Kim
A new $1,200 tax-free payment is being rolled out in June 2025 to support low-income Canadian seniors dealing with the ongoing cost-of-living challenges.
This special one-time credit is aimed at older adults who rely heavily on government support programs to make ends meet. If you’re over 65 and on a fixed income, you may qualify for this much-needed boost.
What Is the $1,200 CRA Payment?
The $1,200 payment is a one-time financial relief measure created to help low-income seniors offset inflation-related expenses. It complements existing programs like the Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), acting as a targeted response to economic pressures affecting older Canadians.
The payment is non-taxable, meaning you keep every dollar, and it will not impact your eligibility for other government benefits.
Eligibility Criteria for the $1,200 Payment
To receive this benefit, you must meet the following conditions:
- Be 65 years of age or older as of June 2025
- Be a Canadian resident
- Currently receiving Old Age Security (OAS)
- Fall within a low-income bracket based on net income thresholds
Income Thresholds for Eligibility
| Marital Status | Annual Income Limit |
|---|---|
| Single, divorced, or widowed | Less than $22,056 |
| Married/Common-law (both receive OAS) | Less than $29,136 |
| Married/Common-law (only one receives OAS) | Less than $52,848 |
These income limits are based on the most recent tax year on file. Filing your tax return is required for eligibility assessment.
Payment Date and Disbursement Method
The $1,200 CRA payment is scheduled to be disbursed in June 2025. Seniors will automatically receive the funds if they meet the eligibility criteria. No separate application is needed.
How You’ll Receive the Payment:
- Direct Deposit: If your OAS is deposited directly into your bank, this amount will follow the same method.
- Mailed Cheque: If you usually receive benefits by mail, expect your cheque to arrive around the same time.
To ensure timely delivery, make sure your banking and mailing information are accurate and updated.
Required Actions Before You Can Receive It
While the payment is automatic, there are two critical actions that seniors must take to avoid delays or disqualification:
- File Your 2024 Tax Return
Even if you have little to no income, you must file your return. This allows the CRA to assess whether your income qualifies you for the benefit. - Update Your Direct Deposit Information
Confirm that your bank details or mailing address are current. Outdated information could delay payment or result in a lost cheque.
Additional Support You May Be Eligible For
The $1,200 payment is part of a broader support structure available for seniors:
- Old Age Security (OAS): Monthly pension for Canadians aged 65+.
- Guaranteed Income Supplement (GIS): Extra monthly income for low-income seniors receiving OAS.
- Allowance & Survivor Allowance: Benefits for low-income individuals aged 60–64 with spouses who are eligible for GIS, or who are widowed.
These programs work together to provide long-term financial stability, and the $1,200 payment is an added temporary cushion.
The $1,200 CRA payment arriving in June 2025 offers much-needed relief to low-income Canadian seniors. It’s automatic, tax-free, and doesn’t impact other benefits—but only if you’ve filed your taxes and meet the criteria.
This one-time boost is a lifeline during a time of high inflation and economic uncertainty. File your return, verify your payment details, and claim what’s rightfully yours—before it’s too late.
FAQs
Do I need to apply for the $1,200 CRA senior payment?
No. If you meet the criteria and have filed your 2024 taxes, the CRA will issue the payment automatically. No application is required.
What if I haven’t filed my 2024 tax return yet?
If your return hasn’t been assessed, the CRA cannot determine your eligibility. File as soon as possible to ensure you receive your payment.
Will this payment affect my GIS or other benefits?
No. The $1,200 payment is non-taxable and will not affect your current eligibility for GIS, OAS, or other federal income-tested benefits.