Types of income

Employment income (T4) Line 10100

• Individuals who worked and earned a salary during the year will receive a T4 slip from their employer
• The amounts reported on the slips include: 
  • employment income
  • source deductions
  • contributions and premiums paid during the year (some of which may entitle the individual to a tax credit or deduction)
• Employment income is in box 14 of the T4 and will be entered on line 10100

Related topics

• UFile instructions
• What to consider for Indigenous Peoples – Employment income and employment-related income
• What to consider for Indigenous Peoples – Employment income (T4)

Old age security pension (T4A(OAS)) Line 11300

• When an individual receives the old age security (OAS) pension or the guaranteed income supplement (GIS), the amounts received are shown on the same T4A(OAS) slip
• The taxable OAS pension the individual received during the year is shown in box 18
• The GIS is shown in box 21 and is not taxable
• The federal and Quebec income tax deducted at source are shown in boxes 22 and 23, respectively
• The amount in box 18 will be entered on line 11300
• The amount in box 21 will be entered on lines 14600 and 25000

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• UFile instructions
• What to consider for Indigenous Peoples – Old age security pension and the Guaranteed income supplement (T4A(OAS))
• Net federal supplements paid (T4A(OAS))

CPP or QPP benefits (Child benefit)(T4A(P) box 17) Line 11400

• The Child benefit amount found in box 17 is already included in box 20 of the T4A(P) slip
• If the income was received by the individual on behalf of a dependant, this amount must be reported on their applicable dependant’s tax return

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• UFile instructions
• Add a dependant
• What to consider for Indigenous Peoples – Employment income and employment-related income
• What to consider for Indigenous Peoples – CPP or QPP (T4A(P))

Other pensions and superannuation (T4RIF) Line 11500

• Payments from a registered retirement income fund (RRIF) are taxable
• These are found in boxes 016 and 024 of a T4RIF slip
• These amounts are reported on line 11500 if one of the following applies:
  • the individual is 65 years of age or older on December 31
  • regardless of age, the individual received the amount upon the death of their spouse or common-law partner (the individual must provide the volunteer this information)
• If neither of those situations apply, the amount is instead reported on line 13000
• The amounts on line 11500 qualify for the elected split-pension income with a spouse on lines 11600 and 21000
• The software automatically reports the amounts on the appropriate line based on the information provided

Related topics

• UFile instructions
• What to consider for Indigenous Peoples – Employment income and employment-related income
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• Elected split-pension amount
• Registered Retirement Income Fund on Canada.ca

Elected split-pension amount Line 11600

An individual who receives eligible pension or retirement income can make a joint decision to transfer part of it to their spouse or common-law partner. There is no actual monetary exchange; the split enables a calculation to take place when filing their income tax returns. Pension income splitting allows for a couple to reduce their total tax payable. Up to 50% of the eligible income can be transferred. Any income tax withheld from that income must also be transferred in the same proportions.

Eligibility criteria:

• The individuals were married or in a common-law relationship during the year
• The individuals were not living separate and apart due to a breakdown in their relationship at the end of the year
• The individuals were residents of Canada on December 31 of the year in question

The split-pension amount will be reported:

• on line 11600 of the receiving spouse or common-law partner's tax return
• on line 21000 of the transferring spouse or common-law partner's tax return

Related topics

• Pension income splitting on Canada.ca

Interest and other investment income Line 12100

• Interest and other investment income are taxable and must be reported on the tax return
• The amounts are generally found on a T5 slip
• Individuals may not receive a T5 slip if the investment income is less than $50 but this income must still be reported
• Individuals also have to report the interest on any tax refund they received during the year as identified on their notice of assessment or reassessment of any tax year
• A joint investment income must be reported in the same ratio as the contribution made by each account holder:
  • for example, if only one individual has deposited all the money in a joint account, this individual has to report all investment income from that account

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• UFile instructions
• What to consider for Indigenous Peoples – Interest income (T5)

Taxable capital gains (sale of principal residence)(T2091) Line 12700

• Generally, a volunteer should not prepare returns for individuals who have sold their property, but CVITP volunteers may prepare tax returns for individuals who have sold a property if they meet the following requirements:
  • the entire property is designated as their principal residence for all years that they owned it
  • the individual never reported any rental income (or loss) generated from the property
• When an individual sells their principal residence, any capital gain from that sale is not taxable because of the principal residence exemption
• The individual must report the sale and designate their property as their principal residence on Schedule 3 and Form T2091, Designation of a Property as a Principal Residence by an Individual
• You need the following information from the individual to report and designate the sale of their principal residence:
  • the date of acquisition
  • the date of disposition
  • the proceeds of disposition
  • the address of the principal residence
  • the percentage of co-ownership if owned jointly with another person (individuals generally co-own 50% with their spouse or common-law partner)

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• UFile instructions
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First home savings account income (T4FHSA) Line 12905

• Individuals who make a taxable withdrawal from their first home savings account (FHSA) must report the income on their tax return:
  • the taxable withdrawal amount is found in box 22 of the T4FHSA slip
• Individuals may receive an amount from a FHSA after it is closed, this amount is taxable and must be reported on the tax return:
  • the amount deemed received on FHSA cessation is found in box 26 of the T4FHSA slip

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Other income (RESP Educational assistance payments)(T4A box 042) Line 13000

• RESP Educational assistance payments (EAP) are taxable and must be reported as income on the student’s tax return for the year they receive them
• The amount is found in box 042 on a T4A slip

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• UFile instructions
• What to consider for Indigenous Peoples – Employment income and employment-related income
• Guide P105, Students and Income Tax on Canada.ca
• Educational Assistance Payments on Canada.ca

Self-employment income (T4A box 048) Line 13500

• In some cases, self-employed individuals are eligible for the CVITP. A self-employed individual is eligible for the program if:
  • they have earned less than $1,000
  • they are not deducting any expenses
  • they are not registered or required to register for the GST
• Some self-employed individuals who provide services to both individuals and businesses may receive a T4A slip, Statement of Pension, Retirement, Annuity, and Other Income
• If an individual has a T4A slip that has an amount in box 048 - Fees for services, this amount is taxable income which must be reported as self-employment or business income and Form T2125, Statement of Business or Professional Activities, must be included with the tax return
• The North American Industry Classification System (NAICS) code must be entered on Form T2125 so the individual must provide enough information to find the correct six digit NAICS code
• If the person has self-employment income, you must report all of it, regardless of whether or not they have any supporting documents

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• UFile instructions
• North American Industry Classification System (NAICS) Canada 2022 (NAICS codes and groupings) on Canada.ca
• What to consider for Indigenous Peoples – Employment income and employment-related income

Social assistance payments (T5007) Line 14500

• Social assistance payments are non-taxable
• The amounts are found in box 11 of the T5007 slip and must be reported as income
• The income will be entered on line 14500 and a deduction of the same amount will be entered on line 25000
• If an individual was living with their spouse or common-law partner at the time the social assistance payments were received, the person with the higher net income (line 23600) after subtracting these payments (line 14500), childcare expenses (line 21400), and the social benefits repayment (line 23500), must report all social assistance payments, regardless of the name on the slip
• By answering a few questions, UFile will determine whether the payments must be reported on the individual's tax return or on that of their spouse

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• UFile instructions
• What to consider for Indigenous Peoples – Social assistance payment (T5007 or letter from band council)