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Tax Slips for 2020 and 2021 for Service Providers who received benefits from a Temporary Support Agreement | BC Foster Parents Association

Temporary COVID-19 Supports Income Tax Reporting for 2020 and 2021

The Canada Revenue Agency (CRA) has advised the Ministry of Children and Family Development (MCFD) that those temporary benefits are classified as “social assistance payments” and must be reported on your personal tax return if you receive a T5007 tax slip for benefits received through a Temporary Housing Agreement.

While the benefits remain non-taxable, they must be included on your personal tax return and will affect your reported net income. Net income may be used to determine eligibility for some income-tested tax credits and other government benefit programs such as GST credit, the Canada Child Benefit, or Fair Pharmacare. If you are accessing other government benefit programs, it is recommended that you contact those programs directly for more information.

If you are receiving two slips, please verify the tax year, if applicable, as your T5007 tax slip for 2020 may have been provided separately. Filing your taxes on time will help limit impacts to any provincial and federal benefit programs you may be participating in.

Please see the Frequently Asked Questions for more information on the T5007 tax slip as related to the THA through the Ministry of Children and Family Development. Please contact MCF.Info@gov.bc.ca if you have any questions or concerns.

If you have questions about filing your taxes, please call the Canada Revenue Agency directly at 1-800-959-8281. You may be able to get help filing your taxes through the CRA’s free Community Volunteer Income Tax Program. To learn more, call 1-800-959-8281 or visit this LINK.

Temporary COVID-19 Supports Income Tax Reporting
Frequently Asked Questions for Young Adults and Service Providers
1. What is a T5007 Tax Slip?

The T5007-Statement of Benefits is a tax slip that will help you prepare your personal income tax return. It includes the amount you received in benefits for a specified tax year from the issuing agency.

2. Why is a T5007 Tax Slip issued to me now?
  • 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.
3. What am I expected to do with the T5007?
  • 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.
4. How does a T5007 amount affect my tax return and government benefits?
  • 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.
5. How and when will the T5007 Tax Slips be distributed?
  • 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.
6. Why did I not receive a T5007 Tax Slip when I was a foster parent?
  • 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.
7. Why did I get more than one T5007 Tax Slip?
  • 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).
8. Will I be compensated if there are any tax implications?
  • 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).
9. How can I get a copy of my T5007 Tax Slip?
  • 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.
10. Who can I contact with income tax questions?
  • 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.
11. Who can I contact with questions about the T5007 for benefits received under the Temporary Housing Agreement (THA)?

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

12. Who can I contact with questions about the T5007 for benefits received under the Temporary Support Agreement (TSA)?

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

13. How will this impact Contracted Agencies?

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

Phone

Main:
604-544-1110

Toll-Free Foster Parent Line:
1-800-663-9999

Office hours: 8:30 am - 4:00 pm, Monday to Friday

Foster Parent Support Line (MCFD)​:
1-888-495-4440

Accessible weekdays from 4:00pm to 12:45am
Statutory Holidays & Weekends: 8:00am to 12:45am

EMERGENCY AFTER HOURS

Foster parents are encouraged to call this number in the event of an EMERGENCY or CRISIS occurring after regular office hours:

1-800-663-9122

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If you think a child or youth under 19 years of age is being abused or neglected, you have the legal duty to report your concern to a child welfare worker. Phone 1 800 663-9122 at any time of the day or night. Visit the Government of BC website for more info.

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