Canadian seniors facing inflation are getting a much-needed boost. The Canada Revenue Agency (CRA) announced a special $1,200 relief payment to help eligible seniors combat rising costs. This one-time deposit is for seniors who already receive Old Age Security (OAS) and meet specific income requirements.
Why This Payment Matters
With inflation driving up the cost of essentials, many seniors on fixed incomes are struggling. This $1,200 deposit aims to ease some of that pressure, helping with costs like groceries, utilities, and healthcare.
Who Qualifies for the Extra $1,200?
Not every senior will qualify, but here’s a breakdown:
| Requirement | Details |
|---|---|
| Age | Must be 65 or older |
| Residency | Must be a Canadian citizen or resident |
| Income | Considered low-income (specific thresholds apply) |
| Current Benefits | Already receiving OAS and/or CPP |
| Tax Status | Filed taxes in recent years |
Essentially, seniors already receiving Old Age Security and those with a demonstrated need due to low income are prioritized.
When and How Will It Be Paid?
Eligible seniors don’t need to apply for this extra deposit. The CRA will automatically issue the payment directly to their bank accounts. The deposit will arrive in 2024, with two scheduled installments:
- First Installment – Early 2024
- Second Installment – Mid-2024
Each payment of $600 will be credited separately from regular OAS deposits, so it’s easy to identify in your bank statement.
How to Make the Most of This Support
The government is providing this $1,200 relief, but seniors should also explore ways to optimize their OAS benefits:
- Delayed OAS Payments: Waiting to claim OAS until after 65 can increase monthly payments.
- Guaranteed Income Supplement (GIS): Low-income seniors can apply for GIS to add to their income.
- Managing the OAS Clawback: High-income seniors may experience a reduction in benefits. Budgeting around this can help retain more income.
Why Tax Filing Is Important
If you haven’t filed taxes in recent years, you may miss out on this deposit. Filing taxes ensures the CRA has the information needed to confirm eligibility for benefits like OAS, GIS, and more. Even if you don’t owe taxes, filing is key to keeping up with government support.
FAQs
1. Do I need to apply for this payment?
No, if you’re eligible, the CRA will automatically deposit the payment into your account.
2. When will the payments be made?
The first installment is expected in early 2024, with the second installment around mid-year.
3. What if I don’t receive the payment?
If you meet the criteria but don’t see the payment, check with CRA to confirm your eligibility and ensure your tax information is up to date.
This extra $1,200 aims to bring a bit more comfort to Canadian seniors, helping them cover essentials in a time of financial strain. It’s a helpful step forward for those in need, providing support for day-to-day expenses so they can enjoy more peace of mind through 2024.
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