If your income exceeds GIS limits, your GIS payment can be reduced or stop for the payment year. This is usually a recalculation issue, not a permanent loss.
How GIS is recalculated
- Service Canada uses prior-year income from tax returns.
- Higher reported income lowers GIS entitlement.
- Next cycle can restore GIS if income declines.
Income sources that can affect GIS
- RRSP/RRIF withdrawals.
- Employment or self-employment income.
- Certain pension and investment income.
How to reduce surprises
- Plan withdrawal timing carefully.
- Estimate GIS impact before large taxable withdrawals.
- File taxes on time every year.