CVITP Assist: Reporting Social Assistance Income for Couples
REPORTING SOCIAL ASSISTANCE INCOME FOR COUPLES
General Rule:
When spouses or common-law partners lived together during the year and one or both received social assistance payments, the spouse with the higher net income must report the total social assistance income for both, regardless of whose name appears on the T5007 slip.
When comparing the spouses’ net incomes to determine who is higher, exclude:
Social assistance payments (line 14500), and
Child care expenses (line 21400).
Using UFile – Both Spouses Present:
When both spouses attend the clinic and their full tax information is entered:
UFile automatically assigns the T5007 (social assistance) income to the correct spouse based on the program’s internal rules.
No manual adjustments are required.
Using UFile – Only One Spouse Attends (Net Income Only Option):
When only one spouse attends the clinic and the Spouse Interview Type is set to “Net income only”, extra care is needed.
Ask whether either spouse received social assistance income. If yes, determine which spouse must report it (the one with the higher net income, excluding line 14500 and 21400 items).
Important:
If social assistance income is entered for the attending spouse, UFile will include it in that person’s return even if that spouse has the lower income.
This is incorrect.
Correct approach:
If the attending spouse has lower net income, do not enter their T5007 slip into UFile. The non-attending spouse (with higher net income) must report it.
If the attending spouse has higher net income, enter all social assistance income (for both spouses) into UFile.
If the non-attending spouse has already filed their return, they may need to submit a T1 Adjustment Request to add or remove the social assistance income. The situation should be clearly explained to the client before proceeding.
Becoming Spouses Part Way Through the Year:
When individuals become spouses or common-law partners during the tax year, social assistance reporting requires special attention.
Example: Ali and Sam married on July 1.
Before marriage, Ali received $5,000 in social assistance.
After marriage, Ali received another $4,000.
For the year as a whole, Sam had the higher net income.
Result:
Ali reports the $5,000 received before marriage.
Sam (the higher-income spouse) reports the $4,000 received after marriage.