What is line 14500 on the tax return?

Filing Taxes | What is line 14500 on the tax return?

Line 14500 on the tax return is also known as "social assistance payments." Social assistance payments are paid to recipients or other parties based on a means, needs, or income test and cover expenses such as rent, utilities, and provisions for food, clothes, and shelter. Line 14500 is usually displayed at 5007, the Statement of Benefits slip. The payments are often sent to: 

  1. Person 
  2. disabled people residing in nursing homes or other comparable facilities

Moreover, whether they reside in nursing homes or other comparable facilities, seniors (usually 65 years of age or older). Despite the fact that these sums are not taxable, you must include them in your net income to ensure that any benefits for which you may be eligible are computed correctly. The Canada Child Benefit, the Goods and Services Tax/Harmonized Sales Tax Credit, some Provincial or Territorial Tax Credits, and various Non-Refundable Tax Credits are among these benefits.

Statement of Benefits T5007

The statement of benefits T5007 is contained in box 11. Lines 14500 and 25000 of your Income Tax and Benefit Return should contain this amount.

In addition, the spouse or common-law partner with the greater net income is required to disclose this amount if you were married or in a common-law relationship at the time you received social assistance benefits or provincial or territorial supplements. If your spouse or common-law partner and you both earn the same amount of net income, the person whose name appears on the slip must disclose it.

The Calculation of Reportable Payments

The calculation of reportable payments can be solved. Subtract that sum from the total in box 11 if you received SA payments on behalf of a foster child. The amount you must provide on your income tax return is the balance.

The difference should be zero if you only received Social Security benefits for a foster person and not for yourself or anybody else living in your house. In this case, there is nothing to report.

Conclusion 

This blog has covered line 14500 on the tax return. Some of the key points are that social assistance payments are paid to recipients or other parties based on a means, needs, or income test. They cover expenses such as rent, utilities, and provisions for food, clothes, and shelter. Despite the fact that these sums are not taxable, you must include them in your net income.

Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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