Starting this week, a one time payment for older seniors will be sent out by the Federal government. The amount of this payment is $500.00. This payment is taxable. What are the criteria for receiving this payment?
One Time Payment for Older Seniors – Criteria
The government of Canada’s website lists two criteria for seniors to be eligible for this one time payment. First, the person would have to been born on or before June 30, 1947. Second, they would have to be eligible to receive the Old Age Security pension as of June 2021.
If you have applied for Old Age Security but have not yet been approved, you will receive the one time payment if you are approved for Old Age Security retroactively to June 30, 2021 or earlier.
How Will I Receive My Payment?
The government’s website above says that if you receive your Old Age Security by direct deposit, then the one time payment will be directed deposited to you in the week of August 16, 2021. If you receive your Old Age Security by cheque then you will receive the one time payment by cheque.
Finally, no taxes or deductions will be taken from your one time $500 payment. However, because it is a taxable benefit, you will be sent a tax slip and you will be required to declare this amount on your income tax return for 2021.
The one time payment for older seniors is a nice little boost for them during these difficult times. Many seniors have very little income, so anything extra can go a long way. If you are eligible, make sure that you have applied for Old Age Security to make sure you will receive this payment as this is free money. Actually nothing is really free but this is as free as it can get.
The Canada Recovery Benefits (CRB) are now unavailable to people who have not filed their 2019 and 2020 tax returns. This is according to recent changes to the government of Canada’s website on the criteria of receiving the Canada Recovery Benefits (CRB). This means you need to file your taxes to keep qualifying for the emergency benefit. However there are some exceptions below.
Canada Recovery Benefits Unavailable – Exceptions
A recent news article noted some exceptions to this which are listed below:
A 2019 or 2020 tax return won’t be required if you applied for fewer than 21 periods since September 27, 2020.
You applied for the time period of July 4 to 17, 2021, or during earlier time periods.
If you have been collecting the Canada Recovery Benefits or might be planning on applying for it in the new future, you will need file your taxes. The government has this as one of it’s criteria when you apply. So there is no way around it. However, there are exceptions as mentioned above but it is limited. The government has been hinting at this and now it is here. So now we must adjust.
The government of Canada recently announced that it is extending COVID-19 benefits until October 23, 2021. What are the specific details of this announcement? See below.
Canada Extending COVID-19 Benefits – Canada Emergency Wage Subsidy (CEWS) , Canada Emergency Rent Subsidy (CERS) and Lockdown Support
The Canadian government’s recent news release states that it will extend the eligibility period for these three programs up to October 23, 2021. It will also increase the rate of support that employers and organizations can receive during the period between August 29, 2021 to September 25, 2021. This will be a relief to many employers who are still trying to get their businesses up and running.
The same government news release above also stated that these three programs would be extended until October 23, 2021. Regarding the Canada Recovery Benefit (CRB), the government is extending the maximum number weeks available by four weeks for a total of 54 weeks at a rate of $300.00 per week.
The government also ensures it that the Canada Recovery Benefit (CRB) will be available to ones who have exhausted their Employment Insurance Benefits.
This announcement will come as a relief to many Canadians as there is still uncertainty in the economy due to the pandemic. Will all these benefits end after October 23, 2021? Only time will tell but as seen by this recent announcement, things are still not back to normal. Also, we see that COVID-19 is very resilient and no one knows how bad things could get with the variants. Because of this the government is taking a cautious approach and as we have seen with this announcement, it will adjust accordingly. As a result, these benefits could end or not. We will have to wait and see.
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