Social Assistance recipients
Before you start
Social assistance payments are paid to individuals to offset the cost of necessities of life such as food, clothing and shelter requirements. These payments are usually made to:
- individuals
- impaired individuals in nursing homes or similar accommodations
- adults 65 years and older whether or not they live in nursing homes or similar accommodations
Although these payments are not taxable, it is still important to report them on the income tax return. These payments are used to calculate certain benefit entitlements. These benefits include:
- Old Age Security (OAS) Supplement
- the goods and services tax/harmonized sales tax credit (GST/HST)
- the Canada Child Benefit (CCB)
- provincial or territorial tax credits
- non-refundable tax credits
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Need to know
Reporting social assistance payments
As seen below, social assistance payments are reported in box 11 of the T5007 Statement of Benefits slip.
Text version
T5007 – Statement of Benefits
Protected B
Box 11: Social assistance payments or provincial or territorial supplements are highlighted
When completing the individual’s income tax return, claim the amount from box 11 of the T5007 on line 14500. This amount will be added to their net income, which will determine their eligibility for the GST/HST tax credit, the CCB, as well as provincial benefits.
Since these payments are not taxable, you can claim a deduction on line 25000 for the social assistance payments you entered on line 14500. In this case, the tax software will automatically deduct it for you.
Suppose the individual lived with their spouse or common-law partner when the social assistance payments were received. In that case, the spouse or common-law partner with the higher net income (on line 23600 - Net income) must report the social assistance payments, no matter whose name is on the slip. For this reporting requirement, the CRA takes into account the individual’s marital status.
If the amount is the same for the individual and the spouse or common-law partner, the person named on the T5007 slip has to report it.
Social assistance payments from a band council
For information on how to report social assistance payments from a band council see Indigenous Peoples.
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Screen-by-screen instructions
Disclaimer
This training uses screenshots taken from prior versions of the UFile CVITP software. Consequently, the images may differ slightly from the current version of UFile CVITP. The content is accurate, and generally, the only difference will be the tax year being referenced. Should the current year’s software contain any significant changes, a new screenshot will be published as soon as possible.
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Text version
UFile screen
Under Interview tab
Family Head sub-tab
Interview setup is highlighted
Social assistance, worker’s compensation (T5007/RL-5) is highlighted
Next is highlighted
Interview setup
- Select the Interview setup from the left side menu
- Check the box next to Social assistance, worker’s compensation (T5007/RL-5) from the Employment and other benefits section
- Click Next
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Social assistance, worker’s compensation topic
Workers’ compensation benefits, social assistance page
Plus sign is highlighted next to T5007-Workers’ compensation benefits, social assistance, etc. (federal lines 14400, 14500, 14600)
Workers' compensation benefits, social assistance
- Click the + sign next to T5007- Worker’s compensation benefits, social assistance, etc. (federal lines 14400, 14500, 14600)
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T5007 benefits topic
T5007 – Statement of benefits page
Box 11 – social assistance payments or provincial or territorial supplements is highlighted
T5007 – Statement of benefits
- Enter the amount from the T5007 – Statement of benefits in Box 11 - social assistance payments or provincial or territorial supplements
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T5007 benefits topic
T5007 – Statement of benefits page
Did you live with your spouse or common-law partner when you received the social assistance benefits? is highlighted
Yes and no are highlighted from the dropdown menu
T5007 – Statement of benefits
- Answer yes or no to the question Did you live with your spouse or common-law partner when you received the social assistance benefits?
Note: if yes was selected, an additional question will ask you to Select the person whose name appears on the slip.
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Example: Couple receiving social assistance
Instructions: Practice entering information into the mock profile
Open the UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.), and points to remember sections provided in the example to enter all the necessary information. Once completed, compare your results with the solution provided.
Disclaimer
Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.
Background information Name Nathan Kearns Social insurance number (SIN) 000 000 000 Address 123 Main street
City, Province X0X 0X0
Date of birth September 21, 1977 Marital status Married to:
Sophia Kearns on June 7, 1999
SIN: 000 000 000
DOB: May 16, 1980
Slips required:
- T5007 – Statement of Benefits (for Nathan)
- T5 – Statement of Investment Income (for Nathan)
- T5007 – Statement of Benefits (for Sophia)
Points to remember:
- For couples receiving social assistance payments, the individual with the higher net income must report all of these payments. (This calculation does not include child care expenses or social benefit payments)
- since Nathan’s net income before the social assistance payments is $12 and Sophia’s is $0, UFile will automatically report both Nathan’s and Sophia’s social assistance payments on Nathan’s return
- When completing the T5007 benefits section for Nathan, answer Yes to the question Did you live with your spouse or common-law partner when you received the social assistance benefits?
- choose Family Head when you Select the person whose name appears on the slip
- select Original for the question Is this an amended slip? unless the T5007 has been amended. If it has been amended, select Federal amended
- follow the above when completing the T5007 benefits section for Sophia, except choose Spouse of family head when you Select the person whose name appears on the slip
- To report the T5 slip for Nathan, under the Interview setup, check the box next to Interest, investment income and carrying charges/interest expenses/CNIL (T3, T5, T4PS, T5008, RC359) from the Investment income and expenses section.
Information slips for Nathan:
T5007 - Statement of Benefits
Text version
T5007 – Statement of benefits
Protected B
Recipient’s name and address:
Last name: Kearns
First name: Nathan
123 Main Street
City, Province X0X 0X0
Box 11: Social assistance payments or provincial or territorial supplements: 10,476.00
Box 12: Social insurance number: 000 000 000
T5 - Statement of Investment Income
Text version
T5 – Statement of Investment Income
Protected B
Recipient’s name and address:
Kearns, Nathan
123 Main Street
City, Province X0X 0X0
Payer’s name and address:
Bank 1
456 Main Street
City, Province X0X 0X0
Box 13: Interest from Canadian sources: 12.00
Information slip for Sophia:
T5007 - Statement of Benefits
Text version
T5007 – Statement of Benefits
Protected B
Recipient’s name and address:
Last name: Kearns
First name: Sophia
123 Main Street
City, Province X0X 0X0
Box 11: Social assistance payments or provincial or territorial supplements: 9,120.00
Box 12: Social insurance number: 000 000 000
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Solution: Couple receiving social assistance
Instructions
This solution was calculated using the 2021 version of UFile CVITP, with Ontario as the province of residence. To validate your results, refer to the federal totals generated on lines 15000, 23600, 26000, and 42000. Calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.
Text version
Nathan Kearns
Total income
12100 Interest and other investment income: $12.00
14500 Social assistance payments: $19,596.00
14700 Non taxable income (add lines 14400, 14500, 14600): $19,596.00
15000 Total income: $19,608.00
Net income
23600 Net income: $19,608.00
Taxable income
25000 Other payments deduction: $19,596.00
26000 Taxable income: $12.00
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30300 Spouse or common-law partner amount: $13,808.00
33500 Total: $27,616.00
33800 Total @ 15% : $4,142.40
35000 Non refundable tax credits: $4,142.40
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $0.00
43500 Total payable: $0.00
Payments and credits
48200 Total credits: $0.00
Sophia Kearns
Total income
12100 Interest and other investment income:
14500 Social assistance payments:
14700 Non taxable income (add lines 14400, 14500, 14600):
15000 Total income: $0.00
Net income
23600 Net income: $0.00
Taxable income
25000 Other payments deduction:
26000 Taxable income: $0.00
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30300 Spouse or common-law partner amount:
33500 Total: $13,808.00
33800 Total @ 15%: $2,071.20
35000 Non refundable tax credits: $2,071.20
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $0.00
43500 Total payable: $0.00
Payments and credits
48200 Total credits: $0.00
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