Tax Slips for 2020 and 2021 for Service Providers who received benefits from a Temporary Support Agreement

• At the onset of the COVID-19 pandemic, the Ministry of Children and Family Development (MCFD) acted quickly to implement two short-term emergency programs – the Temporary Housing Agreement (THA) and Temporary Support Agreement (TSA) – to support the immediate needs of youth aging out of care.
• You received benefits through a Temporary Support Agreement, Agreement with Young Adults, Youth Agreement and/or Temporary Housing Agreement program(s).
• Anyone who receives a T5007 tax slip for benefits received through the THA/TSA must report this income on Lines 14500 and 25000 of their personal income tax return.
• Young adults and service providers affected by the COVID-19 pandemic who received these temporary benefits must report them as received in the calendar year on their annual income tax return.
• The ministry issued T5007 tax slips as quickly as possible after being made aware they were required.

• Amounts on your 2020-T5007 tax slip must be reported on your 2020 tax return.
• If you previously filed a 2020 personal income tax return, you are required to file an updated 2020 personal income tax return.
• Amounts on your 2021-T5007 tax slip must be reported on your 2021 personal income tax return.
• Report the social assistance income on line 14500.
• You will deduct the same amounts on line 25000 before you reach your taxable income.

• While the benefits remain non-taxable, they must be included on your personal income tax return and may be used for purposes of determining eligibility for certain income-tested tax credits and other government benefit programs.
• When applying or calculating government tax credits and/or benefit programs, such as GST credits, Canada Child Benefit, or Fair Pharmacare, these programs will use the information reported on your return to determine program eligibility and assessing benefits receivable.
• The impact of the reporting will be unique for each taxpayer.
• You are encouraged to seek out support with specific income tax questions (see question 10).
• If you are accessing other government tax credit and/or benefit programs, please contact those programs directly with any questions.

• T5007 tax slips for recipients of the Temporary Housing Agreement (THA) have been sent in the mail.
• Where applicable, two separate envelopes have been provided: one with the 2020-T5007 tax slip and the other with the 2021-T5007 tax slip.
• Recipients of the Temporary Support Agreement (TSA) will be contacted directly by their Social Worker.

• Foster parents providing services under the Child Family and Community Service Act (CFCSA) have an exemption applied under the Income Tax Act as they are paid in accordance with the CFCSA.
• That exemption ended when the youth in care turned 19.
• Under the THA/TSA agreements, young adults are no longer considered in care and foster parents are considered service providers.
• As service providers, income-reporting exemptions that apply to foster parent maintenance payments no longer apply to THA payments.

• If you received benefits through the THA/TSA in 2020 and/or 2021, you will receive a separate T5007 tax slip for each tax year.
• T5007 tax slips received from MCFD are specific to the benefits received through a Temporary Support Agreement, Agreements with Young Adults, Youth Agreement and/or Temporary Housing Agreement program(s).

• When the COVID-19 pandemic hit, the ministry acted quickly to support youth through a number of emergency benefits.
• Our goal was to get these supports to youth as early as possible.
• Unfortunately, the ministry cannot provide compensation for any tax adjustments that may result from this CRA reporting requirement.
• You are encouraged to seek out support with specific income-tax questions (see question 10).

• You can obtain a reprint of your T5007 tax slip by calling the Ministry of Children and Family Development Financial Services Help Desk at: 1 (866) 823-5856 or by emailing: MCFFinanceCASSupport@gov.bc.ca
• You may not need a physical T5007 tax slip to file your personal income tax return.

• Contact the CRA directly at 1 800-959-8281, or seek independent financial advice.
• The Government of Canada’s Community Volunteer Income Tax Program may be available to help you file your tax returns in certain situations. Contact: 1-800-959-8281 or visit this LINK.

Please contact MCF.Info@gov.bc.ca if you have any questions or concerns.

Please contact your Social Worker or visit AgedOut.com for more information.

Contracted agencies will not receive a T5007 and they are responsible for their own corporate tax filing.