Yukon Workers' Compensation Health and Safety Board

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About the T5007 Income Tax Form

What is it?

When will I get my form?

I thought benefits were not taxable, so why a tax form?

What do I do with the T5007?

Why did I receive a T5007 when I didn’t receive any payments from the Workers’ Compensation Board during the year?

Is my taxable income affected when benefits are paid directly to my employer?

Do dependent children receive a T5007 if they are entitled to a monthly allowance?

Are payments for tuition and books included in T5007 slips for injured workers or dependent children?

Does the T5007 include all payments received during the year?

Are lump-sum payouts of an annuity fund included in the T5007?

What if there was an overpayment of benefits?

What do I do if I receive an amended T5007?

Contact the Canada Revenue Agency (CRA) to find out more about preparing your income tax return

If you need further information about your T5007

What is it?

The T5007 statement issued by Yukon Workers’ Compensation Health and Safety Board reports all compensation benefits paid to you or on your behalf during the calendar year.

These benefits include wage-loss replacement, disability payments and survivor benefits.

When will I get my form?

The forms are mailed in late February each year.

I thought benefits were not taxable, so why a tax form?

Though compensation benefits are not taxable, they might affect certain tax credit claims and payments. That’s why these benefits must be included as part of net income.

What do I do with the T5007?

The T5007 is an official income tax form and should be included with your other tax documents to whoever completes your tax return.

If you complete your own taxes, the amount listed in box 10 of the T5007 is entered on your income tax return on line 144 as part of your net income

This amount is then deducted on line 250 of your return to determine taxable income.

Why did I receive a T5007 when I didn’t receive any payments from the Workers’ Compensation Board during the year?

The T5007 is always sent to the injured worker regardless of who receives the payments. Payments may be made to others under several circumstances:

  • Your employer may continue to pay your wages while you are receiving compensation. Yukon Workers’ Compensation then reimburses your employer for the wage-loss benefits you’ve received.
  • If payments are made to a trustee, a T5007 slip would have been issued in your name in care of the trustee. This also applies to any dependent spouse or child, because either is considered to be the primary payee.

Is my taxable income affected when benefits are paid directly to my employer?

No.

The amount from box 10 of the T5007 is reported first, as income on line 144 of your income tax return, and then, as a deduction on line 250.

Your employer is responsible for determining if or how the payments are recorded on your T4 slip. These amounts are dependent upon your particular employment arrangement.

Do dependent children receive a T5007 if they are entitled to a monthly allowance?

Benefits dependent children receive are included in the guardian’s T5007.

Are payments for tuition and books included in T5007 slips for injured workers or dependent children?

No.

These payments are considered expenses and are not included.

Does the T5007 include all payments received during the year?

No.

Some benefits are considered expenses and are not included in Box 10 of the T5007. Some examples include:

  • Clothing allowances
  • Personal care allowances
  • Interest payments
  • Medical expenses
  • Funeral expenses

Are lump-sum payouts of an annuity fund included in the T5007?

Yes.

If you received a lump-sum payout, it will be included in the T5007 if it was paid directly to you (sums under $25,000). If the lump sum is paid to an investment company (sums over $25,000), the T5007 will be issued to the investment company.

What if there was an overpayment of benefits?

If there was an overpayment and it has been repaid to Yukon Workers’ Compensation, the amount on the T5007 reflects that repayment in the year it was made.

If the repayment relates to prior year’s benefits and exceeds the current year’s benefits, the excess will be applied to the previous year and you will receive an amended T5007. You should amend your income tax accordingly.

What do I do if I receive an amended T5007?

The amended T5007 should be submitted to the Canada Revenue Agency along with a request for a reassessment for the year indicated on the T5007.

Contact the Canada Revenue Agency (CRA) to find out more about preparing your income tax return

The Yukon Workers' Compensation Health and Safety Board cannot guarantee the accuracy of the information as it applies to your personal circumstances. We do not have the expertise to provide specific tax, accounting or legal advice about the T5007 form.

Please consult a professional tax or legal advisor or the Canada Revenue Agency with specific questions about the T5007 form.

The Canada Revenue Agency Inquiry line: 1-800-959-8281

Other CRA contact numbers can be found at: Canada Revenue Agency - Telephone Numbers

If you need further information about your T5007

We are happy to answer your questions. Phone: 867-667-5645 or 1-800-661-0443.