What factor is considered when calculating an OAS clawback for individuals with income over the threshold?

The calculation of the Old Age Security (OAS) clawback is based on income exceeding a specific threshold, with particular emphasis on how much income over the threshold contributes to the clawback amount. For every dollar of income that exceeds this threshold, a specified percentage of the amount above the threshold is deducted from the OAS benefits received.

When the income of an individual surpasses the established limit, the clawback mechanism is triggered, where 50% of the income that exceeds the threshold is subtracted from the total OAS benefits due. This structured approach makes it clear that the more an individual earns beyond the set threshold, the more significant the reduction in their OAS benefits.

In contrast, the other choices do not accurately represent how the clawback is calculated. For instance, calculating clawback based solely on reported investment income or only on salary would not reflect the comprehensive income assessment required. While total income and different sources are considered in determining eligibility and the extent of clawback, the proper method hinges specifically on the percentage of income exceeding the threshold.