Canadian seniors could be getting hundreds of dollars in government payments before the end of July.
Those 65 years of age and older who qualify for Old Age Security (OAS) could see as much as $700 deposited in their accounts on July 29.
Here’s how OAS works, and how to qualify.
What is OAS?
Old Age Security is a government payment that is given to Canadians who are 65 years of age and older. It does not depend on employment history, only age and residency.OAS payments are considered taxable income. Those receiving money can arrange to have income tax deducted from the payments. Otherwise, it will need to be claimed on your tax return.
Who is eligible?
Canadian citizens and legal residents who meet the age and residency requirements can qualify for OAS payments. Even those who have never worked can still qualify if they are 65 years or older, are a Canadian citizen or legal resident, and have lived in the country for at least 10 years. For Canadians who live outside the country, they must have resided in Canada for at least 20 years since turning 18.How to apply for OAS?
Most Canadians won’t have to apply to receive OAS payments. Service Canada will automatically enrol those who are eligible. If you are enrolled automatically, you will receive a notice from Service Canada.Canadians who qualify but did not receive a notice that they’ve been automatically enrolled may need to submit an application to receive OAS.
What is the maximum benefit amount?
Canadians aged 65 to 74 years and who have a total net annual income below $142,609 can earn the maximum benefit amount of $718. Canadians 75 or older with a net annual income lower than $148,179, could see up to $790 from the federal government.OAS amounts are reviewed four times a year, in January, April, July, and October, and are measured against increases in the cost of living. Payments will not decrease if the cost of living goes down.
Payments increase by 10 percent after turning 75 .
Retroactive payments, for those who qualify and are already 65, can be given for up to 11 months before the application date.
Eligible Canadians can delay receiving OAS payments for up to five years after they turn 65. The benefit of waiting is that monthly benefit payments will be larger.
