excess will be deducted from your OAS at a rate of 15%. Note that calculation methods for dividends, capital gains, etc., may amplify income and increase the risk of clawback.

Tax credit for home-based elder care: When filing your 2025 taxes, you can claim a credit of up to $3,000 for home renovation costs (such as installing handrails or accessibility features). This is the last opportunity to claim this expense on your 2025 tax return.

✅ Your 7-Step Action Checklist (Complete by April 30th)

Check your 2025 tax return status: If you haven't filed, file it immediately.
Verify T4A form: Confirm that the revenue amounts for OAS, CPP, etc., are correct.
Log in to your CRA account: Check for unread messages.
Set up direct deposit: Ensure your welfare payments arrive as quickly as possible.
Assess the risk of OAS recovery: If income is close to the threshold, plan ahead.
Check GIS status: Ensure there is no interruption due to tax evasion.
Consider the timing of CPP payouts: assess the long-term impact on GIS.

If you encounter any tax issues, you can consult a certified CPA accountant in a timely manner to strive for the maximum tax return!