If you are receiving Ontario Disability Support Program Income Support, you need to tell your Ontario Disability Support Program worker about money you and your family receive, including money:
- you
- your spouse, and
- your children 18 years of age or older (not attending secondary school full time)
earn from running a business (including self-employment).
When you earn money from running your own business, you can claim some of the business expenses. Under the Ontario Disability Support Program, your profit is the money you earn from your business minus approved business expenses.
The profits you and your family earn are considered income and may reduce your Income Support. Half of your profits are exempt – this means half of your profits do not affect your eligibility or the amount of money you get for Income Support.
You can also claim some of your child care and disability-related work costs as deductions from your profits before they reduce your Income Support.
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There are exceptions
We do not consider the profits of your children if they are under 18 years of age. Their profits are completely exempt. You do not need to tell your worker about their profits from running a business.
If you or members of your family are enrolled full time in an approved post-secondary institution, the post-secondary education earnings exemption may apply to you. If you qualify, your profits are completely exempt.
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Claiming business expenses
You have to claim at least $100 per month in business expenses. This is called the Standard Expense Deduction. You don’t have to provide proof of your business expenses for this deduction.
If your actual business expenses are more, you can claim the full amount of your expenses. You may be asked to provide proof of your business expenses, such as receipts or invoices.
Here are some examples of business expenses that you can claim for deduction:
- supplies
- tools and equipment
- bookkeeping and legal fees
- advertising and business cards
- rent for your place of business (does not include rent for your home).
You cannot claim all of the business expenses that may be allowed under the federal and provincial Income Tax laws. Here are some examples of expenses you cannot claim under the Ontario Disability Support Program:
- wages for employees
- gifts and entertainment
- business losses
- depreciation on business assets
- conferences.
Your worker can help you figure out which business expenses are approved by the program.
It is important to remember that the Ontario Disability Support Program helps you become more financially independent. It’s not meant to support and grow your business.
How profits from running a business affect your Income Support:
1. We look at your profits. This is the money you earn from running a business minus your approved business expenses, such as office supplies and tools.
2. We average these amounts out over the year. For seasonal businesses, we average the amounts out over the number of months the business is running.
3. If your expenses didn’t equal an average of $100 per month, we still deduct the Standard Expense Deduction of $100 per month for business expenses.
4. We calculate half of your monthly profits (50% is exempt).
5. From the amount in step 3, we deduct part or all of your monthly child care and disability-related work costs that you report to us.
6. We subtract the final amount in step 4 from your Income Support.
7. We give you an extra $100 Work-Related Benefit every month your profits are greater than $0.
What you need to report to your worker
You and your family need to report:
- the money you earn from running a business
- your business expenses, and
- your child care and disability-related work costs.
Your worker can tell you how to report this information.
We will use this information to calculate your Income Support. Your worker can help you figure out how your profits affect your Income Support.