CHRIS IN THE NEWS: For seniors, poor, there are tax savings

From the Hamilton Spectator

By Tom Cooper

Ahh April: Melting snow, spring showers, tax time. It's funny how all the imagery this month revolves around us getting soaked in one way or another.

A quick peek at the calendar reveals a procrastinator's dread -- there's now just two weeks left until the deadline for filing income tax returns.

The government certainly won't let us forget that it is time to pay the piper. Of course, when it is the other way around and they owe us money, government departments often aren't quite as forthcoming with information.

Thousands of individuals and families never find out about legitimate benefits for which they could qualify. It's not like there is a concerted effort to withhold information, but the senior levels of government often times don't actively publicize the income supports that might be available.

As one example, Service Canada -- the federal department responsible for many income support programs -- has eliminated its rank of specialists who previously were responsible for helping people manoeuvre through the complexities of the Canada Pension Plan or retirement income support systems. Hamilton Mountain MP Chris Charlton suggested it "particularly impacts senior women, who often were stay-at-home moms and aren't aware of their survivor entitlements from their spouse".

Those who could benefit most from special government programs -- low-income families, seniors and persons with disabilities -- are often the last to hear about what's available. For those groups, a little extra assistance could make a very big difference to help make the move out of poverty.

Locally, community advocates, the city's community services department and some politicians are trying to make the public more aware of what's available to help ease the burdens many vulnerable populations face.

One deadline is fast approaching. Last year, as part of the 2007 pre-election poverty budget, the provincial Liberals announced the creation of the Ontario Child Benefit (OCB). Those cheques will start to be issued to low-income families with kids this July. According to the provincial government, about 460,000 families could be eligible to receive up to $600 per child annually. The catch is that in order for families to access the benefit, they must file their tax return by April 30 and must register for the federal Canada Child Tax Benefit.

Some families who don't owe money at tax time or others who aren't required to file a return could potentially miss out. Not filing could really impact families in receipt of social assistance.

Rates are being restructured (in other words, lowered) to incorporate the higher OCB amount; as a result, families that don't file returns could see a reduction in their total benefits.

For seniors, the Guaranteed Income Supplement (GIS) has the potential to help ease financial hardships. It was this city's seniors who helped build our community, but it is a travesty that 16,000 of Hamilton's citizens 65 and over now live in poverty. Hamilton's Income Security Working Group in partnership with the Council on Aging and St. Matthew's House have been actively trying to make seniors aware of the Guaranteed Income Supplement for the last couple of years. They have had a lot of success in raising awareness and promoting free income tax clinics for seniors, but indications are many seniors are still unaware that they may be eligible for the benefit.

The GIS adds additional money on top of the Old Age Security benefit for seniors with no other source of income. Last year, figures showed "an average payout of $411 for a qualifying single senior and $257 for a qualifying married senior." Seniors simply need to call 1-800-277-9914 to apply, and again they must file a tax return.

Last but not least, the Disability Tax Credit, is another one of those hidden "entitlements." Charlton, along with other local MPs, has vigorously publicized the benefit to constituents noting, "Anyone who uses a cane, walker or wheelchair (or has any one of eight other disabilities) and who has reported an income on line 435 of their income tax return is eligible".

There are a number of free income tax clinics available to low-income residents in Hamilton. Local MPs' offices may be able to help too. Keep in mind the old lottery advertising slogan "you can't win if you don't play."

Likewise, "If you don't file, your benefits won't compile."

Freelance columnist Tom Cooper lives in Dundas with his family.

He is a member of Hamilton's Roundtable for Poverty Reduction.

TAX HELP

A list of free income tax clinics in Hamilton is available on the Canada Revenue Agency website:

http://www.cra-arc.gc.ca/tax/individuals/ volunteer/clinics/hamilton-on-e.html