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.