Find out what a T5007 income tax form is, who receives it and what to do with it.
Even though compensation benefits are not taxable, they must be included as net income when you claim certain tax credits and payments on your income tax return.
The T5007 income tax form is a statement issued by the Saskatchewan Workers’ Compensation Board (WCB) that reports total compensation benefits paid to you, or on your behalf, during a calendar year. These benefits include earnings loss replacement, disability payments and survivor benefits. The form is mailed in late February each year.
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 an injured worker no matter who receives the payments. Payments may be made to others in the following situations:
A: No. The amount from Box 10 of the T5007 is reported as income on line 144 of your income tax return and then as a deduction on line 250.
You may be allowed an additional deduction depending on how your employer recorded your total employment income on your T4 slip if:
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: 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.
Note: The above is general information only and is not intended as advice. Please consult your professional tax preparer if you need help or clarification.
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