Question Period Note: One-Time Tax Free Payment For Seniors

What is the Government of Canada doing to support seniors affected by increased costs caused by the pandemic?

• To support seniors, many of whom have experienced increased costs as a result of the COVID-19 pandemic, Service Canada introduced one-time payment seniors. This provided a one-time, non-taxable and non-reportable payment of $300 for seniors eligible for the OAS pension, along with an additional $200 for seniors eligible for the GIS.
• In July 2020, approximately 6.7 million individuals received the One-Time Payment for seniors totalling $2.45 billion. If an individual became entitled to OAS pension or GIC retroactively to June 2020 (or earlier), the payment was issued by the end of September 2020.
• Canadians did not have to apply for the One-Time Payment for seniors; however, individuals were only eligible for the one-time payment if they were eligible for OAS or GIS as of June 2020 and in receipt of the benefit by
• Since the announcement of the One-Time Payment for seniors in May 2020, the Department prioritized processing applications to ensure the maximum number of One-Time Payment recipients. The only exceptions would be in situations where individuals’ eligibility for OAS or GIS could not be confirmed by September 2020. The legal authority to issue the one-time payment expired as of September 30, 2020

In response to the COVID-19 pandemic, the federal government has provided a one-time payment for seniors to help them cover increased costs caused by the pandemic.

Individuals were eligible for the One-Time Payment if they were in receipt of the OAS pension or an income-tested benefit in June 2020. An application was not required to receive the payment.
• OAS pension recipients received $300. This includes non-resident and partial pension recipients.
• Guaranteed Income Supplement (GIS) recipients received an additional $200 (for a total payment of $500).
• Allowance and Allowance for the Survivor recipients received $500.

Domestic One-Time Payments were issued the week of July 6th, 2020 while foreign payments were issued during the week of July 16th, 2020. Delays were expected for cheques, given international postal disruptions.

If an individual became entitled to an OAS pension or income-tested benefit retroactively to June 2020 (or earlier), the payment was issued in September 2020. The One-Time Payment can only be granted retroactively if the client’s application and all relevant documents were submitted and processed by September 11, 2020.

The one-time payment was issued in the same manner as the recipient’s OAS monthly benefits, but was sent as a separate deposit or cheque. Recipients of the OAS pension and the GIS who received payments by cheque were encouraged to sign up for direct deposit to avoid payment delivery delays.

The payment is not considered as income. No taxes will be withheld, no tax slip will be issued, and the individual does not need to report the payment on their 2020 tax return.

• In May 2020, the Government of Canada announced a one-time tax-free payment for seniors to respond to the effects of COVID-19.
• This benefit provided a non-taxable payment of $300 for seniors eligible for the OAS pension, along with an additional $200 for seniors eligible for the GIS, to support vulnerable Canadians, and to help them cover increased costs caused by COVID-19.
• Les personnes qui n’étaient pas admissibles à une pension de la SV ou à une prestation fondée sur le revenu en juin 2020, mais qui étaient admissibles seulement en juillet 2020 ou après, ne recevront pas le paiement.