TurboTax: Social Assistance (T5007) & UCCB


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Q: How do one report UCCB and social assistance on their tax return? Who claims these amounts on a joint return?

A: As shown in the video...

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Step 1: Fill in the personal dialog box for both individuals in the relationship...

Step 2: Fill in the social Assistance amount in box 11 of T5007.

Step 3: Fill in UCCB amounts in box 10 of RC62...

Step 4: Declare any employment amount in Box 14 of T4.

Step 5: Declare any self-employment amount on T2125 and other income on T4A.

Step 6: Check line 145 on T1 General for both individuals to figure out the individual claiming the social assistance amount.

Step 7: Check Line 117 on T1 General for the Individual claiming UCCB on RC62.

Step 8: Make sure the employment income on Line 101 matches box 14 of T4 for the individual who is employed

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Relevant Material: "The T5007 slip (Statement of Benefits) is a significant Canadian tax document used to report workers' compensation benefits and social assistance payments received by an individual during a calendar year. 

Its primary significance lies in ensuring accurate reporting of all income sources to the Canada Revenue Agency (CRA), which uses this information to determine eligibility for various federal and provincial benefits and credits. 
Key Significance
  • Income Reporting: The T5007 reports the total amount of benefits received to the CRA. Recipients are required to include this amount in their total income when filing their income tax and benefit return.
  • Non-Taxable Benefits: The amounts reported on the T5007 slip (specifically in Box 10 for workers' compensation and Box 11 for social assistance) are generally not taxable. A corresponding deduction is usually claimed on line 25000 of the tax return, effectively resulting in zero tax paid on these benefits.
  • Determining Eligibility for Credits and Benefits: The main purpose of reporting these non-taxable amounts is to calculate a recipient's net income, which then determines their eligibility for important income-tested government programs, such as:
    • The Canada Child Benefit (CCB)
    • The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit
    • The Guaranteed Income Supplement (GIS) for seniors
    • Certain provincial or territorial tax credits and other non-refundable tax credits
  • Government Oversight: For the provincial, territorial, or municipal agencies and workers' compensation boards issuing the slips, it is a mandatory reporting requirement by law to ensure transparency and proper administration of benefit programs. 
Who Receives a T5007?
Individuals typically receive a T5007 slip if they received: 
  • Workers' compensation benefits due to injury, disability, or death.
  • Social assistance payments totaling more than $500 in a calendar year, based on a means, needs, or income test (e.g., payments for food, clothing, and shelter). 
Where to Use the Information
Recipients use the information from their T5007 slip when completing their personal Income Tax and Benefit Return: 
  • Box 10 amount is reported on line 14400 (workers' compensation benefits).
  • Box 11 amount is reported on line 14500 (social assistance payments).
  • Both amounts are then deducted on line 25000 to ensure they are not taxed..." (Google) 
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Relevant Material: "The Universal Child Care Benefit (UCCB) was a Canadian federal government program designed to provide direct financial support to families to help with the costs of raising children and to support their choice in child care. It was a significant component of Canada's social policy from 2006 until it was replaced by the Canada Child Benefit (CCB) in 2016. 
Key Aspects and Significance
  • Financial Support: The primary purpose of the UCCB was to provide a fixed monthly payment directly to parents or guardians for each eligible child. Initially, it provided $100 per month for each child under the age of six, later enhanced to $160 for children under six and $60 for children aged six through seventeen.
  • Support for "Choice": The government emphasized that the benefit was intended to give parents flexibility and "choice" in how they arranged for child care, whether through formal care, care by a relative, or one parent staying home, rather than funding a specific type of institutional care.
  • Universal and Taxable Nature: The UCCB was considered "universal" because all eligible families received the benefit regardless of their income level, though it was a taxable benefit (generally in the hands of the lower-income spouse). This contrasted with later, income-tested benefits.
  • Economic Impact: The lump-sum retroactive payments made during enhancements were noted for providing a "noticeable bump in consumption spending" and acting as a form of economic stimulus at the time.
  • Political and Policy Shift: The UCCB represented a significant policy shift from previous federal approaches that had focused more on tax credits or arrangements with provinces for creating child care spaces. The subsequent replacement of the UCCB with the non-taxable, income-tested Canada Child Benefit in 2016 reflected another major change in government philosophy, this time focusing more heavily on reducing child poverty among low- and middle-income families. 
In essence, the UCCB's significance lies in its role as a direct, universal cash transfer that aimed to provide financial relief and flexibility to all Canadian families with children during its operational period, and as a key point of debate in the evolution of Canadian child benefit policy"  (Google) 
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Location: North America

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