As per Canada Revenue Agency (CRA): The one-time payment for older seniors is a taxable benefit. Service Canada will send you the required tax slip. You will need to declare this payment when you file your Income Tax and Benefit Return.
Furthermore, If you received benefits issued by the CRA in 2021, an information slip will be mailed to you by the end of February 2022.
I entered the $500. payment on Line 205 of T4A of my husband my returns I and got the message "Locked items require an upgrade on the next page". There is nothing on the next page and the $500. is not included in my and my husband's total income. I don't understand why the items would be locked and can't figure how to get the amount entered on each of our returns. This is very frustrating. How do I resolve this?