How your net income gets calculated for tax and OAS

A lot of people assume net income simply means what is left after tax, but the way the CRA actually defines it matters more than most realize, because that figure is what drives the Old Age Security clawback and several other benefits. Allan uses the tax return itself as a map, walking through the difference between deductions, which lower the income figure before tax is calculated, and tax credits, which trim the tax you owe but do not move that net-income number. He also notes how tax shelters let savings grow without inflating income year to year. Understanding which lever does what is the whole point, because the right deductions can protect benefits that credits cannot. It is a clarifying read for anyone near the OAS threshold trying to keep more of what they have.