Transfer payments are not earnings, but they are part of personal income. We do not have to perform any service for transfer payment income, but we have to meet certain requirements. In most cases, the recipient must pay income tax on transfer payments.

Transfer payments can include
  • Old Age Security (OAS),
  • Employment Insurance (EI) benefits,
  • Canada Pension Plan (CPP),
  • welfare benefits,
  • Universal Child Care Benefit,
  • Canada Child Tax Benefit (tax-free),
  • Goods and Services Tax credits,
  • disability tax credits,
  • Guaranteed Income Supplement,
  • lottery winnings, and
  • gifts.