T5007 slip: line 14400 or 14500, then the same amount off on 25000

Which T5007 box goes on which T1 line?

Box 10 is workers' compensation and goes on line 14400. Box 11 is social assistance or a provincial or territorial supplement and goes on line 14500. Your client then claims the same amount as a deduction on line 25000 canada.ca.

Lines 14400, 14500 and 14600 (net federal supplements) add up on line 14700, and line 25000 is normally the line 14700 amount. A client with net federal supplements on line 14600 may not get the full figure and uses the line 25000 chart on the Federal Worksheet instead canada.ca.

The law behind it is two paragraphs. Paragraphs 56(1)(u) and 56(1)(v) of the Income Tax Act put social assistance (paid on a means, needs or income test) and workers' compensation into income laws-lois.justice.gc.ca. Paragraph 110(1)(f) takes both back out when computing taxable income, but only to the extent they were included laws-lois.justice.gc.ca. For a Quebec client with an RL-5 slip, line 14500 takes the federal part of the RL-5 where that applies canada.ca.

$12,000 of WSIB cuts a single parent's CCB by $263.41

The CRA keeps these payments in net income on purpose, so that benefits and credits are calculated correctly canada.ca. Here's what that means in dollars. Your client is a single parent with one child aged 8. In 2025 they earned $30,000 of employment income and got a T5007 with $12,000 in box 10.

Federal tax is worked out on $30,000, so the WSIB money itself isn't taxed. But the Canada child benefit runs off 2025 adjusted family net income, and for one child it drops by 7% of income above $38,237 canada.ca. Without the T5007, AFNI would be $30,000 and the full $6,883 would be paid. See Canada child benefit 2026 for the full table.

The same net income feeds the Canada Groceries and Essentials Benefit (the renamed GST/HST credit), which uses 2025 AFNI for July 2026 to June 2027 canada.ca. It starts shrinking only above $46,432, so this client keeps the full amount at $42,000 canada.ca. Details are on the GST/HST credit page.

Who reports box 11 when a couple lives together?

The spouse or common law partner with the higher net income reports all of the social assistance, whoever is named on the slip. If the net incomes are equal, the person named on the T5007 reports it. A couple who lived apart each report their own slip canada.ca. This mirrors the wording of 56(1)(u), which includes the payment in the higher income spouse's income laws-lois.justice.gc.ca.

To compare, each spouse works out line 23600 without social assistance (line 14500), child care expenses (line 21400) and the social benefits repayment (line 23500) canada.ca. Payments received before the marriage or common law relationship started stay with the person who received them.

Example: your client's partner is named on a T5007 with $9,000 in box 11. Your client's net income, before those three lines, is $25,000 and the partner's is $4,000. Your client reports the $9,000 on line 14500 and deducts it on line 25000, and the partner reports nothing from that slip canada.ca.

Two carve outs to check before you report anything: certain payments for being a foster parent, or for caring for a disabled adult who lived with your client, don't have to be included. Payments for caring for a spouse, common law partner or related person go to whichever spouse has the higher net income canada.ca.

Does a WSIB advance from the employer go on the T4?

If the employer advances or lends the employee an amount equal to the expected award while the claim is pending, it isn't employment income: no CPP, EI or income tax, and nothing on the T4. In the year the board reimburses the employer, the employee should get a T5007 from the board and reports it like any other box 10 amount canada.ca.

Three cases break that pattern. An advance larger than the award is employment income. If the claim is denied and the advance isn't repaid, the CRA treats it as a benefit from employment in the year the claim is denied, on a T4 with deductions. A top up paid after the claim is accepted goes on the T4 with CPP and income tax withheld, but no EI canada.ca.

When the employer ran the payments through payroll as salary and the employee later repaid the employer, the repaid amount is reported in the other information area of the T4 under code 77 canada.ca. Your client deducts it on line 22900 as an other employment expense canada.ca.

The worker is the T5007 recipient even when an employer or insurer pays the award, and the board should issue the slip for the full benefit awarded canada.ca. Whether your client's business needs coverage at all is covered in Is WSIB mandatory in Ontario.

A retroactive award lands in one year, and that year pays for it

Workers' compensation is reported in the year your client receives it, including retroactive payments for earlier years. The CRA's own example puts a $12,000 lump sum covering 2023 and 2024 on the 2025 return canada.ca. Box 10 includes wage loss replacement, future loss of earnings and periodic survivor payments canada.ca.

The lump sum isn't taxed, but the whole amount swells one year's net income. That's the year the CCB and the groceries benefit look at for the following July to June. The special calculation for retroactive lump sums doesn't rescue it either, because amounts deductible under 110(1)(f) are excluded from it (see the T1198 page).

For a client 65 or older, two more lines feel it. The age amount is reduced using net income on line 23600 canada.ca. The OAS recovery tax starts from line 23400, with a 2025 threshold of $93,454 canada.ca. The line 25000 deduction comes after both lines, so it doesn't help with either. The OAS clawback page has the 2026 figures.

Who files the T5007 return, and by when?

Any provincial, territorial or municipal agency or board, or a similar body, files a T5007 return when it pays social assistance based on a means, needs or income test, or pays workers' compensation. Both the return and the recipients' slips are due on or before the last day of February after the calendar year, moved to the next business day when that falls on a weekend or holiday canada.ca.

Some amounts stay off the slip. For workers' compensation, that's medical expenses, funeral, legal and job training amounts that aren't wages, and death payments other than periodic ones. For social assistance, that's a series of payments totalling $500 or less in the year, medical expenses, and amounts to keep a home available for a foster person canada.ca.

The late filing penalty for T5007 slips runs from a minimum of $100 to a maximum of $7,500 canada.ca. The current fillable slip is on the CRA forms page canada.ca.