Other Government Benefits

You may be eligible for Tax Credits, Benefits and Incentives (see below), including the Disability Tax Credit and Registered Disability Savings Plans (see below).  If you have children, you and/or your children may be eligible for Child Benefits (see below).

There may be other benefits available to you.  Please see our:

Tax Credits, Benefits and Incentives

There are many tax credits, benefits and incentives available from the Canadian and Ontario governments for you and your children.  Some of these benefits are explained below. If you have questions or concerns about these credits, benefits and incentives, you should get legal advice (see Getting legal help below).

Please see our What’s New posts on December 1 and December 6, 2011, about changes to the way that some Ontario tax credits are paid:  www.halco.org/2011/news/more-about-ontario-tax-credit-changes

The Government of Ontario website has information about tax credits, benefits and incentives: www.rev.gov.on.ca/en/taxcredits/index.html

The Canada Benefits Government of Canada website has information about tax credits and benefits: www.canadabenefits.gc.ca

Disability Tax Credit

The Disability Tax Credit (DTC) may help you to reduce the amount of income tax that you have to pay. You or your dependants may be eligible for the DTC. A dependant for the DTC can be your spouse or common-law partner, your or your spouse’s or common-law partner’s parent, grand-parent, child, grandchild, brother, sister, aunt, uncle, niece or nephew. You may be able to claim your dependant’s DTC to reduce your own income tax. The rules can be complicated, so you should get advice from an income tax expert. AIDS service organizations (ASOs) and community agencies often have free income tax clinics (please see our HIV Info page for more information about community organizations and ASOs).

You can get more information about tax deductions for people with disabilities, including the Disability Tax Credit/Disability Amount, from the Canada Revenue Agency at toll-free telephone 1-800-959-8281, TTY toll-free 1-800-665-0354, www.cra-arc.gc.ca/tx/ndvdls/sgmnts/dsblts/ddctns/menu-eng.html

Registered Disability Savings Plans (RDSPs)

Registered Disability Savings Plans (RDSPs) were introduced by the Government of Canada in 2008.  RDSPs are long-term savings plans for people with disabilities in Canada, including children.  The RDSP “beneficiary” is the person with the disability who will benefit from the RDSP.

To be the “beneficiary” of an RDSP, you must:

  • be under 60 years of age at the end of the calendar year that you open your RDSP
  • be eligible for the Disability Tax Credit (DTC)
  • have a valid Social Insurance Number, and
  • live in Canada.

The DTC or Disability Amount is an income tax credit for people who meet the definition of disability under Canada’s income tax laws.  You must apply for the DTC and be found eligible for the DTC to be eligible for your RDSP (please see Disability Tax Credit above).

The RDSP “plan holder” is the person who sets up and manages the RDSP.  The plan holder may be the beneficiary or may be another person, for example the parent of the beneficiary.

Anyone can make contributions to your RDSP with the written permission of your RDSP plan holder.  The lifetime maximum for contributions to your RDSP is $200,000.00.  RDSP contributions are not tax deductible.

RDSPs do not affect your eligibility for government benefits including:

  • Ontario Disability Support Program (ODSP) and Ontario Works (OW),
  • Ontario Rent-Geared-to-Income (RGI) housing assistance, and
  • Government of Canada benefits, including the Child Tax Benefit.

But, you have a legal obligation to inform ODSP/OW and your RGI housing provider if you or anyone in your benefit unit starts an RDSP or has an RDSP

The Government of Canada can provide bonds and grants to RDSP beneficiaries who are under 50 years of age (up to the calendar year that you turn 49 years of age).  It may be possible to “carry forward” to “catch up” on RDSP bonds, grants and contributions for past years, but you must apply by the end of the calendar year in which you turn 49 years of age.

The Government of Canada RDSP “bond” is a government payment of up to $1,000.00 per year from the government for RDSP beneficiaries who are under 50 years of age and who have a modest family income.  You do not have to make any contributions to your RDSP to be eligible for the RDSP bond. The amount of the bond depends on your family income.  The lifetime maximum that you can receive in government RDSP bonds is $20,000.00.

The Government of Canada RDSP “grant” is a government payment that matches your annual contributions to your RDSP at $3.00, $2.00 or $1.00 for each $1.00 of contributions.  You can only receive the RDSP grant up until the calendar year that you turn 49 years of age. The amount of the matching grant depends on your family income.  The grant is up to $3,500.00 per year, with a lifetime maximum of $70,000.00.

If your RDSP includes government grants and bonds, all of the money must remain in your RDSP for at least 10 years after the most recent bond/grant payment.  If you take money out before the 10 years have passed, the grants and bonds received in the last 10 years will have to be paid back.  There is an exception to the 10 year bond/grant repayment rule if a medical doctor certifies that you have five or less years to live.

RDSPs are partly “tax-deferred” savings plans. You only have to pay tax on any government bonds/grants and any interest/income earned by your RDSP, and only when you take money out of your RDSP.  The tax will be at your tax rate for the year that you take the money out.  The money that you contribute to your RDSP would have already been taxed before you contributed the money to your RDSP so it is not taxed when you take money out.

Many financial institutions, like banks and credit unions, offer RDSPs.  You choose the financial institution for your RDSP, and it is important to be careful in choosing.  Some financial institutions may charge fees.  Also, there are different types of options and investments.

The rules about RDSPs are complicated, so it is a good idea to get legal advice.  If you are living with HIV and have questions about RDSPs, please call us for advice.

Here is a link to Government of Canada RDSP information: www.disabilitysavings.ca

The RDSP Ontario website www.rdspontario.ca includes a Step by Step Guide to becoming eligible, opening and managing your RDSP:  www.rdspontario.ca/PLAN_SBS_Guide.pdf

Registered Retirement Savings Plans (RRSPs)

If you or your spouse/partner work and have employment income, you can save money in a Registered Retirement Savings Plan (RRSP). RRSP contributions can be used to reduce your income tax. Any income you earn in the RRSP is usually exempt from income tax until you cash in, make withdrawals, or receive payments from your RRSP. The amount you can contribute to an RRSP each year depends on the amount of your employment income.  RRSPs are usually considered assets for Ontario Disability Support Program (ODSP) and Ontario Works (OW) benefits, so RRSPs can affect your ODSP and OW benefits.  You must tell ODSP/OW if you or anyone in your benefit unit starts or has any RRSPs. For more information about RRSPs and ODSP/OW, contact your local legal clinic.

Here is a link to Government of Canada information about RRSPs: www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html

Registered Education Savings Plans (RESPs) for your children

You can start saving for your children’s post-secondary education by starting a Registered Education Savings Plan (RESP). Even if you contribute a small amount of money each month, it can add up to a lot for your child’s education. Your child’s RESP may also be eligible for contributions from the Government of Canada (see below).

You will need a Social Insurance Number (SIN) for you and for your child if you want to open an RESP. You will also need to choose an RESP provider. It is important to be very careful to choose the right type of RESP and the right RESP provider. Some providers charge fees. Also, there are a lot of rules about RESPs and you do not want to lose the money you invest.

If you receive the National Child Benefit Supplement for your child, the government of Canada may contribute to your child’s RESP even if you do not put any money in the RESP yourself. The government of Canada can also contribute to your child’s RESP through the Canada Education Savings Grant (CESG) and there is an additional CESG for lower income households.

An RESP will not affect your Ontario Disability Support Program (ODSP) and Ontario Works (OW) benefits, but you must tell ODSP/OW if you or your child start or have an RESP.

The Can Learn website has a lot of general information about RESPs, including information about options, choosing an RESP provider, government bonds and grants, etc. Here is a link to the Can Learn website: www.canlearn.ca/eng/saving/resp/index.shtml

Tax-Free Savings Accounts (TFSAs)

Tax-Free Savings Accounts (TFSAs) are registered savings accounts that let you earn tax-free investment income. Canadian residents age 18 or older can contribute up to $5,000 annually to a TFSA. Money you put into a TFSA is not tax deductible (like RRSPs) but investment income and withdrawals from TFSAs are tax-free. TFSAs are considered assets and will affect your Ontario Disability Support Program (ODSP) or Ontario Works (OW) benefits. You must tell ODSP/OW if you or anyone in your benefit unit starts or has a TFSA.

Here is a link to information about Tax Free Savings Accounts from the Government of Canada: www.tfsa.gc.ca/index.html

Getting legal help

The law is complicated, so you should get legal advice about your situation. Contact us for legal advice if you are living with HIV or you can contact your local community legal clinic.

Child Benefits

There are several child benefits available from the Government of Canada and the Government of Ontario.

Government benefits for children are usually paid to the child’s primary caregiver or custodial parent. Some child benefits may be shared if there is more than one primary caregiver. If there is a change in primary caregiver or custodial parent, the new caregiver will need to apply to receive the child benefits. The new caregiver will have to show some proof of the change, such as an agreement, a custody order or a will, and, will need to contact the child benefit provider(s), for example the Canada Child Tax Benefit program, the Assistance for Children with Severe Disabilities, etc. (see below for more information and contact information).

If you have questions or concerns about child benefits, you should get legal advice {see Getting Legal Help below).

Canada Child Tax Benefit

The primary benefit is the Canada Child Tax Benefit (CCTB or CTB), which is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. Other government benefits may be available for low-income families and for families with children with disabilities, and to assist with child care costs. Usually, you will be assessed for these benefits when you apply for the Canada Child Tax Benefit. You can get more information about the Canada Child Tax Benefit and related benefits by calling the Government of Canada: toll-free telephone 1-800-387-1193. TTY toll-free 1-800-665-0354, www.cra-arc.gc.ca/bnfts/cctb/menu-eng.html

Assistance for Children with Severe Disabilities

The Assistance for Children with Severe Disabilities (ACSD) program is provided by the Ontario government to help with extra costs, including prescription medications, respite care, etc. You must apply to the government of Ontario to receive the ACSD. You can get more information about the Assistance for Children with Severe Disabilities by calling Service Ontario: telephone 416-326-1234 or toll-free 1-800-267-8097, TTY 416-325-3408 or TTY toll-free 1-800-268-7095, or by visiting www.children.gov.on.ca/htdocs/English/topics/specialneeds/disabilities/index.aspx

Special Services at Home

The Special Services At Home (SSAH) benefit is provided by the Ontario government to help if you are caring for a child or adult with developmental disabilities. The SSAH can help you to pay for supports, respite care, etc. You must apply to receive SSAH. You can get more information about the Special Services At Home by calling Service Ontario: telephone 416-326-1234 or toll-free 1-800-267-8097, TTY 416-325-3408 or TTY toll-free 1-800-268-7095, or by visiting www.children.gov.on.ca/htdocs/English/topics/specialneeds/specialservices/index.aspx

Ontario Works Temporary Care Assistance

If someone else is caring for your children under the age of 18, that person may be eligible for Ontario Works Temporary Care Assistance benefits for your child(ren). You can get more information about Ontario Works Temporary Care Assistance by calling Service Ontario: telephone 416-326-1234 or toll-free 1-800-267-8097, TTY 416-325-3408 or TTY toll-free 1-800-268-7095, or by visiting www.mcss.gov.on.ca/en/mcss/programs/social/ow/apply.aspx

Getting legal help

The law is complicated, so you should get legal advice about your situation. Contact us for legal advice if you are living with HIV or you can contact your local community legal clinic.