INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Adult Support payments Other terms used may be Client: Non-Exempt Pension
Spousal Support, Spousal
Maintenance or Alimony Cohabiting Partner: Partial
Exemption
AISH received by a cohabiting Fully Exempt N/A
partner
AISH/Widows’ Pension/Income Assets purchased with this Fully Exempt N/A
Support Class Action Lawsuit money are considered exempt.
compensation However, interest earned from
this money is not exempt.
X-reference: Investment Income:
Interest
Alberta Family Employment Tax A program funded by the Fully Exempt N/A
Credit (AFETC) Government of Alberta to help
working families provide for their
children. See:
www.finance.gov.ab.ca/business
/tax_rebates/alberta_family_emp
loyment_taxcredit.html for further
information.
Alberta Seniors Benefit (ASB) Normally a client cannot receive Client: Non-Exempt (in Pension
AISH and the ASB at the same unusual cases when a client is
time. The exception is clients over 65 years of age, on AISH,
who are over 65 years of age but but has not been in Canada
have not been in Canada long long enough to be eligible for
enough to be eligible for Old Age OAS).
Security (OAS).
Cohabiting Partner: Fully
Exempt
Annuity: Non-pension Partially Exempt Passive Business
Annuity: Pension related Client: Non-exempt Pension
Cohabiting Partner: Partial
Exemption
1
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Annuity: Structured Settlement A structured settlement is used Fully Exempt N/A
to satisfy personal injury claims.
The person receiving payments
from a structured settlement will
receive their settlement money
over a period of time rather than
as a lump sum.
To establish a structured
settlement, a casualty insurer
purchases an annuity from a
federally-registered Canadian life
insurer. This life insurer
guarantees to provide the person
receiving the settlement with
periodic payments for a specified
period. Each payment is tax free
and is a combination of capital
and interest.
The key to recognizing an
annuity as a structured
settlement is that the annuity will
be owned by the life insurer,
NOT the client or their cohabiting
partner.
Award or prize given in recognition of Fully Exempt N/A
outstanding academic or community
achievement
Award or prize for employment Employment Exemption Employment
achievement
Band Payments: Cash Gifts Fully Exempt N/A
See also: Gifts
2
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Band Payments: Gifts in Kind Non-cash gifts such as food or Fully Exempt N/A
food vouchers, food hampers,
See also: Gifts toys given to children or other
consumables
Business Income To calculate net self-employment Employment Exemption Self-employment
income, AISH uses the allowable
Canada Revenue Agency (CRA)
deductions and expenses
Canada Child Tax Benefit Benefit under the Income Tax Fully Exempt N/A
Act
Child support received by an AISH Also known as Child Fully Exempt N/A
client for the benefit of a dependent Maintenance
child
Child support for the benefit of an Fully Exempt N/A
AISH client over age 18
Child Disability Benefit Supplement to the Canada Child Fully Exempt N/A
Tax Benefit under the Income
Tax Act
Children’s Services payments: Under Includes Foster Care rates, Child Fully Exempt N/A
the Child, Youth and Family Financial Support payments, skill
Enhancement Act fees and special rates
Cost-of-living (COLA) increase Fully Exempt N/A
between January 1, 1989 and
December 31, 1990: Spouse’s
Allowance; CPP; War Veterans
Allowance; Civilian War Pension
Canada Pension Plan (CPP): CPP income is considered at the Client: Non-Exempt Pension
Children’s Benefits (orphan/disabled gross amount because tax
child) for AISH clients 18 to 25 deductions from the monthly Cohabiting Partner: Partial
benefits are voluntary. Exemption
3
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
CPP: Children’s Benefits Fully Exempt N/A
(orphan/disabled child) received by
an AISH client on behalf of their
dependent child
CPP: Death Benefit Fully Exempt N/A
CPP: Disability CPP income is considered at the Client: Non-Exempt Pension
gross amount because tax
deductions from the monthly Cohabiting Partner: Partial
benefits are voluntary. Exemption
CPP: Retirement CPP income is considered at the Client: Non-Exempt Pension
gross amount because tax
deductions from the monthly Cohabiting Partner: Partial
benefits are voluntary. Exemption
CPP: Survivor’s CPP income is considered at the Client: Non-Exempt Pension
gross amount because tax
deductions from the monthly Cohabiting Partner: Partial
benefits are voluntary. Exemption
Crime Compensation Board Payments made to an AISH Fully Exempt N/A
payments client under the Victims of Crime
Act (Alberta)
Deferred Profit Sharing Employment Exemption Employment
Dependent Child income Income earned by an AISH Fully Exempt N/A
client’s dependent child (e.g.
employment or investment)
Direct to Household Rent A subsidy paid directly to an Fully Exempt N/A
Supplement eligible tenant to assist with their
rental costs. Funding is from *designated by the Minister as
Alberta Housing and Urban an exempt payment under
Affairs. Schedule 1, Table 1, section
1(l) of the AISH General
Regulation
4
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Employment Income Employment Exemption Employment
Employment Income of a Treaty This income is not reportable to Employment Exemption Employment
Indian earned on Reserve the CRA but is included in the
definition of income in the AISH
General Regulation.
Employment Insurance (EI) Employment Insurance is a Client: Non-Exempt Pension
Government of Canada
program that provides Cohabiting Partner: Partial
temporary financial assistance Exemption
for unemployed Canadians
while they look for work or
upgrade their skills. Canadians
who are sick, pregnant or caring
for a newborn or adopted child,
as well as those who must care
for a family member who is
seriously ill with a significant risk
of death, may also be assisted
by Employment Insurance.
Farming Income Employment Exemption Employment
Federal Extraordinary Assistance The Federal Extraordinary Fully Exempt N/A
Plan (Federal HIV settlement) Assistance Plan was a one-
time, tax-free benefit of *designated by the Minister as
X-reference: Investment Income: $120,000, which the federal an exempt payment under
Interest government paid to people with Schedule 1, Table 1, section
hemophilia who became 1(l) of the AISH General
infected with HIV as a result of Regulation
receiving blood or blood
products in Canada.
Assets purchased with this
money are considered exempt.
However, interest earned from
this money is not exempt.
5
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Fishing Income Employment Exemption Employment
Gifts: Cash or Goods in Kind Fully Exempt N/A
Gifts: Payments made directly to a Fully Exempt N/A
vendor or service provider on behalf
of a client
Grants: Education or training grant, Fully Exempt N/A
an artist grant, or a grant to start a
business
Grants: Home renovation or repair Money received for home Fully Exempt N/A
renovation or repairs from the
Government of Canada,
Government of Alberta or from a
community service organization.
Guaranteed Income Supplement The Guaranteed Income Client: Not eligible for AISH if Pension
(GIS) Supplement provides additional receiving OAS and/or the GIS
money, on top of the Old Age
Security (OAS) pension, to low- Cohabiting Partner: Partial
income seniors living in Exemption
Canada.
Hepatitis C Settlement Agreement Includes settlement payments Fully Exempt N/A
by the Government of Canada
X-reference: Investment Income: from both the January 1, 1986 *designated by the Minister as
Interest to July 1, 1990 class action an exempt payment under
(other than a payment under Schedule 1, Table 1, section
section 4.02 of that Agreement 1(l) of the AISH General
for loss of income or a payment Regulation
under section 6.01 of that
Agreement for loss of support
resulting from the death of an
infected person) and the pre-
1986/ post-1990 class action.
Continued…
6
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Assets purchased with this
money are considered exempt.
However, interest earned from
this money is not exempt.
Homeless and Eviction Prevention The Homeless and Eviction Fully Exempt N/A
Fund (HEP) payments Prevention Fund is part of the
Government of Alberta’s *designated by the Minister as
response to the an exempt payment under
recommendations of the Schedule 1, Table 1, section
Alberta Affordable Housing 1(l) of the AISH General
Task Force. The HEP fund is Regulation
designed to provide short-term
assistance to prevent Albertans
from becoming homeless and
to help individuals and families
to stabilize their shelter
arrangements.
Honoraria Token of appreciation paid to Fully Exempt N/A
an individual for a community
service performed. Generally
received on a one time or an
occasional basis.
Income Tax Refunds Fully Exempt N/A
Indian Residential School Assets purchased with this Fully Exempt N/A
Compensation money are considered exempt.
However, interest earned from *designated by the Minister as
X-reference: Investment Income: this money is not exempt. an exempt payment under
Interest Schedule 1, Table 1, section
1(l) of the AISH General
Regulation
Inheritances Interest earned from this Fully Exempt N/A
money is not exempt.
X-reference: Investment Income:
Interest
7
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Insurance: Life Insurance Interest earned from this Fully Exempt N/A
money is not exempt.
X-reference: Investment Income:
Interest
Insurance: Income Protection Plans Benefits received from income Fully Exempt N/A
protection plans owned by the
X-reference: Investment Income: client or cohabiting partner
Interest (e.g. the client or cohabiting
partner has paid the premiums
for the policy).
Interest earned from this
money is not exempt.
Insurance: Long Term Disability Disability insurance where the Employment Exemption Employment
Insurance (LTDI) employer has paid all or the
employer and employee have
X-reference: Interest shared in the cost of the
premiums for the policy.
Interest earned from this
money is not exempt.
Insurance: Global Settlement An award or settlement for a Fully Exempt N/A
personal injury claim. This may
X-reference: Interest include compensation for pain
and suffering, loss of income,
reimbursement of expenses
related to the injury, etc.
Interest earned from this money
is not exempt.
Insurance: Replacement of damaged Interest earned from this money Fully Exempt N/A
or stolen property is not exempt.
8
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
X-reference: Interest
Investment Income: Bonds Money lent to the government Partially Exempt Passive Business
or a company with repayment of
the principal and interest set out
in the terms of the bond.
E.g. Canada Savings Bond,
Secured Bonds, Debentures,
etc.
Investment Income: Capital Gains Income earned when shares or Partially Exempt Passive Business
property are sold at a higher
price than that at which they
were purchased. Common
types of capital financial
investments include stocks and
bonds or mutual funds.
Common types of capital
property include cottages, rental
properties, jewellery, or stamp
collections.
Investment Income: Dividends Represents a portion of the Partially Exempt Passive Business
company profit. May be paid
periodically to shareholders.
Investment Income: Interest Partially Exempt Passive Business
Investment Income: Mutual Funds A pool of investors’ money Partially Exempt Passive Business
managed and invested by an
investment advisor
Investment Income: Stocks Shares in a company Partially Exempt Passive Business
X-reference Investment Income:
Dividends and/or Investment Income:
Capital Gains
9
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Japanese Canadian Redress Compensation payment from Fully Exempt N/A
Agreement the federal government
*designated by the Minister as
X-reference: Investment Income: Assets purchased with this an exempt payment under
Interest money are considered exempt. Schedule 1, Table 1, section
However, interest earned from 1(l) of the AISH General
this money is not exempt. Regulation
Land Claim settlements Examples include: Siksika First Fully Exempt N/A
Nation settlement agreement,
Cold Lake (Primrose Lake)
Specific Claim, etc.
Land Lease for oil/mineral exploration Employment Exemption Self-employment
Learner funding through Alberta Includes: Integrated Training, Employment Insurance (EI) N/A
Works Income Support Academic Upgrading, English and non-EI Learners are
as a Second Language, Adult treated differently with respect
Basic Education, University and to AISH and Income Support
Technical Institute preparation, because EI Learners are
Occupational training (less than funded federally, whereas non-
1 year duration), Skills for Work EI Learners are not.
training Non-EI Learners (client/
cohabiting partner) cannot
receive both AISH and Income
Support for their monthly
financial assistance. The
household must choose one
program.
If the client/cohabiting partner
remains on AISH, Income
Support can only cover tuition,
books, supplies and mandatory
fees. These items are fully
exempt.
10
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
EI-funded Learners, however,
may remain active on AISH
because their Learner benefits
are considered grants for
educational/training purposes
(AISH Reg. Schedule 1, Table
1, 1(i)). In these cases, AISH
benefits continue, but are
treated as income by AE&I and
the Learner benefits are
adjusted accordingly.
Life Income Fund (LIF) An RRSP may be converted or If reported on CRA line 115: Pension
rolled-over into a LIF. This Client: Non-exempt
allows the investment to
continue to grow in the fund Cohabiting Partner: Partially
income tax free. Exempt
The federal government If reported on any other CRA Passive Business
requires a specific amount be line: Partially Exempt
withdrawn from the investment
each year.
The client is required to report
this income on CRA line 115 if
they are 65 years old on
December 31st of the given tax
year OR if they received the LIF
income because their spouse or
common law partner died.
In all other cases, income from
a LIF is reported on line 130.
Mileage Rates The mileage rate that Canada Employment Exemption Employment
Revenue Agency considers
“reasonable” is not reported as
11
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
income and is not taxable.
Rates above the reasonable
level must be reported as
income and the entire amount
is fully taxable. CRA sets the
“reasonable” rate annually. For
updated rates, see
http://www.cra-
arc.gc.ca/tx/bsnss/tpcs/pyrll/bnf
ts/tmbl/llwnc/nntx-eng.html
Northern Living Allowance Employment Exemption Employment
Oil and Mineral Royalties Partially Exempt Passive Business
Old Age Security (OAS) Federal pension provided for Client: Client is not eligible for N/A
persons 65 years and older. AISH if receiving OAS
Pension
Cohabiting Partner: Partially
Exempt
OAS: Allowance Client: Non-exempt Pension
Cohabiting Partner: Partially
Exempt
OAS: Allowance for the Survivor Client: Non-exempt Pension
Cohabiting Partner: Partially
Exempt
OAS: Guaranteed Income See Guaranteed Income
Supplement Supplement
Partnership Income Partially Exempt Passive Business
Pension Client: Non-Exempt Pension
Cohabiting Partner: Partially
12
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Exempt
Pension: Treaty Indian tax-exempt Client: Non-Exempt Pension
pension income
Cohabiting Partner: Partially
Exempt
Professional Income To calculate self-employment Employment Exemption Self-Employment
income, AISH uses the
allowable CRA deductions and
expenses.
Quebec Pension Plan (QPP) Client: Non-exempt Pension
Cohabiting Partner: Partially
Exempt
Registered Retirement Savings Plan Fully Exempt N/A
(RRSP) withdrawals
Registered Retirement Income Fund A RRSP may be converted or If reported on CRA line 115 Pension
(RRIF) rolled over into a RRIF. This Client: Non-Exempt
allows investment income to
continue to grow in the fund Cohabiting Partner: Partially
income tax free. The federal Exempt
government requires a
specified amount to be If reported on any other CRA Passive Business
withdrawn from the investment line: Partially Exempt
every year.
The client is required to report
this income on CRA line 115 if
they are 65 years old on
December 31st of the given tax
year OR if they received the
LIF income because their
spouse or common law partner
13
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
died.
In all other cases, income from
a LIF is reported on line 130.
Remote Area Heating Allowance Fully Exempt N/A
Rental Income Includes income generated Partially Exempt Passive Business
from rental properties, a
principal residence and room
and board.
Resource Rebate for all Albertans Fully Exempt N/A
Retirement Compensation A plan or arrangement between Client: Non-Exempt Pension
Arrangement an employer and employee
under which contributions are Cohabiting Partner: Partially
made by the employer to a Exempt
custodian and the custodian
may be required to make
payments to the employee or
another person on, after, or in
view of, the employee’s
retirement, loss of office or
employment or any substantial
change in the services an
employee provides.
Saskatchewan Pension Plan Client: Non-Exempt Pension
Cohabiting Partner: Partially
Exempt
Scholarship or bursary used for Fully Exempt N/A
educational purposes at a school or
educational establishment
Self-Employment income Employment Exemption Self-Employment
Severance Pay Also known as a Retiring Employment Exemption Employment
14
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Allowance
An amount paid to employees
when or after they retire from
employment in recognition for
long service or for the loss of
employment
Sheltered Workshop income Employment Exemption Employment
Sponsorship value Not reportable to CRA but Non-Exempt N/A
considered income by AISH.
Sterilization Settlement payments Fully Exempt N/A
X-reference: Investment Income: *designated by the Minister as
Interest an exempt payment under
Schedule 1, Table 1, section
1(l) of the AISH General
Regulation
Structured Settlement See Annuity: Structured Fully Exempt N/A
Settlement
Student Loan Fully Exempt N/A
Training Allowance Employment Exemption Employment
Trust income A trust in a client or cohabiting Partially Exempt Passive Business
partner’s name and the income
is reportable to the CRA
Trust Income: Deemed by AISH to Generally, if the trust has been Partially Exempt Passive Business
have been paid to a beneficiary deemed an asset, only the
interest will be considered
income. (See Investment
15
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Income: Interest)
Not reportable to CRA but is
considered income by AISH.
Universal Child Care Benefit (UCCB) The UCCB is a Government of Fully Exempt N/A
Canada program designed to
help Canadian families, as they *designated by the Minister as
try to balance work and family an exempt payment under
life, by supporting their child Schedule 1, Table 1, section
care choices through direct 1(l) of the AISH General
financial support. The UCCB is Regulation
for children under the age of 6
years and is paid in
installments of $100 per month
per child.
Utility credits, refunds and/or rebates A grant or credit paid directly or Fully Exempt N/A
indirectly from the Government
of Canada or a provincial
government that is designed to
protect consumers from high
energy costs.
Veteran’s Affairs: Compensation due Includes the following: Civilian Fully Exempt N/A
to disability or death due to war War Pension, Merchant Navy
service Veteran’s Compensation, War
Veteran’s Allowance. Pension
payments may be made to the
veteran or their surviving
spouse or surviving child.
The age limits to be considered
a child are outlined in section
34 of the Pensions Act
http://laws.justice.gc.ca/en/sho
wdoc/cs/P-6/bo-ga:l_III-
16
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
gb:s_34//en#anchorbo-ga:l_III-
gb:s_34
Note: Since the implementation
of the New Veteran’s Charter on
April 1, 2006, Canadian Forces
(CF) Veterans and CF members
generally receive their disability
benefits in the form of a lump-
sum payment through the
Disability Award Program. See
http://www.vac-
acc.gc.ca/clients/sub.cfm?source=fo
rces/nvc/programs/da
for further information.
Veteran’s Affairs: Financial Benefits Includes the following: Client: Non-Exempt Pension
Earnings Loss Benefit,
Permanent Impairment Cohabiting Partner: Partially
Allowance and Supplementary Exempt
Retirement Benefit. See
http://www.vac-
acc.gc.ca/clients/sub.cfm?sour
ce=forces/nvc/programs/fb for
further information.
Winnings (cash) from lotteries or Fully Exempt N/A
other games of chance
Worker’s Compensation Board Client: Non-Exempt Pension
(WCB) benefits
Cohabiting Partner: Partially
Exempt
WCB: Payments made under the Lump sum payments made to Fully Exempt N/A
Special Payment Act the Disenfranchised Widows
group.
X-reference: Investment Income:
17
INCOME TYPE EXEMPTION TABLE
Income Type Notes AISH Exemption CRA Income Category
Interest Assets purchased with this
money are considered exempt.
However, interest earned from
this money is not exempt.
18