Social Assistance and Worker’s Compensation​

Social Assistance and Worker’s Compensation

Social Assistance and Worker’s Compensation is included in income for tax purposes (division B); however, the taxpayer gets a division C deduction for the same amount. Therefore, Social Assistance and Worker’s Compensation payments have no effect on Taxable Income.

• The only reason why it is included in Net Income for Tax Purposes (i.e. Division B) is because some credits such as Donations, Spousal Amount, and the Infirm Dependent Credit depend on Division B income (NI for tax purposes).

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