Do You File Taxes on ODSP or Ontario Works? 2026 Guide

Filing taxes when you receive social assistance can feel confusing. You might assume there is no point — you did not earn much, or you did not earn anything at all. But skipping your tax return is one of the most expensive mistakes you can make on ODSP or Ontario Works. This guide explains exactly what you need to do, why it matters, and how to do it for free in about 15 minutes.

CRA does not know what benefits to pay you unless you tell them your income situation. Your tax return is how they confirm your eligibility and calculate your amounts for every income-tested program.

No return filed means CRA cannot confirm your eligibility. When that happens, payments stop.

Here is what is at stake for a single person on ODSP who does not file:

A single person losing just the GST/HST Credit and OTB gives up roughly $1,500 to $2,000 per year — money that would have come automatically if they had filed a 15-minute tax return.

For seniors, the consequences are even worse. GIS automatically renews each July based on your previous year's tax return. If CRA does not have your return by April 30, your GIS payments stop in July with no warning other than the missing deposit. Retroactive GIS is limited to 11 months — anything beyond that is permanently lost. For a single senior receiving maximum GIS, that is over $1,105/month at risk. See the OAS and GIS payment schedule for the full 2026 calendar.

Filing your return is also the only way to unlock the Canada Disability Benefit ($200/month) if you have a Disability Tax Credit certificate.

The short answer: your basic needs and shelter payments are not taxable. They do not increase your tax bill.

But there is a nuance that confuses people — the T5007 slip.

Each year, the Ontario government sends you a T5007 (Statement of Benefits) showing how much you received in ODSP or Ontario Works. This slip is reported on your tax return at line 14500 (social assistance payments). When you see it appear on your return, it can look like it is being taxed.

It is not. Here is how it actually works:

Social assistance amounts are included in your total income (line 15000) but then deducted on line 25000 (social assistance repayment) if the amount was not otherwise subject to tax. For most ODSP and OW recipients, the net effect on your tax bill is zero. You do not owe tax on these payments.

However — and this is important — the T5007 amount can affect the calculation of certain income-tested benefits. Programs like the GST/HST Credit and OTB use your net income or adjusted family net income to determine how much you receive. In most cases, because social assistance is deducted back out, it does not meaningfully change your benefit amounts. But if you have other income as well, the interaction can be complex.

The bottom line: report the T5007 on your return as instructed. Do not skip it, do not worry about it increasing your taxes, and do not avoid filing because of it.

Depending on your situation, you may receive one or more of these slips:

T5007 (Statement of Benefits) — issued by the Ontario government for ODSP or Ontario Works payments received during the year. This is the most common slip for social assistance recipients. It is mailed to you and also available in CRA My Account.

T4A (Statement of Pension, Retirement, Annuity, and Other Income) — if you received the Canada Disability Benefit, CPP, or other federal benefits during the year.

T4 (Statement of Remuneration Paid) — if you had employment income. Your employer issues this by the end of February.

T5 (Statement of Investment Income) — if you earned interest on savings or investments.

If you did not receive a slip you were expecting, check your CRA My Account — most slips are available there by mid-March. You can also contact your ODSP or OW caseworker to confirm whether a T5007 was issued.

If a slip has not arrived by the time you need to file, file anyway using the best information you have. You can amend your return later if needed. Do not let a missing slip become a reason to miss the deadline.

For most people, the deadline to file your 2025 income tax return is April 30, 2026. If you are self-employed (or your spouse is), the filing deadline is June 15, 2026 — but any tax owing is still due April 30.

Here is what happens if you do not file on time:

Your benefit payments may stop or be delayed. CRA recalculates income-tested benefits starting in July each year based on your tax return. If your return is not processed by then, payments for GST/HST Credit, OTB, CCB, and CWB can be paused. For the GST/HST credit payment dates and Ontario Trillium Benefit schedules, see our detailed guides.

GIS stops entirely. For seniors, GIS renews in July based on the previous year's return. No return means no GIS. The gap can last months while your late return is processed. Retroactive payments cover a maximum of 11 months — anything beyond that is lost forever.

Late filing penalty — probably does not apply to you. CRA charges a late filing penalty only if you owe tax. Most people on ODSP or Ontario Works owe nothing. If you do not owe, there is no penalty for filing late — but your benefit payments are still affected by the delay.

File late rather than not at all. If you have already missed the deadline, file as soon as possible. CRA will process your return and restore your benefits once it is assessed. Retroactive benefit payments are available in many cases, though with limits (11 months for GIS, up to 10 years for GST/HST Credit). The sooner you file, the less you lose.

For a broader guide to the tax filing deadline and all affected benefits, see file your 2025 taxes by April 30.

You have several options, and all of them work well for simple returns:

Community Volunteer Income Tax Program (CVITP) is the most hands-off option. Trained volunteers prepare and file your return for free at clinics across Ontario. You bring your slips, they do the rest. To find a clinic near you, search "CVITP clinic" on the CRA website or call 1-800-959-8281. Many clinics are at community centres, libraries, and churches.

CRA SimpleFile is a newer option launched in March 2026. If you are eligible, CRA will invite you through My Account or by mail. You confirm pre-filled information — often just a few clicks or a short phone call — and your return is filed. Many people on OW and ODSP qualify. Check your CRA My Account in early March to see if you received an invitation. This year, even people who did not receive a paper invitation may be eligible through an online questionnaire.

Free tax software lets you file from home. Wealthsimple Tax, StudioTax, and GenuTax are all CRA-certified and free for simple returns. You enter your slips, the software calculates everything, and you file electronically through NETFILE. Most returns take 15 to 20 minutes.

CRA My Account is where you can check your NETFILE access code, view available tax slips, track your return status, and see benefit payment amounts. If you do not have an account, set one up at canada.ca before filing season gets busy.

Filing a return is not just about reporting income. It is also about claiming credits and benefits you are entitled to. Here are the ones that matter most for people on social assistance:

GST/HST Credit — You do not need to apply separately, but you do need to check the box on Schedule 11 of your return. If you skip it, CRA may not include you. Single adults can receive up to $519/year.

Ontario Trillium Benefit (OTB) — File the ON-BEN form (or the equivalent section in your tax software). This is how you apply for the Ontario Energy and Property Tax Credit, Ontario Sales Tax Credit, and Northern Ontario Energy Credit. Many people miss this step and lose $100+/month.

Disability Tax Credit (DTC) — If you have a disability and do not already have the DTC, consider applying. Your doctor completes CRA Form T2201. Being approved for the DTC opens the door to the Canada Disability Benefit ($200/month), the disability supplement of the Canada Workers Benefit, and additional credits.

Medical expenses — Prescription costs, dental bills, vision care, mobility aids, and many disability-related expenses can be claimed. Even if the tax credit is small, these amounts can affect benefit calculations in your favour.

Canada Workers Benefit (CWB) — If you had employment income above $3,000, you may qualify for the CWB. This is a refundable credit of up to $1,633 for a single person. It is calculated automatically when you file, but you can also receive advance payments.