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.
When are the GST dates to receive the rebate cheque? For many this is an important question as this helps cover some extras that they need especially during these times. How do I get a GST rebate and when does it come?
If you’re single, the amount from line 23600 of your income tax return, or the amount that it would be if you completed one
If you have a spouse or common-law partner, your net incomes are combined to get your family net income
the number of children under 19 years old that you have registered for the Canada child benefit and the GST/HST credit
The key is that you have to file a tax return to be eligible to receive the rebate. Once you file a tax return, CRA calculates if you are eligible for a GST rebate or not.
When Will I Receive a GST Rebate and How Much?
The Government of Canada’s website states that base on your 2020 tax return, GST payments for the 2021 year will be made on July 5, 2021, October 5, 2021, January 5, 2022 and April 5, 2022. The key here is that you have to had filed your 2020 tax return to be eligible.
Regarding payments, the government’s website states that the amount that someone can get in rebate payments base on the 2020 tax year are as follows:
$456 if you are single
$598 if you are married or have a common-law partner
$157 for each child under the age of 19
If you have filed your 2020 return and if you qualify, you should be receiving a GST cheque anytime. If you have not file your 2020 return, then this would be delayed. Not everyone receives a GST cheque as the key component is income and the more income you have, the less chance you will get a payment. However, there are other factors such as marital status and children under 19 years old. The key is to file your return and let CRA calculate it. This rebate might not seem much but for many, it is a pleasant surprise to receive and in these times, every little bit helps.