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The T5007 is also know as as a Statement of Benefits. If you've received any compensation benefits and social assistance payments, then you'll have a T5007 slip waiting in your mailbox. Although compensation benefits aren't taxable, the CRA still expects these payments to be reported accurately. Here's a brief review of all the essential things to know about T5007 slips, including who should fill out and where to get the form.
What Is a T5007 Slip?
Also known as Return of Benefits, the T5007 slip reports all the benefits or assistance payments you've received in a calendar year. These benefits include wage-loss replacement, disability payments, and survivor benefits. T5007 actually features three different slips, and is issued to recipients of the benefits by the entity delivering the assistance payments or benefits.
If you're an individual who has received a T5007 slip, then you have enter the amount reported in Box 10 of the T5007 on line 144 as part of your net income in your income tax return, and line 250 as a deduction to taxable income. According to the CRA, the slip is issued to injured workers regardless of who receives the payments. However, only taxpayers that received more than $500 in provincial benefits, such as senior bus passes and supplements, have to submit it. T5007 is a rather short slip. Here's a breakdown of the main parts:
| Box | Meaning |
|---|---|
| Box 10 | This is where the total amount of workers' compensation benefits is displayed. This amount is added to the total in line 144 of the income tax as net income and line 250 for deductions made to taxable income. |
| Box 11 | This box shows any social assistance payments and provincial or territorial supplements. The amount in this box should be added to the total in line 145 of the income tax return and 250 for the deduction. |
| Box 12 | This box contains the social insurance number of the recipient of the compensation benefits. |
| Box 13 | This section is for the report code, which determines if your slip is original, amended, or cancelled. "O" will indicate that the slip is original, "A" that it's amended such as afinancial data or identification details) and "C" indicates that the slip is cancelled. If A or C is entered, a description will be included at the top of the T5007. |
Who Should Fill Out a T5007?
If you've received benefits, the T5007 will be filled out by the entity paying out those benefits, and then sent to you. The CRA requires all recipients of benefits above $500 to include the amounts listen in the T5007 in lines 144 and 250 of the federal income tax return. You can receive more than one T5007 if you get benefits from different programs. For instance, if you receive disability assistance, senior's supplement, bus pass for seniors, or hardship assistance, you will receive T5007 tax slips for each program if the amount exceeds $500. Taxpayers receiving assistance for hosting more than one child under the CIHR or BCEA assistance will also receive a T5007 slip. The CRA expects filling of a T5007 for all provincial, territorial, municipal agencies and boards, or like bodies if:
They make payments towards social assistance based on a means, needs, or income test
Under the compensation law for injury, disability, or death, they make payments to a recipient of workers' compensation benefits.
Adjudicate claims that determine individuals entitled to compensation under the compensation law for injury, disability, or death.
Those filling T5007 are expected to report specific benefits, identified in paragraphs 56(1)(u) and 56(1)(v) of Income Tax Regulations. These paragraphs define social assistance payments and workers' compensation benefits recipients should report. Here are popular examples for both categories:
Workers' compensation – Features payments made for an injury (including wage-loss caused by the injury), disability (wage-loss plus loss of future earnings) and death (survivor benefits and wage-loss replacement).
Social assistance benefits – Includes payments made to individuals or third-parties based on the needs, means, or income test. It comprises food, clothing and shelter, including rental or mortgage, training and counseling, provided the payment isn't part of a wage-loss replacement or survivor benefits.
Where Can I Get a T5007
You can get your form by going to CRA My Business Account and navigating to the T5007, which appears alongside other taxpayer slips.
Another option is to download all your T5007 slips, print, complete the necessary information and mail them to CRA tax centers. Whichever method you choose, make sure you submit your slips on time. The CRA expects all complete T5007 slips to be submitted before the last day of February in the year following the taxation year. Late and missed submissions will be subject to penalties in the range of $100 to $7,500.
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