In October 2024, eligible Canadian seniors could receive a combined $1,300 through Old Age Security (OAS) and an extra $250 payment intended to help with the rising cost of living.
To qualify, seniors must be 65 or older, meet certain income limits, and be receiving OAS benefits. Here’s a detailed guide on eligibility, how to apply, and what to expect from this October payment.
CRA OAS Dual $1,300 + $250 Extra Payment Explained
The Canadian government supports seniors through the Old Age Security (OAS) and Canada Pension Plan (CPP) programs. In response to increasing living expenses, the government has announced an additional $250 payment for qualifying seniors, which will be issued alongside regular OAS payments in October 2024.
This can provide some seniors with a combined payment of up to $1,300. Below, we explain who qualifies, the distribution date, and how to verify eligibility.
What Is the CRA OAS Dual Payment?
The CRA OAS Dual Payment in October 2024 combines the standard OAS benefit with a special one-time $250 payment to help seniors manage rising costs.
- OAS Payment: The monthly OAS benefit amount is up to $727.67 for those aged 65-74 and up to $800.44 for those aged 75 and older.
- $250 Extra Payment: This additional one-time payment is part of the government’s response to help seniors manage inflation and increased living expenses.
Who Qualifies for the Extra $250 Payment?
To be eligible for the extra $250 payment, seniors must:
- Be 65 years or older.
- Already be receiving OAS payments.
- Be a Canadian citizen or legal resident.
- Meet the required income threshold, as the payment may be reduced or clawed back based on income.
Current Income Thresholds:
- Ages 65 to 74: up to $148,451 annually.
- Ages 75 and older: up to $154,196 annually.
For lower-income seniors, the Guaranteed Income Supplement (GIS) may also add to monthly OAS payments, potentially increasing the total amount.
Steps to Check Eligibility for the CRA OAS Dual $1,300 + $250 Payment
- Confirm Age and Residency
You must be at least 65 and have lived in Canada for 10 years or more since age 18. - Check Income Level
OAS payments are adjusted for seniors with a net income above a certain level. If you’re unsure about your income or need to confirm eligibility, you can check through CRA’s online resources or refer to your latest Notice of Assessment. - Apply if Necessary
If you haven’t yet applied for OAS or CPP, you can do so online through your My Service Canada Account or in person at a Service Canada office. Since processing can take a few weeks, it’s best to apply as soon as you meet the eligibility criteria.
Income Impact on OAS Payments
High-income seniors may see a reduction, or clawback, in their OAS payments based on income. Here’s how it works:
- If your income exceeds the 2024 threshold of $86,912, OAS payments will be reduced by 15 cents for each dollar over this amount.
- This reduction continues up to the maximum threshold, where OAS payments may be fully clawed back.
For example, a senior with an annual income of $100,000 would experience a reduction in OAS payments based on this formula.
Applying for OAS and CPP Benefits
How to Apply for OAS
If you’re eligible for but not yet receiving OAS, you can apply through your My Service Canada Account or submit a paper application. The process will require proof of age, residency, and income.
How to Apply for CPP
You can start receiving CPP benefits as early as age 60. Similar to OAS, applications for CPP can be completed online or in person. CPP payment amounts vary based on an individual’s contribution history.
Frequently Asked Questions (FAQs)
- When will the extra $250 payment be issued?
The additional $250 payment will be issued with regular OAS payments on October 29, 2024. - Can I receive both OAS and CPP?
Yes, you can receive both as long as you meet each program’s eligibility requirements. - What if I’m receiving GIS?
Seniors receiving the Guaranteed Income Supplement (GIS) may still be eligible for the $250 extra payment, depending on their income level. - Is the $250 payment taxable?
Yes, the $250 payment is considered taxable and should be reported when filing taxes.
This October, Canadian seniors who qualify can look forward to a helpful financial boost through the CRA OAS Dual Payment, designed to provide additional support amid the rising cost of living.
