More money for seniors?

Mrmarvingardens
Board Meister
Posts: 487
Joined: Jan 28th, 2009, 6:50 pm

More money for seniors?

Post by Mrmarvingardens »

The federal government letter says seniors over 75 are to receive 5 hundred dollars August 16 which is a "top up" to their Old Age Security payment until a 10 per cent rise takes effect next year.
Now, here is the mystery.
Old Age Security payments are not taxable.
So, why does the letter state the $5 hundred dollars is taxable, and must be declared on the 2021 Income Tax Return?
Also, if a person is receiving an Income Supplement, based on income, it could result in a clawback.
Do you ever get the impression governments don't think things through?
User avatar
Urban Cowboy
Guru
Posts: 7799
Joined: Apr 27th, 2013, 3:47 pm

Re: More money for seniors?

Post by Urban Cowboy »

Mrmarvingardens wrote: Aug 10th, 2021, 11:17 am The federal government letter says seniors over 75 are to receive 5 hundred dollars August 16 which is a "top up" to their Old Age Security payment until a 10 per cent rise takes effect next year.
Now, here is the mystery.
Old Age Security payments are not taxable.
So, why does the letter state the $5 hundred dollars is taxable, and must be declared on the 2021 Income Tax Return?
Also, if a person is receiving an Income Supplement, based on income, it could result in a clawback.
Do you ever get the impression governments don't think things through?
Where on earth did you get that notion from? :135:

They most definitely ARE taxable. :smt045
“We isolate now so when we gather again, no one is missing" - Unknown
User avatar
oneh2obabe
feistres Goruchaf y Bwrdd
Posts: 90977
Joined: Nov 23rd, 2007, 8:19 am

Re: More money for seniors?

Post by oneh2obabe »

The only government pension benefit that isn't taxed is the GIS.
OAS payments are included in your taxable income for the year and taxed based on your income tax bracket.

At the end of the tax year, you will receive a T4A (OAS) tax slip from Service Canada that shows how much OAS pension you received and how much taxes were deducted.
https://www.savvynewcanadians.com/is-oas-taxable/
You do not have to pay taxes on your Guaranteed Income Supplement payment. You must file your taxes by April 30 every year to avoid any disruption of payments.
https://www.canada.ca/en/services/benef ... iving.html
CPP retirement pension is considered to be taxable income.

Taxes are not automatically deducted and depending on your overall income, you may owe CRA at tax time.
https://www.savvynewcanadians.com/is-cpp-taxable/
Dance as if no one's watching, sing as if no one's listening, and live everyday as if it were your last.

Life is not about waiting for the storm to pass. It's about learning to dance in the rain.
User avatar
normaM
Admiral HMS Castanet
Posts: 30581
Joined: Sep 18th, 2007, 7:28 am

Re: More money for seniors?

Post by normaM »

I feel 75 today so hope I get a cheque
Tips for surviving the heat wave.
Drink lots of water
Don't test me
User avatar
PoplarSoul
Grand Pooh-bah
Posts: 2513
Joined: Apr 23rd, 2021, 12:27 pm

Re: More money for seniors?

Post by PoplarSoul »

Mrmarvingardens wrote: Aug 10th, 2021, 11:17 am The federal government letter says seniors over 75 are to receive 5 hundred dollars August 16 which is a "top up" to their Old Age Security payment until a 10 per cent rise takes effect next year.
Link:
https://financialpost.com/personal-fina ... ng-months
"The only way to make sense out of change is to plunge into it, move with it, and join the dance."
Alan Watts
User avatar
Gone_Fishin
Guru
Posts: 8738
Joined: Sep 6th, 2006, 7:43 am

Re: More money for seniors?

Post by Gone_Fishin »

Mrmarvingardens wrote: Aug 10th, 2021, 11:17 am Do you ever get the impression governments don't think things through?
The Trudeau government hasn't the mental capacity to think in the first place.
ΜΟΛΩΝ ΛΑΒΕ

"Whatever their filthy hands touch also catches the Niberal pox." - Skunky Girl, 2022
Septuagenarian
Übergod
Posts: 1517
Joined: Jan 1st, 2021, 7:49 am

Re: More money for seniors?

Post by Septuagenarian »

Self removed.
Last edited by Septuagenarian on Sep 4th, 2021, 11:46 am, edited 1 time in total.
User avatar
The Green Barbarian
Insanely Prolific
Posts: 67845
Joined: Sep 16th, 2010, 9:13 am

Re: More money for seniors?

Post by The Green Barbarian »

Urban Cowboy wrote: Aug 10th, 2021, 12:24 pm
Where on earth did you get that notion from? :135:

They most definitely ARE taxable. :smt045
Talking to various seniors who are eligible for this who are also complaining, what I believe the issue is that tax is being deducted at source on these $500 vote-buying cheques from the Liberals, which seniors aren't used to. They are used to getting 100% of their cheque upfront, and dealing with whatever tax they have to pay later. I'm not saying that this is true, just what seniors are telling me. The issue here though is the Liberals are taking an obvious vote-buying with taxpayer money scam and having it blow up in their faces, by deducting tax. If you want to buy off seniors with tax money go ahead, but do it in a way that doesn't p--s them off. Dumb-dumb Liberals!!
Justin Trudeau- racist, elitist, liar. What a sick piece of garbage.

"Mr. Trudeau, you are a disgrace to any democracy. Please spare us your presence" - European Union addressing the sad sack of **** that is currently our PM.
User avatar
oneh2obabe
feistres Goruchaf y Bwrdd
Posts: 90977
Joined: Nov 23rd, 2007, 8:19 am

Re: More money for seniors?

Post by oneh2obabe »

^^^Unless the senior has instructed the government to deduct taxes each month from their pension cheque(s), no taxes or deductions will be taken from the $500 payment. Even if taxes are being deducted monthly, it appears this one-time payment will be for the full amount.

https://www.canada.ca/en/services/benef ... niors.html
Dance as if no one's watching, sing as if no one's listening, and live everyday as if it were your last.

Life is not about waiting for the storm to pass. It's about learning to dance in the rain.
User avatar
The Green Barbarian
Insanely Prolific
Posts: 67845
Joined: Sep 16th, 2010, 9:13 am

Re: More money for seniors?

Post by The Green Barbarian »

oneh2obabe wrote: Aug 11th, 2021, 5:40 pm ^^^Unless the senior has instructed the government to deduct taxes each month from their pension cheque(s), no taxes or deductions will be taken from the $500 payment.

https://www.canada.ca/en/services/benef ... niors.html
OK thank you. As I said, I'm just going off of what I've been told, not saying it's true. What's funny is that even if something isn't true, if it goes through the senior email chain they all just believe it. Anyway, thanks for the info.
Justin Trudeau- racist, elitist, liar. What a sick piece of garbage.

"Mr. Trudeau, you are a disgrace to any democracy. Please spare us your presence" - European Union addressing the sad sack of **** that is currently our PM.
User avatar
crookedmember
Banned
Posts: 2872
Joined: Jan 8th, 2011, 9:43 am

Re: More money for seniors?

Post by crookedmember »

Mrmarvingardens wrote: Aug 10th, 2021, 11:17 am
Do you ever get the impression governments don't think things through?
Canada has an extremely competent public service and they do think things through.

Be happy the Liberals are giving you a raise, because the Conservatives would be more interested in giving the wealthy tax cuts.
All posts 100% moderator approved!
User avatar
The Green Barbarian
Insanely Prolific
Posts: 67845
Joined: Sep 16th, 2010, 9:13 am

Re: More money for seniors?

Post by The Green Barbarian »

crookedmember wrote: Aug 11th, 2021, 5:56 pm

Canada has an extremely competent public service and they do think things through.
LOL - talk about Liberal propaganda. While the public service is what it is, those elected above them right now are complete brain-dead imbeciles. Which is why we have to punt these boneheads out of power.
Be happy the Liberals are giving you a raise,
With taxpayers money. Yes, be happy the Liberals are buying your vote with your grandchildren's money. Great idea! :up:
because the Conservatives would be more interested in giving the wealthy tax cuts.
No they wouldn't. The Conservatives would only be interested in looking out for these peoples' grandchildren, instead of selling them down the river like the scumbag Liberals are doing right now.
Justin Trudeau- racist, elitist, liar. What a sick piece of garbage.

"Mr. Trudeau, you are a disgrace to any democracy. Please spare us your presence" - European Union addressing the sad sack of **** that is currently our PM.
Even Steven
Guru
Posts: 6681
Joined: Mar 24th, 2015, 7:20 pm

Re: More money for seniors?

Post by Even Steven »

Why do seniors always get extra help?

They had all their lives to prepare for rainy days like they always preach.
User avatar
Hurtlander
Walks on Forum Water
Posts: 10983
Joined: Jun 23rd, 2013, 10:48 am

Re: More money for seniors?

Post by Hurtlander »

And whose brilliant idea was it that determined only seniors 75 and older are worthy of extra $500.00 bucks ? Are there no struggling 73 year olds ? Or 67 year olds ?
Keep on Truckin
User avatar
oneh2obabe
feistres Goruchaf y Bwrdd
Posts: 90977
Joined: Nov 23rd, 2007, 8:19 am

Re: More money for seniors?

Post by oneh2obabe »

You're going to love the reasons behind this fiasco. According to the government, seniors 74 years of age and younger are more likely to be working part-time thereby not requiring the one-time payment or the scheduled 10% increase to the pension starting in 2022. According to the original blurb, the government said 34% of seniors 74 years of age were more than likely working part-time so didn't need the increase.

According to the government, seniors 75 years of age and older, if employed, earn roughly $750.00 annually so the "senior" 3.3M pensioners born on or before June 30th, 1947 need the one-time payment and increased pension to cover costs - heat, hydro, health care and so on. Out of luck if you were born on or after July 1st, 1947.

Instead of creating two separate classes of seniors, the government should have increased the pensions of all seniors by 5-7% without offering the additional one-time payment. And the BS about increased costs for seniors 75 years of age and older is just that - BS - don't tell me all seniors don't see the same increase in heat, housing, hydro, etc.
Dance as if no one's watching, sing as if no one's listening, and live everyday as if it were your last.

Life is not about waiting for the storm to pass. It's about learning to dance in the rain.

Return to “Canada”