Benefits and your income tax return (T5007 income tax form)

A: The T5007 is an official income tax form and is used when completing your income tax return.

The amount in Box 10 of the T5007 is entered on line 144 of your income tax return as part of your net income. This amount is entered on line 250 of your tax return as a deduction from taxable income.

A: Canada Revenue Agency regulations say that the T5007 form is issued to a worker no matter who receives the payments. Payments may be made to others in the following situations:

• Your employer may choose to pay your full wages while you are on compensation so you can continue to build up employment benefits. For example, your employment benefits could include Canada Pension Plan, Employment Insurance and company pension. The WCB then pays the compensation benefits to your employer.
• Payments may have been made directly to your employer for a minor incident even though you lost little or no time from work.
• If payments are made to a public trustee, the T5007 is issued in your name in care of the public trustee. This also applies to payments made to any dependent spouse/child because they are considered the primary payee.

A: No. The amount from Box 10 of the T5007 is reported as income on line 14400 of your income tax return and then as a deduction on line 25000.

You may be allowed an additional deduction depending on how your employer recorded your total employment income on your T4 slip if:

• Your total employment income was recorded as gross wages, you may be allowed an additional deduction equal to the amount paid directly to your employer on line 229 of your tax return. The amount of the deduction should also appear in Box 77 on your T4.
• The amount your employer received from the WCB was deducted from your total employment income, the additional deduction on line 229 is not allowed as it has already been deducted. There will be no entry in Box 77 on your T4.

A: Yes.

A: No. These payments are considered expenses and are not included.

A: No. These are considered expenses.

A: No, these are payments for services and are not considered compensation benefits.

A: If you received a lump sum payout, the amount will be included in your T5007. Joint payouts issued to you and financial institutions to purchase an annuity are not on the T5007.

A: Yes.

A: If there has been an overpayment, the amount of the overpayment is not reduced from the amount on the T5007. The T5007 amount is based on the net cash you received during the year.

A: Please contact our office if you have any questions regarding the change on a previous year’s compensation.

A: The amended T5007 should be sent to the Canada Revenue Agency along with a request for a reassessment of the year on the T5007.