Glossary term
OAS recovery tax
OAS recovery tax is the formal tax term behind the common phrase OAS clawback.
Plain meaning
What OAS recovery tax means
When income is above the applicable threshold, part or all of Old Age Security may be recovered through the tax system. In everyday language, this is often called the OAS clawback.
Formula role
How OpenBook uses it
OAS clawback calculators compare the relevant income measure with the published threshold for the benefit period. If income is above the threshold, the calculator applies the recovery-rate assumption and limits the result to the OAS amount being tested.
The estimate depends on the benefit period, income measure, age group, and official thresholds used.
Common wording
Recovery tax and clawback
Recovery tax is the formal term. Clawback is the everyday term many readers use when searching for this calculation. OpenBook may use both terms when that improves clarity.
Primary references
These links give the official tax and benefit context behind this term.