The federal government offers a lot of benefits and credits throughout the year.
But not all of those payments are tax-free, and even the benefits that aren't taxable depend on your tax return.
Now that you can file your taxes in Canada, you might be wondering if you have to report receiving benefits like the Canada Pension Plan, Canada Child Benefit and GST/HST credit.
So, here's what you need to know about government payments and how they affect filing your tax return this year.
Canada Disability Benefit
The Canada Disability Benefit provides financial support to people with disabilities who are between 18 and 64 years old.
It's tax-free because disability benefits aren't considered taxable income.
That means you don't have to claim it when filing your tax return.
But to keep receiving the benefit, you must continue to meet the eligibility criteria, which includes filing your income tax return by April 30 every year.
Child disability benefit
The child disability benefit is a tax-free monthly payment made to families who care for a child under 18 years old "with a severe and prolonged impairment in physical or mental functions."
You don't have to claim it on your tax return, but if you want to continue receiving the benefit, you need to file your taxes on time every year.
That's because the Canada Revenue Agency uses information from your income tax and benefit return to calculate your payments.
Veteran disability benefit
A veteran disability benefit is a tax-free financial payment that recognizes the impact a service-related injury or disease can have on your life.
Since it's tax-free, you don't have to claim it as income on your tax return.
Canada Pension Plan
The Canada Pension Plan (CPP) retirement pension is a taxable benefit that replaces part of your income when you retire.
It's a taxable benefit because CPP payments are considered income, so you get a T4 or NR4 tax slip showing the amount you received during the previous year.
Taxes are not automatically deducted from your CPP. If you choose not to ask for monthly tax deductions, you could have to pay when you file your tax return.
If you don't want to deal with that when filing your return in years to come, you can opt to have federal income tax deducted from your monthly payments.
You do that by signing in to your My Service Canada Account and selecting the "Change my tax deductions" link from the Canada Pension Plan section, completing the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP3520CPP) form and mailing it to or dropping it off at a Service Canada office, or calling Service Canada.
Old Age Security
Old Age Security (OAS) pension is considered taxable income, which means you have to claim it on your tax return.
Since it's taxable, you get a T4 or NR4 tax slip showing the amount you received during the previous year.
Taxes are not automatically deducted from your OAS payments. If you choose not to ask for monthly tax deductions, you could have to pay when you file your tax return.
If you don't want to deal with that when filing your return in years to come, you can opt to have federal income tax deducted from your monthly payments.
You do that by signing in to your My Service Canada Account and selecting the "Change my tax deductions" link from the Canada Pension Plan section, completing the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP3520CPP) form and mailing it to or dropping it off at a Service Canada office, or calling Service Canada.
GST/HST credit
The goods and services tax/harmonized sales tax — which is better known as the GST/HST credit — is a tax-free quarterly payment for those with low and modest incomes to help offset GST or HST.
Since the credit is tax-free, you don't have to claim it on your tax return.
But if you want to continue getting payments, you have to file your taxes because that's how the government determines your eligibility and payment amounts.
If you file your taxes after the April 30 deadline, your GST/HST credit payments could be delayed.
Canada Child Benefit
The Canada Child Benefit is a tax-free monthly payment for eligible families to help with the cost of raising children under 18 years of age.
While you don't have to claim it on your tax return, you must file your taxes every year to continue receiving payments from the Canada Child Benefit.
The payments could be delayed if you file late or stop altogether if you don't do your taxes.
Canada Workers Benefit
The Canada Workers Benefit is actually a refundable tax credit to help those who are working and earning a low income. It includes a basic amount and a disability supplement.
A refundable tax credit can get you a refund if it's more than your tax owing.
If you're eligible, you can claim the Canada Workers Benefit when you file your tax return.
You have to file out and submit Schedule 6, Canada Workers' Benefit. Then, enter the result from "Step 2 – Basic CWB" or "Step 3 – CWB disability supplement," whichever applies, from Schedule 6 on line 45300 of your tax return.
Advanced Canada Workers Benefit
If you're entitled to receive the Canada Workers Benefit, you'll get up to 50% of it in advance payments through the Advanced Canada Workers Benefit.
Also, if you're entitled to receive the disability supplement, you'll receive 50% of your disability supplement amount with your basic advanced payments.
You have to enter the result from "Step 4 – Advanced Canada Workers Benefit (ACWB)" of Schedule 6 on line 41500 of your tax return.
If you received an RC210 slip for advanced payments in 2025, you have to report the amounts on Schedule 6, Canada Workers Benefit.
If you have a spouse or common-law partner, whoever is claiming the basic Canada Workers Benefit should report the amount from box 10 of all RC210 slips received for both of you.
READ NEXT: 13 Canadian tax credits you could claim when filing your return this year
This article's cover image was used for illustrative purposes only.
