General Income Tax and Benefit Guide - 2017 - Total income

Step 2 –Total income

Calculation of total income (page 2 of your return)

You have to report as income most amounts you received in 2017. As a resident of Canada, you have to report your income from all sources, inside and outside of Canada.

Amounts that are not taxed

You do not have to report certain amounts as income, including the following:

  • any GST/HST credit and CCB payments, including those from related provincial or territorial programs;
  • child assistance payments and the supplement for handicapped children paid by the province of Quebec;
  • compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
  • most lottery winnings;
  • most gifts and inheritances;
  • amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
  • most amounts received from a life insurance policy following someone's death;
  • most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership;
  • elementary and secondary school scholarships and bursaries;
  • post-secondary school scholarships, fellowships, and bursaries are not taxable if you received them in 2017 for your enrolment in a program that entitled you to claim the full-time education amount in 2016, or if you are considered a full-time qualifying student for 2017 or 2018; and

    Note
    Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.
     
  • most amounts received from a tax-free savings account (TFSA). For more information, go to the Tax-free savings account, or see Guide RC4466, Tax Free Savings Account (TFSA), Guide for Individuals.

Report foreign income and other foreign amounts

Report foreign income and other foreign amounts (such as expenses and foreign taxes paid) in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the income or paid the expense. If the amount was paid at various times in the year, visit Bank of Canada or contact the CRA for an average annual rate.

Tax Tip

If you paid foreign taxes on foreign income you received, do not reduce the amount you report by the amount of tax the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. For more information, see Form T2209, Federal Foreign Tax Credits, and Form T2036, Provincial or Territorial Foreign Tax Credit.

Retroactive lump-sum payments

If you received a lump-sum payment of eligible income in 2017, parts of which were for previous years after 1977, you must report the whole payment on the appropriate line of your return for 2017.

We will not reassess the returns for previous years to include this income. However, you can ask us to tax the parts for previous years as if you received them in those years. We can apply this calculation to the parts that relate to years throughout which you were resident in Canada if the total of those parts is $3,000 or more (not including interest) and the result is better for you.

Eligible income includes:

  • employment income and damages for loss of employment received by order or judgment of a competent tribunal, as an arbitration award, or under a lawsuit settlement agreement;
  • periodic pension benefits, which do not include Canada Pension Plan or Quebec Pension Plan benefits (see line 114);
  • wage-loss replacement plan benefits;
  • support payments for a spouse, common-law partner, or child;
  • employment or unemployment insurance benefits; and
  • Canadian Forces members and veterans income replacement benefits.

To ask us to apply this calculation, attach to your paper return all completed copies of Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment, you have received. We will tell you the result on your notice of assessment or reassessment.

Loans and transfers of property

You may have to report income, such as dividends (line 120) or interest (line 121), from property (including money and any replacement property) you loaned or transferred to your spouse or common-law partner, child, or other relative. You may also have to report capital gains (line 127) or losses from property you loaned or transferred to your spouse or common-law partner.

For more information, see interpretation bulletins IT-510, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor, and IT-511, Interspousal and Certain Other Transfers and Loans of Property.

Split income of a child under 18

Certain income of a child who was born in 2000 or later is not subject to the rules discussed in the previous section. A special tax of 33% applies to the following amounts received directly from or through a trust (other than a mutual fund trust) or partnership:

  • shareholder benefits relating to shares not listed on a designated stock exchange; and
  • dividends from shares (not including those in a mutual fund corporation or listed on a designated stock exchange).

Note

A child under 18 years of age may be subject to the tax on split income for dividends on shares of a corporation. Any taxable capital gain from the disposition of those shares to a person who does not deal at arm's length with the child will be deemed to be a dividend. This deemed dividend is subject to the tax on split income and is considered to be an "other than eligible dividend" for the purposes of the dividend tax credit.

The above also applies to income from a trust (other than a mutual fund trust) or partnership for providing property or services to (or in support of) a business operated by:

  • someone related to the child at any time in the year;
  • a corporation that has a specified shareholder who is related to the child at any time in the year; or
  • a professional corporation that has a shareholder who is related to the child at any time in the year.

The special tax also applies to the income of a child from a partnership or trust (other than a mutual fund trust), that is derived from a business or rental property of a partnership or trust if a person who was related to the child at any time in the year:

  • is actively engaged on a regular basis in the activity of the partnership or trust of earning that income; or
  • in the case where the income is from a partnership, has an interest in the partnership directly or indirectly through other partnerships.

The special tax does not apply if:

  • the income is from property the child inherits from a parent;
  • the income is from property the child inherits from anyone else and, during the year, he or she is enrolled full-time in a post-secondary institution or is eligible for the disability tax credit (see line 316);
  • the child was a non-resident of Canada at any time in the year; or
  • neither of the child's parents was a resident of Canada at any time in the year.

How to report this income

The child must report the income on the appropriate lines of his or her return and can claim a deduction on line 232. The special tax is included in the calculation of his or her federal and provincial or territorial taxes. To calculate this tax, complete Form T1206, Tax on Split Income. Attach the form to the child's paper return.

Tax shelters

To claim deductions, losses, or credits from tax shelter investments, attach to your paper return any applicable T5003 slips, a completed Form T5004, Claim for Tax Shelter Loss or Deduction, or T5013 slips. Your form must show the tax shelter identification number.

Tax Tip

For information about how to protect yourself against tax schemes, go to Tax Alert.

Line 101 – Employment income

Report the total of amounts shown in box 14 of all your T4 slips. If you have not received your slip by early April or if you have any questions about an amount on a slip, contact your employer. For more information, see What if you are missing information?.

If you have employment expenses, see line 229 for more information.

Notes

If you report employment income on line 101, you can claim the Canada employment amount on line 363 of Schedule 1.

If you received a housing allowance and/or an amount for eligible utilities as a member of the clergy and they are shown in box 14 of your T4 slips, subtract the amount shown in box 30 of your T4 slips from the amount shown in box 14 and report the difference on line 101. Report the amount shown in box 30 of your T4 slips on line 104.

If you have employment income from another country, report it on line 104 of your return.

If tips you received through employment are not shown on your T4 slips, report them on line 104.

You may be able to make Canada Pension Plan (CPP) contributions on certain employment income for which no contribution was made (for example, tips not shown on your T4 slips) or extra contributions on T4 income if you had more than one employer in the year. For more information, see Making additional CPP contributions under line 308.

Tax Tip

Your contributions to the CPP or Quebec Pension Plan (box 16 or 17 of your T4 slips and any amount on line 421) determine the benefit amount you will receive under either of these plans. If there are no contributions shown in box 16 or 17 of your T4 slips or if you have any questions about your contribution amount, contact your employer.

Emergency services volunteers

In 2017 you may have received a payment from an eligible employer, such as a government, a municipality, or another public authority for your work as a volunteer ambulance technician, a firefighter, a search and rescue volunteer, or other type of emergency worker. The T4 slips issued by this authority will generally show only the taxable part of the payment, which is the part that is more than $1,000. If you provided volunteer emergency services for more than one employer, you can claim the $1,000 exemption for each of your eligible employers.

The exempt part of a payment is shown in box 87 of your T4 slips.

As an emergency services volunteer, you may qualify for the volunteer firefighters’ amount (VFA) or the search and rescue volunteers’ amount (SRVA). See lines 362 and 395.

If you are eligible for the $1,000 exemption and either the VFA or the SRVA, you must choose which one you would like to claim.

If you choose to claim the exemption, report only the amounts shown in box 14 of your T4 slips on line 101.

If the authority employed you (other than as a volunteer) for the same or similar duties or if you choose to claim the VFA or the SRVA, the full payment is taxable. You must add the amounts shown in boxes 87 and 14 of your T4 slips and report the result on line 101.

Security options benefits

Report taxable benefits you received in (or carried forward to) 2017 on certain security options you exercised. If you report any taxable benefits, see line 249 for more information.

For eligible securities under option agreements exercised up to and including 4 p.m., Eastern time, on March 4, 2010, that were not granted by a Canadian controlled private corporation (CCPC), an income deferral of the taxable benefit may have been allowable subject to an annual limit of $100,000 on the fair market value of the eligible securities.

If you exercised an option for eligible securities after 4 p.m., Eastern time, on March 4, 2010, that was not granted by a CCPC, the election to defer the benefit is no longer available for those securities.

Your notice of assessment or reassessment will show the remaining balance of your deferred amounts. For more information, see Guide T4037, Capital Gains, or contact the CRA.

Commissions (box 42)

Report on line 102 the total commissions shown in box 42 of all your T4 slips you received as an employee. This amount is already included in your income on line 101, so do not add it again when you calculate your total income on line 150. If you have commission expenses, see line 229 for more information.

If you are a self-employed commission salesperson, see Guide T4002, Self–employed Business, Professional, Commission, Farming and Fishing Income, to find out how to report your commission income and claim your expenses.

Wage-loss replacement plan income

If you received payments from a wage-loss replacement plan shown in box 14 of your T4 slips, you may not have to report the full amount on your return. Report the amount you received minus the contributions you made to the plan if you did not use them on a previous year’s return. Report on line 103 your total contributions to your wage-loss replacement plan shown in the supporting documents from your employer or insurance company. Keep your supporting documents in case we ask to see them later. For more information, see Interpretation Bulletin IT-428, Wage Loss Replacement Plans.

Line 104 – Other employment income

Report on this line the total of the following amounts:

  • Employment income not reported on a T4 slip – Report amounts such as tips and occasional earnings.

    Notes
    If you report employment income on line 104, you can claim the Canada employment amount on line 363 of Schedule 1.

    Fees for services shown in box 048 of your T4A slips must be reported on the applicable self-employment line of your return (lines 135 to 143).
     
  • Net research grants – Subtract your expenses from the grant you received and report the net amount on this line. Your expenses cannot exceed the amount of your grant. Attach to your paper return a list of your expenses. For more information, see Guide P105, Students and Income Tax.
  • Clergy's housing allowance and/or an amount for eligible utilities – Report the amount shown in box 30 of your T4 slips. You may be entitled to claim a deduction on line 231.

    Note
    If the housing allowance or an amount for eligible utilities is shown in box 14 of your T4 slips, subtract the amount shown in box 30 of your T4 slips from the amount shown in box 14 and report the difference on line 101.
     
  • Foreign employment income – Report your earnings in Canadian dollars. See Report foreign income and other foreign amounts. If the amount on your United States W-2 slip has been reduced by contributions to a "401(k), 457 or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA)," you must add these contributions to your foreign employment income on line 104 of your Canadian return. These contributions may be deductible. See line 207.
  • Income-maintenance insurance plans (wage-loss replacement plans) – This income is shown in box 107 of your T4A slips. You may not have to report the full amount on your return. Report the amount you received, minus contributions you made to the plan after 1967, if you did not use them on a previous year's return. For more information, see Interpretation Bulletin IT-428, Wage Loss Replacement Plans.
  • Veterans' benefits – Report the amount shown in box 127 of your T4A slip.
  • Certain GST/HST and Quebec sales tax (QST) rebates – If you are an employee who paid and deducted employment expenses in 2016 or earlier and you received a GST/HST or QST rebate in 2017 for those expenses, report on line 104 the rebate you received. However, a rebate on which you can claim capital cost allowance is treated differently. For more information, see Chapter 10 in Guide T4044, Employment Expenses or go to GST/HST rebate for employees and partners.
  • Royalties – Report these amounts on this line if you received them for a work or invention of yours. Report other royalties (other than those included on line 135) on line 121.
  • Amounts you received under a supplementary unemployment benefit plan (a guaranteed annual wage plan) – Report the amount shown in box 152 of your T4A slips.
  • Taxable benefit for premiums paid to cover you under a group term life-insurance plan – Report the amount shown in box 119 of your T4A slips.
  • Employees profit-sharing plan (EPSP) – Report the amount shown in box 35 of your T4PS slips.

    Note
    If you are a specified employee and your employer made contributions to your EPSP, you may have to pay tax on the amount that is considered an excess amount. See line 418. If this tax applies to you, you may be eligible to claim a deduction for the excess contribution on line 229.
     
  • Medical premium benefits – Report the amount shown in box 118 of your T4A slips.
  • Wage Earner Protection Program – Report the amount shown in box 132 of your T4A slips.

Line 113 – Old age security (OAS) pension

Report the amount shown in box 18 of your T4A(OAS) slip.

If you have not received your T4A(OAS) slip, visit the Service Canada web site, or call 1-800-277-9914. To view your T4A(OAS) slip information, go to My Account for Individuals.

Notes

You may have to repay OAS benefits (see line 235) if the result of the following calculation is more than $74,788:

  • the amount from line 234; minus
  • the amounts reported on lines 117 and 125; plus
  • the amount deducted on line 213 and/or the amount for a repayment of registered disability savings plan income included on line 232.

The amount recovered from your gross OAS pension because of an overpayment you received in a previous period is shown in box 20 of your T4A(OAS) slip. You can claim a deduction on line 232 for the amounts repaid.

If at any time in 2017 you were a non-resident of Canada receiving an OAS pension, you may also have to complete Form T1136, Old Age Security Return of Income. For more information, see Guide T4155, Old Age Security Return of Income Guide for Non-Residents, or contact the CRA.

Line 114 – CPP or QPP benefits

Report the total Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits shown in box 20 of your T4A(P) slip. This amount is the total of the amounts shown in boxes 14 to 18. If your T4A(P) slip has an amount shown in box 16, 17, or 18, read the following sections that apply to you.

If you have not received your T4A(P) slip, visit the Service Canada web site or call 1-800-277-9914. To view your T4A(P) slip information, go to My Account for Individuals.

Lump-sum benefits – If you received a lump-sum CPP or QPP payment in 2017, parts of which were for previous years, you have to report the whole payment on line 114 of your return for 2017. We will not reassess the returns for the previous years to include this income. However, if the total of the parts that relate to previous years is $300 or more, we will calculate the tax payable on those parts as if you received them in those years only if the result is better for you. If you received a letter from Service Canada showing amounts that apply to previous years, attach it to your paper return. We will tell you the result on your notice of assessment or reassessment.

CPP or QPP disability benefit (box 16)

Report on line 152, located below and to the left of line 114,  your CPP or QPP disability benefits shown in box 16. This amount is already included in your income on line 114, so do not add it again when you calculate your total income on line 150.

CPP or QPP child benefit (box 17)

Report a child benefit only if you received it because you were the child of a deceased or disabled contributor. Any benefits paid for your children are their income, even if you received the payment.

CPP or QPP death benefit (box 18)

Do not report this amount if you are filing for a deceased person. If you received this amount and you are a beneficiary of the deceased person's estate, report it on line 114 of your own return unless a T3 Trust Income Tax and Information Return is being filed for the estate. For more information, see Guide T4011, Preparing Returns for Deceased Persons.

Line 115 – Other pensions and superannuation

Report on line 115 any other pensions and superannuation you received, such as amounts shown in box 016 of your T4A slips and box 31 of your T3 slips.

Report on line 130 any amount shown in box 018 of your T4A slips or box 22 of your T3 slips.

You may also have to report on line 115 other amounts you received. Read the following sections that apply to you.

Annuity, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income fund payments

Report the amount shown in box 024, 133 or 194 of your T4A slips, box 16 or 20 of your T4RIF slips, or box 19 of your T5 slips as follows:

  • If you were 65 years of age or older on December 31, 2017, report it on line 115.
  • Regardless of your age, if you received it on the death of your spouse or common-law partner, report it on line 115 even if the amount is transferred to an RRSP.
  • Otherwise, report on line 130 the amount shown in box 024, 133, or 194 of your T4A slips or box 16 or 20 of your T4RIF slips. Report on line 121 the amount shown in box 19 of your T5 slips.
Note

If there is an amount shown in box 18 or 22 of your T4RIF slip, see the instructions on the back of the slip.

Specified pension plan (SPP)

Report the SPP payments shown in box 016 of your T4A slip.

Note

Currently, the Saskatchewan Pension Plan is the only arrangement prescribed to be a specified pension plan. For more information about the Saskatchewan Pension Plan, visit Saskatchewan Pension Plan.

Tax Tips

If you have to report your pension, annuity, PRPP, RRIF, and SPP payments on line 115, you may be able to claim the pension income amount. See line 314.

You may also be able to make a joint election with your spouse or common-law partner to split your pension, annuity, PRPP, RRIF (including life income fund), and SPP payments you reported on line 115 if both of the following apply:

  • you were both residents of Canada on December 31, 2017 (or were residents of Canada on the date of death); and
  • you and your spouse or common-law partner were not, because of a breakdown in your marriage or common-law relationship, living separate and apart from each other at the end of the year and for a period of 90 days beginning in the year.

To make this election, you and your spouse or common‑law partner must complete Form T1032, Joint Election to Split Pension Income.

Note

If you elected to split your pension, superannuation, annuity, PRPP, RRIF (including life income fund), and SPP payments with your spouse or common-law partner, you (the transferring spouse or common-law partner) must still report the full amount on line 115, but you can claim a deduction for the elected split pension amount. See line 210.

Pensions from a foreign country

Report in Canadian dollars your gross foreign pension income received in 2017. See Report foreign income and other foreign amounts. Attach a note to your paper return identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income and you may have to report them elsewhere on your return.

United States individual retirement arrangement (IRA) - If during 2017 you received amounts from an IRA or converted an IRA to a "Roth" IRA, contact the CRA.

Tax Tip

You can claim a deduction on line 256 for the part of your foreign pension income that is tax-free in Canada because of a tax treaty. If you do not know if any part of your foreign pension is tax-free, contact the CRA.

United States Social Security - Report on line 115 the full amount, in Canadian dollars, of your U.S. Social Security benefits and any U.S. Medicare premiums paid on your behalf. You can claim a deduction for part of this income. See line 256.

Benefits paid for your children are their income, even if you received the payments.

Line 116 – Elected split-pension amount

If you and your spouse or common-law partner have made a joint election to split your spouse's or common-law partner's eligible pension income by completing Form T1032, Joint Election to Split Pension Income, you (the receiving spouse or common-law partner) must enter on this line the elected split-pension amount from line G of Form T1032.

File Form T1032 by your filing due date for the year (see What date is your return for 2017 due?). This form must be attached to both your and your spouse's or common-law partner's paper returns. The information provided on the forms must be the same. If you are filing electronically, keep your election form in case we ask to see it later.

Notes

Only one joint election can be made for a tax year. If both you and your spouse or common-law partner have eligible pension income, you will have to decide if you are splitting your pension income or your spouse's or common-law partner's pension income.

Under certain circumstances, we may allow you to make a late or amended election, or revoke an original election. For more information, contact the CRA.

Line 117 – Universal child care benefit (UCCB)

You must report the UCCB lump-sum payment you received in 2017 even if the amount is for prior tax years.

If you had a spouse or common-law partner on December 31, 2017, the one of you with the lower net income must report the UCCB lump-sum payment. Report on line 117 the amount shown in box 10 of the RC62 slip.

If you were a single parent on December 31, 2017, you can choose one of the following options:

  • Include all the UCCB lump-sum payment you received in 2017 in the income of the dependant for whom the amount for an eligible dependant (line 305 of Schedule 1) is being claimed. If there is no claim for the amount for an eligible dependant, you can choose to include all the UCCB amount in the income of a child for whom you received the UCCB. If you choose this option, enter on line 185, located below and to the left of line 117, the amount shown in box 10 of the RC62 slip. Do not report the amount on line 117.
  • Include all the UCCB lump-sum payment you received in 2017 in your own income. If you choose this option, report on line 117 the amount shown in box 10 of the RC62 slip. Do not enter the amount on line 185.

Note

The UCCB income you report will not be included in the calculation of your GST/HST credit, Canada child benefit (CCB) payments and any related provincial or territorial credits and benefits, the social benefits repayment (line 235), the refundable medical expense supplement (line 452), and the working income tax benefit (WITB) (line 453).

In 2017, you or your spouse or common-law partner may have repaid an amount included in your or your spouse's or common-law partner's income for a previous year. If this applies to you, see line 213.

Special calculation – We will not reassess the returns for the previous years to include this income. However, if the UCCB lump-sum payment is $300 or more, we will calculate the tax payable as if you received the amount in each of the previous years if the result is better for you. Box 10 of the RC62 slip will show the breakdown of the payment as it applies to each year. We will tell you the results on your notice of assessment or reassessment.

Note

This special calculation will not apply if you designated the lump-sum payment benefit to a dependant and entered the amount on line 185.

Line 119 – Employment insurance and other benefits

Report the amount shown in box 14 of your T4E slip, minus any amount shown in box 18 (if applicable). If you have already repaid excess benefits you received directly to the payer of your benefits, you may be able to claim a deduction. See line 232.

Note

You may have to repay some of the benefits you received (see line 235) if the result of the following calculation is more than $64,125:

  • the amount from line 234; minus
  • the amounts reported on lines 117 and 125; plus
  • the amount deducted on line 213 and/or the amount for a repayment of registered disability savings plan income included on line 232.

Line 120 – Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations

There are two types of dividends, eligible dividends and "other than eligible dividends," you may have received from taxable Canadian corporations.

If you need more information about the type of dividends you received, contact the payer of your dividends.

How to report this income

Complete Part I of Schedule 4.

Enter on line 180 the taxable amount of "other than eligible dividends," as shown in box 11 of T5 slips, box 25 of T4PS slips, box 32 of T3 slips, and box 130 of T5013 slips.

Report on line 120 the taxable amount of all dividends from taxable Canadian corporations, as shown in boxes 11 and 25 of T5 slips, boxes 25 and 31 of T4PS slips, boxes 32 and 50 of T3 slips, and boxes 130 and 133 of T5013 slips.

If you did not receive an information slip, you must calculate the taxable amount of "other than eligible dividends," by multiplying the actual amount of "other than eligible dividends" you received by 117%. Report the result on line 180.

You must also calculate the taxable amount of eligible dividends by multiplying the actual amount of eligible dividends you received by 138%. Report the combined total of eligible dividends and "other than eligible dividends" on line 120.

Dividends received from taxable Canadian corporations qualify for the dividend tax credit, which can reduce the amount of tax you pay. You can claim this credit when you calculate your federal and provincial or territorial taxes. Read the instructions for line 425.

Report on line 121 any foreign dividends you received.

Notes

Special rules apply for income from property (including shares) one family member lends or transfers to another. For more information, see Loans and transfers of property.

For children born in 2000 or later who report certain dividends, see Split income of a child under 18.

Tax tip

In some cases, it may be better for you to report all the taxable dividends your spouse or common-law partner received from taxable Canadian corporations. You can do this only if, by including the dividends in your income, you will be able to claim or increase your claim for the spouse or common-law partner amount (line 303 of Schedule 1).

If you use this option, you may be able to take better advantage of the dividend tax credit. Do not include these dividends in your spouse's or common-law partner's income when you calculate claims such as the spouse or common-law partner amount on line 303 or amounts transferred from your spouse or common-law partner on Schedule 2.

Line 121 – Interest and other investment income

The amounts you report for the year depend on the type of investment and when you made it. Report on line 121 amounts you received, minus any part of those amounts you reported in previous years. Also report amounts credited to you but that you did not receive (such as amounts that were reinvested).

The amounts to report include those shown in boxes 13, 14, 15, and 30 of T5 slips, box 25 of T3 slips, and boxes 128 and 135 of T5013 slips. You also have to report the interest on any tax refund you received in 2017, which is shown on your notice of assessment or reassessment.

If you received foreign interest or dividend income, report it in Canadian dollars. For more information, see Report foreign income and other foreign amounts.

If you own an interest in a foreign investment entity or an interest in a foreign insurance policy, you may have to report investment income. For more information, contact the CRA.

If, as a shareholder in a foreign corporation, you received certain shares in another foreign corporation, you may not have to report any amount in income for receiving those shares. For more information, contact the CRA.

Notes

Special rules apply for income from property (including money) one family member lends or transfers to another. For more information, see Loans and transfers of property.

Generally, when you invest your money in your child's name, you have to report the income from those investments. However, if you deposited Canada child benefit payments into a bank account or trust in your child's name, the interest earned on those payments is your child's income.

For children born in 2000 or later who report certain investment income, see Split income of a child under 18.

How to report this income

List your investments in Part II of Schedule 4. Generally, you report your share of interest from a joint investment based on how much you contributed to it.

Example

Sally and Roger received a T5 slip from their joint bank account showing the $400 interest they earned in 2017. Sally had deposited $4,000 and Roger had deposited $1,000 into the account.

Roger reports $80 interest, calculated as follows:

$1,000 (his share) ÷ $5,000 (total) × $400 (total interest)  = $80  

Sally reports $320 interest, calculated as follows:

$4,000 (her share) ÷ $5,000 (total) × $400 (total interest) = $320

Bank accounts

Report interest paid or credited to you in 2017, even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

Term deposits, guaranteed investment certificates (GICs), and other similar investments

On these investments, interest builds up over a period of time, usually longer than one year. Generally, you do not receive the interest until the investment matures or you cash it in. For information about Canada savings bonds, see Canada savings bonds.

The income you report is based on the interest you earned during each complete investment year. For example, if you made a long-term investment on July 1, 2016, report on your return for 2017 the interest that accumulated to the end of June 2017, even if you do not receive a T5 slip. Report the interest from July 2017 to June 2018 on your 2018 return.

Note

If your investment agreement specifies a different interest rate each year, report the amount shown on your T5 slips, even if it is different from what the agreement specifies or what you received. The issuer of your investment can tell you how this amount was calculated.

For most investments you made in 1990 or later, you have to report the interest each year, as you earn it. For information about reporting methods for investments made in 1989 or earlier, use Info-Tax, one of our Tax Information Phone Service, or see Interpretation Bulletin IT-396, Interest Income.

Canada savings bonds

Interest on a regular interest (R) bond is paid annually until the bond matures or you cash it in. Interest on a compound interest (C) bond is not paid until you cash it in. For both kinds of bonds, report the amount shown on the T5 slips.

Treasury bills

If you disposed of a treasury bill at maturity in 2017, you have to report as interest the difference between the price you paid and the proceeds of disposition shown on your T5008 slips or account statement.

If you disposed of a treasury bill before maturity in 2017, you may also have to report a capital gain or loss. For more information, see Guide T4037, Capital Gains.

Earnings on life insurance policies

Report the earnings that have accumulated on certain life insurance policies in the same way as you do for other investments. Your insurance company will send you a T5 slip. For policies bought before 1990, you can choose to report accumulated earnings annually by telling your insurer in writing.

Line 122 – Net partnership income: limited or non-active partners only

Report on line 122 your share of the net income or loss from a partnership if the partnership did not include a rental or farming operation and you were either:

  • a limited partner; or
  • not actively involved in the partnership and not otherwise involved in a business or profession similar to that carried on by the partnership.

Report your net rental income or loss from a partnership on line 126. Report your net farming income or loss from a partnership on line 141.

If none of the above applies to you, report your share of the partnership's net income or loss on the applicable self-employment line of your return (lines 135 to 143).

Notes

If the partnership has a loss, the amount you can claim could be limited. For more information, contact the CRA.

For children born in 2000 or later who report certain limited or non-active partnership income, see Split income of a child under 18.

If you have a tax shelter, see Tax shelters.

If all or part of the income was earned in a province or territory other than your province or territory of residence, or if it was earned outside Canada, complete and attach to your return Form T2203, Provincial and Territorial Taxes for 2017 - Multiple Jurisdictions.

Attach to your paper return a T5013 slip. If you did not receive one, attach a copy of the partnership's financial statement. See lines 135 to 143.

Note

You may have to make Canada Pension Plan contributions on the net income you report on line 122. See line 222.

Line 125 – Registered disability savings plan (RDSP) income

If you have received income from an RDSP in 2017, report the amount shown in box 131 of your T4A slips. For more information, go to Registered disability savings plan (RDSP), see Information Sheet RC4460, Registered Disability Savings Plan, or contact the CRA.

Note

The RDSP income you report will not be included in the calculation of your GST/HST credit, your Canada child benefit (CCB) payments (including those from related provincial or territorial programs), the social benefits repayment (line 235), the refundable medical expense supplement (line 452), or the working income tax benefit (line 453).

Line 126 – Rental income

Report your gross rental income on line 160 and your net rental income or loss on line 126. If you have a loss, show the amount in brackets. If you were a member of a partnership, also report any amount shown in boxes 107 and 110 of your T5013 slips or any amount the partnership allocated to you in its financial statements.

You must include with your paper return a statement or Form T776, Statement of Real Estate Rentals showing your rental income and expenses for the year. If it applies, also include your T5013 slips or a copy of the partnership's financial statement.

For more information, see Guide T4036, Rental Income.

If you have a tax shelter, see Tax shelters.

Line 127 – Taxable capital gains

You may have a capital gain or loss when you dispose of property, such as when you sell real estate, which may include your principal residence or shares (including those in mutual funds). You may also have a gain or a loss if you are considered to have disposed of property (see the definition of Deemed disposition). Generally, if the total of your gains for the year is more than the total of your losses, you have to report 50% of the difference as income. However, if the total of your losses for the year is more than the total of your gains, you cannot deduct the difference on your return for the year. See How to report these gains.

If you sold a principal residence in the year, complete the "Principal residence" section on page 2 of Schedule 3.

If you have a capital gain or loss from selling or redeeming your mutual fund units or shares, get Information Sheet RC4169, Tax Treatment of Mutual Funds for Individuals, for more information.

If you realized a capital gain as a result of a mortgage foreclosure or conditional sales repossession, this gain is not included in income when we calculate your GST/HST credit, your Canada child benefit payments, your child disability benefit payments, the social benefits repayment (line 235), the age amount (line 301 of Schedule 1), the refundable medical expenses supplement (line 452), the working income tax benefit (line 453), the Prince Edward Island, Nova Scotia, New Brunswick or the Newfoundland and Labrador tax reductions. If this applies to you, contact the CRA.

When you donate capital property to a registered charity or other qualified donees, we consider you to have disposed of the property at its fair market value. As a result, you may have to report a capital gain or loss for that property. There are special rules for donations of certain property. For more information, see Guide T4037, Capital Gains, and Pamphlet P113, Gifts and Income Tax.

For donations of publicly traded securities, the inclusion rate of zero also applies to any capital gain realized on the exchange of shares of the capital stock of a corporation for those publicly traded securities that were donated. This treatment has certain conditions. If the exchanged securities are partnership interests, a special calculation is required to determine the capital gain to be reported. For more information about exchangeable securities, see Pamphlet P113, Gifts and Income Tax.

Donations of certain flow-through share properties may result in a deemed capital gain subject to an inclusion rate of 50%. For more information, see Pamphlet P113, Gifts and Income Tax.

Deemed disposition – A deemed disposition occurs when you are considered to have disposed of property, even though you did not actually sell it. For example, a deemed disposition will occur when there is a change in use of a principal residence, such as:

  • You change all or part of your principal residence to a rental or business operation.
  • You change all or part of your rental or business operation to a principal residence.

Special rules may apply. See Guide T4037, Capital Gains, or Income Tax Folio S1 F3 C2, Principal Residence, to find out about reporting the disposition on Schedule 3 and Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust) .

When an individual dies, there is also a deemed disposition of property owned at the date of death. Special rules may apply. For example, you may have to report the disposition of a principal residence on Schedule 3 of the final return of the deceased individual, and Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual, if applicable. For more information, see Guide T4011, Preparing Returns for Deceased Persons.

How to report these gains

Complete Schedule 3 and attach it to your paper return. Generally, if your gains or losses are shown on T4PS, T5, or T5013 slips, report the total of amounts on line 174 of Schedule 3. If they are shown on T3 slips, report the total of amounts on line 176. Also attach these documents to your paper return. If your securities transactions are shown on an account statement or a T5008 slip, use the information on these documents to help you complete Schedule 3. For more information about these and other capital dispositions, see Guide T4037, Capital Gains.

If the result on line 199 of Schedule 3 is positive (gain), report the amount on line 127 of your return. If the result is negative (loss), do not report the amount on line 127 of your return. Your notice of assessment will show you the amount of loss you may claim. Keep track of this loss, which you can use to reduce your taxable capital gains of other years. For more information, read the following notes.

Notes

You may have incurred a net capital loss in 2017 you would like to apply against taxable capital gains you reported on your 2014, 2015, or 2016 return. For more information and to carry back the loss, get Form T1A, Request for Loss Carryback, and Guide T4037, Capital Gains. Attach a completed Form T1A to your paper return (or send one to us separately). Do not file an amended return for the year or years to which you apply the loss.

If you are preparing a return for a person who died in 2017, see Guide T4011, Preparing Returns for Deceased Persons, for more information about special rules that apply to claiming these losses.

Tax tip

You may be able to claim a deduction for your capital gains. See line 254.

Line 128 – Support payments received

Report on line 156 the total of all taxable and non-taxable support payments you received for yourself and/or for a child (or, if you are the payer, the payments that were repaid to you under a court order) in 2017. Report on line 128 only the taxable amount.

Note

Most child support payments received according to a written agreement or court order dated after April 1997 are not taxable. For more information, see Guide P102, Support Payments.

Tax tips

You may be able to claim a deduction on line 256 for the part of the payments you received from a resident of another country that is tax-free in Canada because of a tax treaty. If you do not know if any part of the payment is tax-free, contact the CRA.

You may be able to claim a deduction on line 220 for support payments you repaid under a court order. For more information, see Guide P102, Support Payments.

Line 129 – RRSP income

Report the total of amounts shown in boxes 16, 18, 28, and 34 of all your T4RSP slips. Also report amounts shown in boxes 20, 22, and 26, unless your spouse or common-law partner made a contribution to your registered retirement savings plan (RRSP). For more information, see RRSPs for spouse or common-law partner.

Notes

If you report a refund of RRSP premiums shown in box 28 of your T4RSP slips and you rolled over an amount to a registered disability savings plan (RDSP), you may be able to claim a deduction (see line 232). For more information about RDSPs, go to Registered disability savings plan (RDSP) or see Guide T4040, RRSPs and Other Registered Plans for Retirement.

Regardless of your age, if you received income shown on a T4RSP slip on the death of your spouse or common-law partner, report it on line 129 even if the amount is transferred to an RRSP.

Tax tips

If unused RRSP contributions you made after 1990 were refunded to you or your spouse or common-law partner in 2017, you may be able to claim a deduction on line 232. See line 232.

RRSP annuity payments you report on line 129 (shown in box 16 of your T4RSP slips) qualify for the pension income amount if you were 65 years of age or older on December 31, 2017, or if you received the payments on the death of your spouse or common-law partner. See line 314.

You may also be able to make a joint election with your spouse or common-law partner to split your RRSP annuity payments you reported on line 129 if you meet all the following conditions:

  • you were 65 years of age or older on December 31, 2017, or you received the payments on the death of your spouse or common-law partner;
  • you were both residents of Canada on December 31, 2017 (or were residents of Canada on the date of death); and
  • you and your spouse or common-law partner were not, because of a breakdown in your marriage or common-law relationship, living separate and apart from each other at the end of the year and for a period of 90 days commencing in the year.

To make this election, you and your spouse or common-law partner must complete Form T1032, Joint Election to Split Pension Income.

Note

If you elected to split your RRSP annuity payments with your spouse or common-law partner, you (the transferring spouse or common-law partner) must still report the full amount on line 129, but you can claim a deduction for the elected split pension amount. See line 210.

RRSPs for spouse or common-law partner

Your spouse or common-law partner may have to report some or all of the RRSP income shown in boxes 20, 22, and 26 of your T4RSP slips if he or she contributed to any of your RRSPs in 2015, 2016, or 2017. In that case, your T4RSP slips should have "Yes" ticked in box 24 and your spouse's or common-law partner's social insurance number shown in box 36.

To calculate the amount from an RRSP for a spouse or common-law partner that each of you has to report, complete Form T2205, Amounts from a Spousal or Common-Law Partner RRSP, RRIF, or SPP to Include in Income. Both you and your spouse or common-law partner should include this form with your paper returns. However, only the person shown as the annuitant (recipient) on the T4RSP slips can claim the income tax deducted (box 30) and should attach the slips to his or her paper return.

Note

If you and your spouse or common-law partner were living apart because of a breakdown in the relationship when you withdrew funds from your RRSP, you have to report the whole amount shown on your T4RSP slips.

Repayments under the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP)

If in previous years you withdrew funds from your RRSP under the HBP or the LLP, you may have to make a repayment for 2017. The minimum repayment is shown on your notice of assessment or reassessment for 2016. To make a repayment, you have to contribute to your RRSP, specified pension plan (SPP), or a PRPP from January 1, 2017, to March 1, 2018, and designate your contribution as a repayment on line 6 or 7 of Schedule 7. See line 208. Do not send your repayment to us.

If you repay less than the minimum amount for 2017, you have to report the difference on line 129 of your return.

Example

Kevin withdrew funds under the HBP in 2012. His minimum required repayment for 2017 was $800. The only RRSP contribution he made from January 1, 2017, to March 1, 2018, was $500 on June 18, 2017. He designated it on line 6 of Schedule 7 as a repayment under the HBP and included $300 in his income on line 129 ($800 minimum required repayment minus $500 repaid and designated).

For more information, including the rules that apply when the person who made the withdrawal dies, turns 71 years of age, or becomes a non-resident, see Guide RC4112, Lifelong Learning Plan (LLP) or go to What is the Home Buyers' Plan?

To view your HBP or LLP information, go to My Account for Individuals.

Line 130 – Other income

Use this line to report taxable income that has not been or should not be reported anywhere else on the return. To find out if an amount is taxable, contact the CRA. In the space to the left of line 130, specify the type of income you are reporting. If you have more than one type of income, attach a note to your paper return giving the details.

Note

Special rules apply for income from property one family member lends or transfers to another. For more information, see Loans and transfers of property.

Scholarships, fellowships, bursaries, and artists' project grants

Elementary and secondary school scholarships and bursaries are not taxable.

Post-secondary school scholarships, fellowships, and bursaries are not taxable if you received them in 2017 for your enrolment in a program that entitled you to claim the full-time education amount in 2016 or if you areconsidered a full-time qualifying student for 2017 or 2018.

New As of January 1, 2017, the education amount has been eliminated and the new term “qualifying student” has been introduced to ensure that the scholarship exemption is unaffected.  In addition, the exemption was enhanced to include scholarships or bursaries received by students aged 16 and over at the end of the year who are enrolled in a post-secondary educational institution in Canada for a program that is not at the post-secondary level but provides the student with skills for, or improves a student’s skills in, an occupation.

In most cases, you were eligible for the education amount or you are a qualifying student in a year if you received a T2202A, TL11A, TL11B, or TL11C and the institution has completed either column B or C. For more information, see Guide P105, Students and Income Tax.

If you were not eligible for the full-time or part-time education amount for 2016, and you are not considered a qualifying student for 2017 or 2018, report on line 130 the part of the post-secondary scholarships, fellowships, and bursaries you received in the year that is more than $500.

Notes

Post-secondary programs consisting mainly of research are eligible for the scholarship exemption  only if they lead to a college or CEGEP diploma or a bachelor, masters, or doctoral (or equivalent) degree. Post-doctoral fellowships are taxable.

If you have received a scholarship, fellowship, or bursary related to a part-time program for which you could claim the part-time education amount for that program for 2016, or if you are a part-time qualifying student for 2017 or 2018, the scholarship exemption is equal to the tuition paid plus the costs of program-related materials.

You may also be able to claim up to an additional $500 as a scholarship exemption.

If you received an artists' project grant, see Guide P105 for more information.

Report prizes and awards you received as a benefit from your employment or in connection with a business. However, this type of income is not eligible for the $500 tax-free amount. If you received a research grant, see line 104.

For more information, go to Students or see Guide P105, Students and Income Tax, and the Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance.

Apprenticeship incentive grant and apprenticeship completion grant

If you received an apprenticeship incentive or completion grant in 2017, report the amount shown in box 130 of your T4A slip on line 130.

For more information, visit Service Canada, see Guide P105, or call 1-866-742-3644.

Lump-sum payments

Report lump-sum payments from pensions and deferred profit-sharing plans (box 018 of your T4A slips and box 22 of your T3 slips) you received when leaving a plan.

If in 2017 you received a lump-sum payment that included amounts you earned in previous years, you have to report the whole payment on line 130 of your return for 2017. However, you can ask us to apply a reduced tax rate to the part relating to amounts you earned before 1972 by attaching a note to your paper return. We will tell you the result on your notice of assessment or reassessment.

Retiring allowances

Report the amount shown in boxes 66 and 67 of your T4 slips and any retiring allowance shown in box 26 of your T3 slips.

Note

You may be able to deduct legal fees you paid to get a retiring allowance. See line 232.

Tax tip

You may be able to transfer part or all of your retiring allowances to your RRSP. See line 14 - Transfers.

Death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits)

A death benefit is an amount you receive after a person's death for their employment service. It is shown in box 106 of your T4A slips or box 26 of your T3 slips.

You may not have to pay tax on up to $10,000 of the benefit you received. If you are the only one to receive a death benefit, report the amount you receive that is more than $10,000. Even if you do not receive the full death benefit in one year, the total tax-free amount for all years cannot exceed $10,000.

To find out what to report if anyone else also received a death benefit for the same person, use Info-Tax, one of our Tax Information Phone Service, or see Interpretation Bulletin IT-508, Death Benefits.

Attach to your paper return a note stating the death benefit amount you received but did not include in your income.

Other kinds of income

Also report the following income on line 130:

  • amounts distributed from a retirement compensation arrangement shown on your T4A-RCA slips (for more information, see the back of your slips);
  • training allowances or any other amount shown in box 028 of your T4A slips (other than amounts already noted for this line and lines 104, 115, and 125);
  • payments from a trust shown in box 26 of your T3 slips;
  • payments from a registered education savings plan shown in box 040 (see line 418) or 042 of your T4A slips;
  • certain annuity payments (see line 115);
  • certain payments from a tax-free savings account (TFSA) shown in box 134 of your T4A slips;
  • designated benefits from a registered retirement income fund shown in box 22 of your T4RIF slips, or the registered pension plan amount shown in box 018 of your T4A slips. If you rolled over an amount to a registered disability savings plan (RDSP), see line 232 for information about the corresponding deduction. For more information about RDSPs, go to Registered disability savings plan (RDSP) or see Guide T4040, RRSPs and Other Registered Plans for Retirement;
  • amounts (grants) paid to you as a result of taking time away from work to cope with the death or disappearance of your child because of an offence or probable offence under the Criminal Code (shown in box 136 of your T4A slips); and
  • PRPP income shown in box 194 of your T4A slips if you were under 65 years of age and you did not receive this income on the death of your spouse or common-law partner.

Lines 135 to 143 – Self-employment income

Report on the appropriate lines your gross and net income or loss from self-employment. If you have a loss, show it in brackets. Include with your paper return a statement showing your income and expenses.

You have to file Form T1139, Reconciliation of 2017 Business Income for Tax Purposes, with your return for 2017 to keep a year-end that does not finish on December 31, 2017. Even if you filed Form T1139 with your return for 2016, you may have to complete the version of this form for 2017. For more information, see Guide RC4015, Reconciliation of Business Income for Tax Purposes.

Notes

You may have to make Canada Pension Plan contributions on your self-employment earnings. See line 222.

You may be able to enter into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the employment insurance (EI) program for access to EI special benefits. For more information, contact Service Canada.

For children born in 2000 or later who report certain self-employment income, see Split income of a child under 18.

Notes

If you are participating in the AgriStability and AgriInvest programs and you are filing a paper return, use the envelope provided in Guide RC4060 or RC4408.

If you use your home for daycare, see Guide P134, Using Your Home for Daycare.

If you were a limited or non-active partner, report your net income or losses from rental operations on line 126 and your net farming income or losses on line 141. Report other net income or other losses on line 122.

If you were an active partner and you received a T5013 slip, report on your return the amount from boxes 118, 121, 123, 125, and 127. Report your share of the partnership’s net income or loss shown in boxes 101, 103, 116, 120, 122, 124, and 126 on the applicable line of your return. Attach the T5013 slip to your paper return. If you did not receive this slip, follow the instructions on the applicable self‑employment form and report your share of the partnership’s net income or loss on the applicable self‑employment line of your return. Attach the applicable self‑employment form or a copy of the partnership’s financial statement to your paper return.

For more information, call our business enquiries line at 1-800-959-5525.

If you have a tax shelter, see Tax shelters.

Line 144 – Workers' compensation benefits

Report the amount shown in box 10 of your T5007 slip. Claim a deduction on line 250 for the benefits you entered on line 144.

Note

In 2017, you may have repaid salary or wages originally paid to you by your employer in a previous year, in anticipation of workers' compensation benefits you would receive. This amount is shown in box 77 of your T4 slips. You may be able to claim a deduction on line 229. For more information, contact the CRA.

Line 145 – Social assistance payments

Report the amount shown in box 11 of your T5007 slip or the federal part of your Quebec Relevé 5 slip, unless you lived with your spouse or common-law partner when the payments were made. The spouse or common-law partner with the higher net income on line 236 (not including these payments or the deductions on line 214 or line 235) must report all the payments, even if that person's name is not shown on the slip. If this amount is the same for both of you, the person named on the T5007 slip (or the prestataire on the federal part of the Relevé 5 slip) must report the payments.

Claim a deduction on line 250 for the social assistance payments you entered on line 145.

Notes

You do not have to report certain social assistance payments you or your spouse or common-law partner received for being a foster parent or for caring for a disabled adult who lived with you. However, if the payments are for caring for your spouse or common-law partner or any person related to either of you, whoever has the higher net income must report those payments. For more information, contact the CRA.

If you repay an amount that was shown on a T5007 slip or a Relevé 5 slip in a previous year, the return for that year may be adjusted based on the amended slip provided. For more information, see How to change a return.

If you are a registered Indian or a person entitled to be registered as an Indian under the Indian Act, and live on a reserve, do not report social assistance payments received from your band council. We do not include such payments in your net family income when we calculate your GST/HST credit or Canada child benefit payments.

Line 146 – Net federal supplements

Report the amount shown in box 21 of your T4A(OAS) slip.

If your net income before adjustments on line 234 of your return is $74,788 or less, claim a deduction on line 250 for the net federal supplements you entered on line 146. If the amount on line 234 of your return is more than $74,788, see line 250.

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