The Federal Government has give $300 to all seniors who are eligible for the Old Age Security Pension. This money is free of income tax and will not have to be reported on any income tax returns. The purpose is to assist those Seniors who are being financially burdened by Covid-19.
Although this money will be helpful for the many who have incurred additional expenses or loss of income due to the pandemic, there are many others who are saving money at this time and feel that they should not be dipping into taxpayers' money.
For those who do not need this $300 windfall, there is an opportunity to donate it to a registered charity, such as our local food bank. www.richmondhillcommunityfoodbank.ca
Such a donation will get the donor an income tax receipt which will be worth a percentage of the $300 that is equal to the donor’s incremental tax rate. For many, this amount would be approximately $100. For those who may still feel a little guilty about pocketing the $100, they could donate $400 and break even, more or less.
If you are a recipient of this $300, please consider this opportunity for a win-win, and to feel good about helping your community.
