Line 14400 – Workers' compensation benefits
Workers' compensation benefits are compensation paid in respect of an injury, disability, or death to a worker, under the law of Canada or a province or territory. These amounts are shown on a T5007, Statement of Benefits, and include:
- benefits that are a wage-loss replacement for time lost from employment due to a compensable injury or condition
- a wage-loss replacement income paid to an injured worker who suffered a partial, total, temporary, or permanent disability as a result of a work-related accident
- compensation for future loss of earnings made to an injured worker who suffers from an injury resulting in permanent impairment or temporary disability
- survivor benefits that are periodic payments to a dependent spouse or common-law partner, dependent children, or orphans
- wage-loss replacement income periodically paid to a surviving spouse or common-law partner to replace the income that a worker who died in a work-related accident or as a result of an industrial accident would have earned
Repayment of workers' compensation benefits
I had to pay back my employer for the amount of workers' compensation I received while I was off. My T4 shows both the work income and the WCB. I shouldn't have to pay tax on both of them. What do I do with the T5007 I got?
Report the amount in box 10 of your T5007 slip on line 14400 of your return.
At line 25000 of your tax return, take an offsetting deduction for the amount shown in box 10 of your T5007 slip. Your workers' compensation benefits will be subtracted from your taxable income. Include the T5007 slip with your paper return.
Report the amount shown in box 14 of your T4 slips on line 10100 of your income tax and benefit return.
At line 22900 deduct the amount of the WCB award repaid to your employer that was included in your income (on your T4 slip).
This amount is not taxable, but you must still report the income on your tax return to ensure that any benefits you may be entitled to are calculated properly. These benefits include the Old Age Security, Guaranteed Income Supplement, the goods and services tax/harmonized sales tax credit (GST/HST) credit, and the Canada Child Benefit, as well as certain provincial or territorial tax credits and non-refundable tax credits.
Completing your tax return
On line 14400, enter the amount from box 10 of your T5007 slip. Claim a deduction on line 25000 for the benefits you entered on line 14400.
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