The Claims Period is now open. Claimants have until July 27, 2028 to submit a Claim for compensation.
Compensation, taxes and social benefits
If you receive compensation under the Federal Indian Hospitals Settlement, you may have questions about how this payment relates to taxes or government benefits.
This page explains what is known about compensation under the Settlement.
Do I have to pay taxes on my compensation?
No, your compensation payment will not be taxed because compensation paid under the Federal Indian Hospitals Settlement is not considered income.
The Settlement Agreement states that compensation payments are non-pecuniary damages. This means they are intended to recognize harm experienced while admitted to a Federal Indian Hospital.
Will my compensation payment impact my benefits or assistance?
Some Primary Class Members may be receiving government benefits or social assistance, such as:
- Old Age Security
- Canada Pension Plan
- Provincial or territorial income assistance
- Disability benefits
- Housing or other support programs
The Government of Canada will make its best efforts to make sure compensation payments do not affect these benefits.
This includes working with provinces, territories and federal departments responsible for social programs.
Questions about your situation?
Every person’s situation is different. If you receive government benefits and have questions about how compensation may affect you, you may wish to speak with:
- A financial advisor
- A tax professional
- A lawyer
They may be able to explain how compensation could relate to your personal circumstances.
If you have questions about the Federal Indian Hospitals Settlement or the Claims Process, you can contact the Information Line at 1-888-592-9101.
