Benefits glossary
Government benefits, tax, disability and drug-coverage terms explained in plain language.
Definitions are educational. Official program rules still apply.
115 terms
Tax credits
The income amount the government uses to calculate many income-tested benefits. It starts with family net income and applies specific adjustments from your tax return.
Small changes in AFNI can change CCB, GST/HST credit, and other benefit amounts.
Appeals & applications
A formal request to have a benefit decision reviewed by a higher level or independent body after an initial denial or reduction.
Deadlines are strict, missing an appeal window can end your right to challenge a decision.
Appeals & applications
The last date to apply for a benefit period or program intake. Late applications may receive reduced retroactivity or be denied.
Some programs allow late filing with limits; others close the door entirely after a date.
Drug coverage
Prescription coverage provided automatically when you receive social assistance or some disability programs.
Losing assistance can end drug coverage the same month, plan transitions carefully.
Disability
Alberta's monthly living allowance for adults with a permanent disability that substantially limits their ability to earn a livelihood.
AISH has its own medical and financial tests separate from federal disability benefits.
General
Whether you meet the legal and program rules to receive a specific benefit, separate from whether you have applied.
Eligibility can change when income, family status, or health changes; reassessments are common.
CRA & Service Canada
Official correspondence confirming you are approved for a benefit and showing payment amount or start date.
General
When two programs pay for a similar need or reduce each other when received together.
Receiving one benefit can reduce another, stacking rules are program-specific.
General
The scheduled day a program deposits your payment. Dates cluster around month-end for many federal benefits.
Tax credits
The 12-month period many federal benefits use, often running from July to June, based on prior-year tax information.
Payments starting in July reflect income from the tax year two years earlier in many cases.
Tax credits
Your tax year is the calendar year on your return; many benefits use a July to June benefit year based on an earlier tax year.
Income changes today may not affect CCB until the next benefit year.
Caregiving
A non-refundable tax credit for people supporting a spouse, common-law partner, or dependant with a physical or mental impairment.
Eligibility depends on the dependant's impairment and your support relationship.
Children & family
A monthly tax-free payment to help eligible families with the cost of raising children under 18.
CCB amounts depend on AFNI, filing taxes on time keeps payments flowing.
Disability
A federal monthly payment for working-age people with disabilities who meet income and DTC-related requirements. It is separate from provincial disability assistance.
CDB can add federal income on top of provincial programs, but rules and payment amounts differ from provincial disability benefits.
Children & family
Government money deposited into an RESP for eligible children from low-income families, without requiring family contributions.
Families can receive CLB even if they cannot afford to save, opening an RESP is the first step.
Pensions & seniors
A monthly retirement pension based on your contributions while working. You can start as early as 60 or delay to 70 for a higher amount.
Tax credits
A refundable tax credit for low-income workers, with additional amounts for eligible families and people with disabilities.
CWB rewards employment income, amounts change as earnings rise.
Disability
A tax-free monthly supplement added to the Canada Child Benefit for families caring for a child eligible for the Disability Tax Credit.
Families must have DTC approval for the child before this supplement can be paid.
Income-tested benefits
A reduction in a benefit as your income rises above a threshold. You keep the benefit, but receive less.
Clawbacks explain why benefits shrink as income grows, they are not always sudden cut-offs.
General
A person you have lived with in a conjugal relationship for at least 12 continuous months, treated like a spouse for most benefit rules.
Benefits use combined household income, you must report common-law status changes to CRA.
Drug coverage
Your fixed share of a prescription cost at the pharmacy after the plan pays its portion.
Drug coverage
The combination of deductibles, copayments, and premiums you pay while the plan pays the rest.
Understanding your share helps budget for chronic medications.
Disability
A monthly payment from the Canada Pension Plan for contributors who cannot work regularly because of a severe and prolonged disability.
CPP-D can be a primary income source after disability, and may affect provincial disability or other benefits.
Pensions & seniors
Additional CPP contributions and benefits if you work while already receiving CPP retirement pension before age 70.
Pensions & seniors
Payments to eligible surviving spouses, common-law partners, and children after a CPP contributor dies.
CRA & Service Canada
CRA's secure online portal to view tax slips, benefit payments, NOA, and update direct deposit and marital status.
Appeals & applications
CRA's review or change to your tax return after initial processing, which can alter benefits based on that return.
A reassessment can trigger benefit repayments or new payments months later.
Social assistance
Income a program treats you as having even if you did not receive it, for example, room and board from family or deemed returns on assets.
Deemed income can reduce assistance even when your actual cash income is low.
General
A person who relies on you for basic needs, such as a child or sometimes an adult family member, recognized in tax and benefit rules.
Who counts as a dependant affects credits, benefits, and shared custody calculations.
CRA & Service Canada
Electronic payment of benefits into your bank account instead of by cheque.
Most federal benefits require or strongly encourage direct deposit for faster payment.
Tax credits
A non-refundable tax credit on your return when you are eligible for the Disability Tax Credit.
Unused disability amounts may be transferred to a supporting spouse or parent in some cases.
Tax credits
When a person with DTC approval cannot fully use the disability tax credit, a supporting family member may claim part of it.
Transfers require coordination on tax returns, both people must agree on who claims what.
Disability
British Columbia's provincial disability income and health supplement for people who meet Persons with Disabilities (PWD) status.
Disability
A non-refundable tax credit for people with severe and prolonged impairments in physical or mental functions. Approval is based on how your condition affects daily life, not on your diagnosis alone.
DTC approval can unlock other programs, including the Canada Disability Benefit and RDSP grants, and may reduce the tax you owe.
Drug coverage
An eight-digit number Health Canada assigns to each drug product sold in Canada, used to identify exact brands and strengths.
Formulary searches and coverage decisions often require the DIN, not just the drug name.
Disability
Re-applying for the Disability Tax Credit when CRA's approval period ends or your condition changes.
Letting DTC lapse can interrupt CDB, RDSP grants, and other linked benefits.
Social assistance
The amount of employment or self-employment income you can keep before a benefit is reduced dollar-for-dollar.
Exemptions encourage work but vary, report earnings exactly as your program requires.
Employment Insurance
Temporary income support for birth parents and shared parental leave, with standard or extended payment options.
Choosing standard vs extended changes weekly amounts and total weeks available.
Employment Insurance
Temporary EI payments when you cannot work because of illness, injury, or quarantine and meet insurable hours rules.
Employment Insurance
A one-week period at the start of an EI claim for which no benefits are paid, serving as a deductible week.
Plan for one week without EI income after your claim begins.
Employment Insurance
Temporary income support for eligible workers who lose their job, are sick, on parental leave, or caring for family in defined situations.
EI is usually the first income support after job loss, before longer-term programs apply.
Drug coverage
Saskatchewan's process for covering drugs that are not on the standard formulary, similar to Special Authority elsewhere.
Provincial & territorial
British Columbia's income-based public drug plan with family deductibles and copayments after the deductible is met.
Caregiving
A relative or chosen family member who provides unpaid care to someone with illness, disability, or aging-related needs.
Caregivers may access tax credits, EI caregiving benefits, or respite programs depending on situation and province.
Caregiving
Temporary EI support for eligible caregivers providing end-of-life care to a family member with significant risk of death.
Tax credits
The combined net income of you and your spouse or common-law partner, used to test eligibility for many family benefits.
A partner's income can reduce or eliminate benefits even if your own income is low.
Tax credits
Many federal and provincial benefits require a tax return even if you had no income or owe no tax.
Not filing can stop CCB, GST/HST credit, and other payments automatically.
Disability
The CRA form used to apply for the Disability Tax Credit. A medical practitioner completes the certification portion describing your limitations.
This form is the gateway to DTC approval and many linked benefits.
Drug coverage
The official list of prescription drugs a public or private plan will consider covering, often with conditions on each drug.
A drug can be approved in Canada but still not listed on your plan's formulary.
Disability
A restriction in your ability to perform everyday activities such as walking, remembering, or managing personal care, often described in disability assessments.
Programs often focus on what you can and cannot do, not only on your medical diagnosis.
Tax credits
A quarterly tax-free payment to help low- and modest-income individuals and families offset sales tax.
You generally must file a tax return to receive it, even with no income to report.
Pensions & seniors
A monthly non-taxable top-up for low-income seniors receiving OAS. Amount decreases as other income rises.
GIS is highly income-sensitive, even small pension income can reduce payments.
Housing
A government payment or subsidy that helps low-income households pay rent or housing costs, often at provincial or municipal level.
Social assistance
The requirement to tell your caseworker about earnings, gifts, or household changes so benefits stay accurate.
Failure to report can cause overpayments and penalties even if the underpayment was unintentional.
Income-tested benefits
A benefit or credit whose amount or eligibility depends on how much income you report.
Reporting accurate income on your tax return is often how you apply for these benefits.
Pensions & seniors
Periodic adjustment of benefit payment amounts to reflect changes in the cost of living or program formulas.
Indexed benefits maintain purchasing power but adjustment dates vary by program.
Indigenous supports
Help finding federal, provincial, and community programs for First Nations, Inuit, and Métis people, which may follow different rules than mainstream programs.
Status, band membership, and on- vs off-reserve residence affect which programs apply.
Indigenous supports
Federal department delivering health and social programs for First Nations and Inuit, including NIHB.
Employment Insurance
Hours of work for which EI premiums were paid, counted toward the minimum needed to qualify for benefits.
Part-time or irregular work may make it harder to accumulate enough hours in the qualifying period.
Indigenous supports
A policy to ensure First Nations children can access products, services, and supports they need without jurisdictional disputes causing delays.
Can cover health, social, and educational needs when disputes between governments would otherwise delay help.
Drug coverage
A formulary listing that covers a drug only for specific diagnoses or clinical situations listed by the plan.
Your prescriber must document that you meet the limited-use criteria.
Social assistance
Cash and assets you can quickly convert to cash, such as bank balances and some investments, counted in many assistance programs.
Exceeding asset limits can disqualify you even with low monthly income.
Income-tested benefits
A program that considers your financial resources, usually income and sometimes assets, before paying benefits.
You may qualify for health-related programs but not income support, or vice versa.
Disability
The process a government program uses to review medical evidence and decide whether you meet its disability definition.
Different programs use different definitions, approval for one program does not automatically mean approval for another.
Housing
A federal refundable tax credit for eligible renovations that create a secondary unit for a senior or adult with a disability in your home.
Eligible expenses and family relationships are narrowly defined, keep receipts and contracts.
CRA & Service Canada
Service Canada's online portal for CPP, OAS, EI, and related benefits applications and payment information.
Drug coverage
Federal bilateral agreements covering specific drug categories in participating jurisdictions, alongside provincial pharmacare systems.
National Pharmacare is one pathway within broader public drug coverage, not a replacement for all provincial plans.
Tax credits
Your total income minus specific deductions on your tax return, before some benefit-related adjustments.
Many benefits use net income or a related adjusted amount, not gross pay alone.
Indigenous supports
Federal health benefits, including prescription drugs, for eligible First Nations and Inuit people when not covered elsewhere.
NIHB may cover drugs not on provincial formularies, but has its own formulary and prior approval rules.
Tax credits
A tax credit that reduces the tax you owe but cannot be paid to you as cash if you have no tax payable.
These credits help people who pay tax but may provide little direct cash to very low-income filers.
CRA & Service Canada
CRA's summary of your processed tax return showing income, credits, refund, or balance owing.
Many benefit applications and reassessments use NOA figures as proof of income.
Pensions & seniors
A repayment mechanism that reduces OAS payments when your net income exceeds a yearly threshold.
Seniors with moderate retirement income may lose part or all of OAS through this recovery.
Appeals & applications
A written decision from a government program stating whether you qualify and what you will receive.
MyEligible provides starting points, only the official program's determination is binding.
Provincial & territorial
Ontario program covering many prescription drugs for people under 25 without a private plan, subject to formulary rules.
Pensions & seniors
A monthly pension for people 65 and older who meet residency requirements. It is not based on employment history.
OAS can be reduced or recovered at higher incomes through the OAS recovery tax.
Disability
Ontario's income and employment supports program for people with substantial disabilities who have financial need.
ODSP includes income support, drug coverage, and employment help, rules differ from federal programs.
Provincial & territorial
Ontario's public drug program for seniors 65+, people on social assistance, and others in defined groups.
Social assistance
Ontario's financial assistance program for people in temporary financial need, with employment participation requirements.
Appeals & applications
Benefit money you received but were not entitled to, which the government may recover from future payments or tax refunds.
Report income changes promptly, most overpayments happen when circumstances change and benefits are not updated.
Disability
A temporary refundable tax credit recognizing eligible personal support workers for their work during specified periods.
Eligibility depends on employment type, hours, and income, not general disability status.
Drug coverage
A provincial or territorial public drug insurance program that helps residents pay for prescription medications.
Each province runs its own pharmacare with different deductibles, premiums, and formularies.
Drug coverage
The amount you pay out of pocket for eligible drugs each year before a public plan starts paying its share.
Deductibles are often based on income, lower income can mean lower or no deductible.
Drug coverage
A monthly fee some provincial drug plans charge based on income or family size before drug coverage applies.
Drug coverage
Asking your pharmacist whether a drug is covered on your plan before filling a prescription, especially for expensive medications.
Pharmacists can often see real-time billing results and suggest covered alternatives to discuss with your prescriber.
Disability
A health professional authorized to certify disability for a specific program, for example, a physician for the DTC, or an audiologist for hearing loss.
Using the wrong professional can delay or reject your application.
Drug coverage
A requirement to get plan approval before filling a prescription, common for expensive or restricted drugs.
Disability
An impairment expected to last, or that has lasted, for a continuous period of at least 12 months (or is likely to result in death).
Short-term conditions usually do not meet prolonged impairment tests for major disability benefits.
Provincial & territorial
Extra payment from a province or territory on top of a federal benefit, or a standalone provincial payment for a specific need.
Supplements have separate applications and income tests from federal programs.
Provincial & territorial
Quebec's mandatory prescription drug insurance system through RAMQ or private plans, with premiums and copayments.
Drug coverage
Special federal and provincial processes for expensive drugs treating rare conditions, including Health Canada's common list and province elections.
Standard formulary rules often do not apply, separate applications and clinical criteria apply.
Appeals & applications
A first-level review asking the same agency to look again at your case, often required before a formal appeal.
Submit new evidence during reconsideration, decisions may change without a hearing.
Employment Insurance
A form your employer submits to Service Canada summarizing your insurable earnings and hours when employment ends.
You usually cannot start an EI claim until Service Canada receives your ROE.
Tax credits
A tax credit that can be paid to you even if you owe no tax. If the credit is larger than your tax owing, you receive the difference as a payment.
Refundable credits can provide cash to low-income households that pay little or no income tax.
Disability
A long-term savings plan for people eligible for the Disability Tax Credit. The government may match contributions with grants and provide bonds for low-income beneficiaries.
RDSP grants and bonds can significantly grow savings for future disability-related costs without affecting most federal benefits.
Children & family
A tax-sheltered savings account for a child's post-secondary education, eligible for grants like the Canada Learning Bond and CESG.
Housing
Social housing rent calculated as a percentage of household income rather than market rent.
Wait lists are long, apply early and report income changes to avoid overpayment issues.
General
Rules about how long you must live in Canada or a province to qualify for a benefit or tax credit.
Newcomers and people who moved provinces may need to wait or reapply under new rules.
Appeals & applications
Benefit money paid for past months after a late approval or reassessment, sometimes limited by program rules.
Not all programs pay full retroactivity, ask about limits when you apply late.
Disability
Saskatchewan's income program for people with significant and enduring disabilities who need ongoing financial support.
Pensions & seniors
Federal and provincial programs for older adults, commonly including OAS, GIS, CPP, drug plans, and tax credits.
Enrollment in OAS is often automatic, but GIS and supplements may require application.
General
A professional who helps newcomers understand services, benefits, and applications in their community.
Settlement workers can help with language barriers and complex multi-step applications.
Children & family
When a child lives with each parent at least 40% of the time, benefit rules may split payments between households.
Both parents must file taxes and coordinate CCB sharing rules.
Housing
A portion of social assistance or disability support meant to help pay rent, utilities, or housing costs.
Actual shelter amounts may be capped, rent above the cap is often your responsibility.
Social assistance
Provincial or territorial income support for people with little or no money for basic needs, with strict asset and earnings rules.
Often the last-resort income program, other benefits may reduce assistance dollar-for-dollar.
Appeals & applications
An independent body that hears appeals on CPP, EI, and OAS decisions after earlier review steps.
Drug coverage
Extra approval a prescriber must obtain before a public drug plan will pay for certain medications not routinely covered.
Without approval, you may pay full price even if the drug is listed with conditions.
General
A period when sponsored immigrants may be ineligible for some income programs because their sponsor committed to support them.
Length and affected programs vary, immigration status affects which benefits you can receive.
General
For most federal benefits, your legally married spouse or common-law partner's income and status are combined with yours.
Separation, divorce, or new relationships can change benefit amounts mid-year.
Disability
A standard used in some programs meaning your impairment limits you at least 90% of the time in a basic activity of daily living, even with therapy and devices.
This is a high threshold, partial limitations may not qualify under this specific test.
CRA & Service Canada
The standard Canadian personal income tax return filed with CRA each year.
Most income-tested benefits use T1 information, errors on the return affect benefit amounts.
Tax credits
The calendar year (January 1 to December 31) covered by a specific income tax return.
Benefit amounts often use income from a prior tax year, filing late can delay payments.
Provincial & territorial
Ontario's deductible-based drug program for residents with high prescription costs relative to income and no adequate private coverage.
Employment Insurance
Leaving a job without just cause can disqualify you from EI regular benefits for a period.
EI investigates separations, keep documentation if you left for safety or harassment reasons.
Disability
Rules that let some people earn employment income without losing all disability support, often through earnings exemptions or partial reductions.
Exemption amounts and reporting rules vary widely by program and province.
Caregiving
A child or youth who helps care for a family member with illness, disability, or aging-related needs, often while in school.
Young carers may qualify for supports aimed at caregivers or families, depending on province and situation.
Use these MyEligible tools to explore programs after you understand a term.
Definitions explain common government and program language in plain words. They are starting points for understanding, not legal advice or official eligibility decisions. Confirm important details with the official program, CRA, Service Canada, or a qualified professional.
Glossary reviewed September 13, 2026