CALGARY – A Calgary senior is receiving 6 months of old age payments back after a Global News investigation.
In July, Service Canada cut $400/month from Clara Fergusson’s Guaranteed Income Supplement.
It happened after her husband died and she claimed his $2,500 CPP Death Benefit on her taxes instead of the taxes for his estate.
That boosted her income to a higher level leading to a reduction in old age security.
“I had to dig into savings which is something I just don’t like to do because I want to leave something for my kids when I’m not here anymore. I think every parent feels the same way”, said Fergusson.
Global News asked Service Canada to review her file and they discovered a mistake on her tax form.
In a statement they said, “upon review of Ms. Fergusson’s account, it was discovered that the one-time, lump sum CPP death benefit in the amount of $2,500 was reported incorrectly by the client to CRA as part of the CPP pension amount. As a result, Ms. Fergusson’s GIS entitlement was calculated based on incorrect income which resulted in her GIS payment being reduced.”
READ MORE: Take a look at your taxes before 2016, experts say
Tax Analyst Cleo Hamel said it appears the Death Benefit amount wasn’t entered in the right box on her tax form and that led to the confusion.
“The $2,500 should be listed in there as a Death Benefit and, had it been entered on the tax return, we would have probably not had this situation happen at all,” said Hamel.
Service Canada has now corrected the tax form, reversed her Income Supplement payment and is refunding the $2,400 she lost since July.
It’s a big relief for Fergusson.
“I’m very happy. I couldn’t be happier. Yes, it’s a wonderful Christmas gift.”
Comments