November 2019 – Avoid the Old Age Security (OAS) Clawback. In this low interest rate environment everyone is anxious for yield. However, after age 65, regular dividend income can be a seniors worst enemy when it comes to the dreaded OAS clawback. As with other government benefits and entitlements, OAS is income tested using the grossed up amount of your dividend. Even though you get a tax credit to offset tax on the higher grossed up amount, you may lose all or some of your OAS because of how the overstated dividend income is reported on your personal tax return. While “income” in the form of dividends and interest impact OAS, distributions from corporate class funds and Return of Capital from T Class do not. If you are investing outside of a registered plan (RRSP, RRIF, TFSA, etc.), the impact of taxes on your investments is an important concern. You can enhance the tax efficiency of your investments with Corporate Class. As always, get professional advice to see if this income solution is right for your situation.