Does investment income affect projected GIS?
Where to find it: TIME MACHINE results → click the year
Yes. GIS calculations consider your taxable income in previous years and your spouse’s if you have one. Taxable investment income is part of that calculation. Interest, dividends and realized capital gains in non-registered accounts add to taxable income. Registered-account withdrawals are taxable, except for TFSA withdrawals and certain other withdrawals when the applicable conditions are met.
TIME MACHINE considers the income used by its GIS calculation, including applicable taxable investment income and taxable withdrawals. Check that Ignore GIS is not selected if you want these benefits calculated. In the detailed year report, review GIS or Allowance alongside investment income, retirement withdrawals and your spouse’s income, if applicable.