Maria, a single retiree in Nova Scotia, is 72. Her total taxable income for the year is $85,000, which includes her RRIF withdrawals and a small company pension. How much will she receive in Old Age Security (OAS) benefits if the maximum annual OAS benefit is $8,400 and the clawback threshold is $86,912?

Question: Maria, a single retiree in Nova Scotia, is 72. Her total taxable income for the year is $85,000, which includes her RRIF withdrawals and a small company pension. How much will she receive in Old Age Security (OAS) benefits if the maximum annual OAS benefit is $8,400 and the clawback threshold is $86,912?

Answer options: ✅ $8,400

• $0
• $4,200
• $2,100

Correct answer: $8,400

Explanation: OAS benefits begin to be reduced (clawed back) when an individual's net income exceeds a certain threshold. Since Maria's income of $85,000 is below the current OAS clawback threshold of $86,912, she will receive the full maximum OAS benefit.