Tax Guide for Social Assistance Recipients in Quebec: Income Reporting, Benefits, and Eligibility Rules — CPA Firm Near You, Montreal

Introduction

Individuals receiving social assistance (aide sociale), welfare, last-resort financial support, or special social programs in Quebec often assume they do not need to file taxes. In reality, filing a tax return every year is essential — not only to stay compliant, but also to receive major refundable credits and benefits. This guide explains how social assistance is treated for tax purposes, what credits recipients qualify for, and how a CPA firm near you in Montreal can help ensure accurate and beneficial tax filings.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, social assistance is not taxable income. However, recipients must still report the amounts received through RL-5 slips (Revenu Québec) and include them on their provincial tax return for informational purposes. Filing taxes is required to access refundable credits such as the GST/HST Credit, Quebec Solidarity Tax Credit, and the Canada Workers Benefit (if there is earned income). CRA and Revenu Québec require recipients to file a return even if they had no employment income.

Key Court Decisions

Courts have ruled that individuals receiving social assistance must still file their annual tax returns to access refundable credits. Judges have confirmed that RL-5 benefits are non-taxable but must be disclosed. Several cases highlight that failing to file taxes may result in loss of eligibility for major credits or delays in receiving benefits. Courts also emphasize that individuals who return to work after receiving social assistance must report all employment income accurately to avoid reassessments.

Why CRA and Revenu Québec Target Social Assistance Recipients

While social assistance recipients are not “targeted,” their files may be reviewed because:
• Credits claimed do not match reported income
• RL-5 slips are missing or incomplete
• Addresses change frequently
• Marital status and dependent information may be outdated
• Employment income or gig income is unreported
• Solidarity Credit recalculations require verification

Audits focus primarily on accuracy of credits and benefits rather than tax owing, since RL-5 amounts are not taxable.

Mackisen Strategy

At Mackisen CPA Montreal, we help social assistance recipients file accurate returns and secure every refundable credit available. We ensure RL-5 slips are reported correctly, claim all eligible benefits, update personal information with Revenu Québec and CRA, and identify potential refundable amounts such as GST/HST Credit, Solidarity Credit, Canada Child Benefit, and medical or disability credits. If a file is reviewed, we prepare supporting documents and respond directly to the authorities on your behalf.

Real Client Experience

A Montreal social assistance recipient had not filed taxes for four years, losing thousands in Solidarity and GST credits. We filed all missing returns, corrected personal information, and recovered the missed amounts. In another case, a recipient began part-time work but did not report income properly; we reconstructed employment records and prevented a reassessment.

Common Questions

Is social assistance taxable?

No. It is non-taxable but must be reported using RL-5.

Do I still need to file taxes if I earn no income?

Yes. Filing is required to receive GST/HST Credit, Solidarity Credit, and other benefits.

What credits can social assistance recipients claim?

GST/HST Credit, Quebec Solidarity Tax Credit, medical credits, disability credits, and the Canada Child Benefit if applicable.

What if I start working again?

You must report all employment income, and your benefits will adjust automatically.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps social assistance recipients stay compliant while maximizing refundable credits. Whether filing current-year or multiple past-year returns, our expert team ensures precision, transparency, and complete support.