This is because the amount from T5007 will be added to the net income. The Canada Revenue Agency (CRA) does not tax them, but it takes them into account when determining your eligibility for benefits such as the Canada Child Benefit, the Old Age Security supplement, and several others.
Since these payments are not taxable, you need to deduct them on line 25000 before you reach the amount of the taxable income. However, if you received the payments on behalf of a foster person living with you, in most cases, you do not have to report them.
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