Line 14500 on a tax return, also known as “Social Assistance Payments,” refers to payments made to recipients or other parties based on a means, needs, or income test. These payments cover essential expenses like rent, utilities, food, clothing, and shelter. Typically, Line 14500 is displayed on the Statement of Benefits slip (5007).

Social assistance payments are usually disbursed to disabled individuals living in nursing homes or comparable facilities, as well as seniors aged 65 or above residing in similar facilities. Although these payments are not taxable, it is important to include them in your net income to ensure accurate calculation of any benefits you may be eligible for, such as the Canada Child Benefit, Goods and Services Tax/Harmonized Sales Tax Credit, certain Provincial or Territorial Tax Credits, and various Non-Refundable Tax Credits.

The T5007 Statement of Benefits

The Statement of Benefits T5007 is included in box 11, and the amount should be reported on Lines 14500 and 25000 of your Income Tax and Benefit Return.

If you were married or in a common-law relationship when you received social assistance benefits or provincial or territorial supplements, the spouse or common-law partner with the higher net income must report this amount. If both partners earn the same net income, the person named on the slip must report it.

How to Calculate Reportable Payments

Calculating Reportable Payments is a straightforward process. If you received social assistance payments on behalf of a foster child, simply subtract that amount from the total in box 11. The remaining balance is the amount you must report on your income tax return.

If you only received Social Security benefits for a foster person and not for yourself or anyone else residing in your household, the difference should be zero. In such a case, there is no need to report anything.

In summary, this blog has provided an overview of Line 14500 on the tax return. It has been established that social assistance payments are disbursed to recipients or other parties based on a means, needs, or income test to cover expenses such as rent, utilities, and provisions for food, clothes, and shelter. Although these payments are not taxable, it is important to include them in your net income.