T5018: Statement of Contract Payments

If you’re a construction subcontractor, you might receive a T5018: Statement of Contract Payments slip reporting the total contract payments made to you by a contractor during the year. These amounts could have been paid or credited to you (by cheque, cash, barter, offset against an amount owing) as a subcontractor for the construction services you provided and might include any GST/HST paid to you.

The T5018 also helps the Canada Revenue Agency (CRA) identify subcontractors who don’t:

  • file returns or report their full income
  • register for GST/HST or
  • report total sales and GST/HST remittances

Note: If you’re a subcontractor and you provided construction services, you might not receive a T5018 for the work completed. That’s because the payer is only required to issue a slip for payments that are $500 or more. Remember, even if you didn’t receive a T5018 slip, it’s still your responsibility to report all of your income to the CRA.

Be sure to keep your T5018 slips with your records in case the CRA asks to see them at a later time. As a rule of thumb, the CRA recommends that you hang on to all of your slips and supporting documents for no less than 6 years after you file your return.

Where do I claim this? 

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

  1. On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled, I worked for myself then select the province or territory of self-employment from the drop-down menu.

  3. Click the EMPLOYMENT icon. You will find yourself here:



  4. Under the BUSINESS AND SELF-EMPLOYMENT INCOME heading, select the checkbox labelled Statement of business or professional activities (T2125) then click Continue.

  5. When you arrive at the Statement of business or professional activities page, enter your information into the tax software.

  6. Click the green Go to page button located at the top of the screen and select Income (or Professional income) on from the available options.

  7. When you arrive at the Let’s enter your professional (or business) income page, enter the income shown on your T5018 slip into the tax software.

 

 

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