If Parminder's OAS benefits are subject to a clawback, how much of the benefit would be affected?

When discussing Old Age Security (OAS) benefits, it's essential to understand how the clawback mechanism operates. The OAS clawback, formally known as the OAS pension recovery tax, reduces the amount that higher-income seniors receive. Specifically, if an individual's income exceeds a certain threshold, OAS benefits are gradually reduced by $0.15 for every dollar earned over that threshold.

The amount impacted by the clawback is influenced by Parminder's reported income and the specific threshold for clawback eligibility. The choice indicating $2,567.10 likely represents the amount that Parminder's benefits would be reduced due to the clawback, which aligns with typical calculations based on the income threshold and the reduction rate.

In this context, the other amounts listed do not accurately reflect the typical clawback calculation or the income threshold associated with OAS benefits, making the selection of $2,567.10 the appropriate choice for this scenario. Understanding these figures provides clarity on how income impacts government benefit programs like OAS and how clawbacks are designed to ensure that those with higher incomes receive less support.