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The T5007 is also known as the Statement of Benefits. If you've received any workers' compensation benefits and social assistance payments, then you'll have a T5007 slip waiting in your mailbox. Although workers' compensation benefits aren't taxable, the Canada Revenue Agency (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 them out and where to get the form.
What is a T5007 slip?
Also known as the Statement of Benefits, the T5007 slip reports all the workers' comp benefits or social assistance payments you've received in a calendar year. These benefits include wage-loss replacement, disability payments, and survivor benefits or payments for food, clothing, and shelter requirements. T5007 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 to enter the amount reported in Box 10 of the T5007 on line 14400 as part of your total income in your income tax return, and line 25000 as a deduction to taxable income. According to the CRA, in the case of workers’ compensation benefits, the slip is issued to the injured worker regardless of who receives the payments. In the case of social assistance payments, if the total series of payments in the year total less than $500, a payment is not part of a series of payments, or payments are for things like medical expenses, child care expenses, funeral expenses, legal expenses, job training, or counselling, then a T5007 slip won’t be issued to you. T5007 is a rather short slip. Here's a breakdown of the main parts:
|This is where the total amount of workers' compensation benefits is displayed. This amount is added to the total on line 14400 of your income tax return as total income and line 25000 for deductions made to taxable income.
|This box shows any social assistance payments and provincial or territorial supplements. The amount in this box should be added to the total on line 14500 of your income tax return and 25000 for the deduction.
|This box contains the social insurance number of the recipient of the compensation benefits.
|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 changing the financial 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 listed in the T5007 on line 14400 or lines 14500 and 25000 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 income assistance, disability assistance, senior's supplements, subsidised bus passes, or hardship assistance, you will receive T5007 tax slips for each program if the amount of that program exceeds $500. Taxpayers receiving assistance for hosting more than one child under the CIHR or BCEA assistance will also receive a T5007 slip.
Where can I get my T5007 slip?
T5007 slips are required to have been issued and sent to the recipient by the last day of February. If you're looking for your slip before this date, it might not have been issued.
If you have been issued one or more T5007 slips because you received workers’ compensation benefits and/or more than $500 social assistance payments from a given program, typically the agency who issued the T5007 will mail you a copy of the slip (which will contain three duplicate copies of the slip — you only need to enter the information on your tax return once) or you can access it online from your account with that agency (if applicable) or in your CRA “My Account,” if you have one set up.
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