Language selection

Government of Canada / Gouvernement du Canada

Search

Sign in

Sign in

Types of income

On this page

  • Employment income (T4) Line 10100

    • Individuals with employment income will receive an annual T4 slip, Statement of Remuneration Paid, from their employer(s).
    • The employment income is shown in box 14.
    • Other amounts shown on a T4 slip may entitle an individual to claim certain credits and deductions.

    Ufile tip

    The software will automatically claim all credits and deductions the individual is entitled to.

     

    Related topics

  • Other employment income (Tips) (Gratuities) Line 10400

    • Some types of employment income may not be found on a T4 slip. These types include, but are not limited to tips, gratuities, or occasional earnings. If there is an employment income not included on the T4 slip, it is the individual’s responsibility to provide you with the amounts.
    • All tips, gratuities and occasional earnings are taxable. The amount earned from January 1 through December 31 must be reported in the tax return.
    • Tips, gratuities and occasional earnings that are not included on a T4 slip are not subject to CPP contributions or EI premiums. However, an individual can choose to make CPP contributions on tips and gratuities.

    Related topics

  • Old Age Security (OAS) pension (T4A(OAS)) Line 11300

    • This is a taxable pension, and eligible individuals receive an annual T4A(OAS) slip, Statement of Old Age Security.
    • The amount of Old Age Security received is found in box 18.
    • This amount is neither eligible for the Pension income amount on line 31400 nor the Elected split-pension amount on lines 11600 and 21000.

    Related topics

  • CPP or QPP benefits (T4A(P)) Line 11400

    • Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) payments are taxable.
    • They are found in box 20 of the T4A(P) slip and include the following amounts:
      • CPP or QPP retirement benefit (box 14)
      • CPP or QPP survivor benefit (box 15)
      • CPP or QPP disability benefit (box 16)
      • CPP or QPP post-retirement benefit (box 19)
    • These amounts are neither eligible for the Pension income amount on line 31400 nor the Elected split-pension amount on lines 11600 and 21000.

    Related topics

  • CPP or QPP benefits ((T4A(P) – Child benefit (Box 17)) Line 11400

    • 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 does not get reported on the individual’s tax return and instead must be reported on their applicable dependant’s tax return.

    Related topics

  • Other pensions and superannuation (T4A) Line 11500

    • Pensions, superannuation, and annuity payments are taxable.
    • These are found in boxes 016, 024, 133, and 194 of a T4A slip.
    • The amounts from boxes 024, 133 and 194 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, 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.

    UFile tip

    The software automatically reports the amounts on the appropriate line based on the information provided.

    The software automatically claims up to $2,000 on line 31400 Pension income amount, if the individual qualifies.

     

    Related topics

  • 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:
      • the individual is 65 years of age or older on December 31, or
      • regardless of age, 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.

    UFile tip

    The software automatically claims up to $2,000 on line 31400 Pension income amount, if the individual qualifies.

     

    Complex situation

    • Volunteers should not complete tax returns for the following complex tax situations:
      • amounts are found in boxes other than 16, 20, 24, 28, 35 or 37
      • box 26 is ticked or if box 32 has a SIN
     

    Related topics

  • Other pensions and superannuation (US Social security) Line 11500

    • This income is taxable and must be reported, in Canadian dollars, on the tax return.
    • Individuals who receive United States social security benefits should receive an SSA-1042-S-Social Security Benefit Statement.
    • The individual receives a 15% deduction on line 25600. However, they may be eligible for a 50% deduction if they can confirm they were a resident of Canada who received the benefits starting since before January 1, 1996 and have remained a resident receiving continuous payments through to the present.
    • Eligible amounts may qualify for the Elected split-pension income with a spouse on lines 11600 and 21000.
    • The amount may be eligible for the Pension income amount on line 31400.

    Important note

    A tax return involving any other type of foreign pension income is not considered a simple tax situation.

     

    Ufile tip

    The software will automatically calculate the deduction on line 25600.

    The software automatically claims the pension income amount, if eligible.

     

    Related topics

  • Elected split-pension amount Line 11600

    • Pension income splitting allows a married or common-law couple to transfer up to 50% of the eligible pension income for the individual to their spouse or common-law partner which may allow the couple to reduce their total amount of tax owed.
    • The spouse or common-law partner receiving the transferred amount reports this income on line 11600.
    • The spouse or common-law partner making the transfer claims a deduction for the transferred amount, on line 21000.
    • Form T1032, Joint Election to Split Pension Income must be completed for both spouses.

    Ufile tip

    The software will automatically:

    • calculate the most beneficial split of the eligible pension income
    • generate form T1032, Joint Election to Split Pension Income for both spouses
     

    Related topics

  • Employment insurance and other benefits (T4E) Line 11900

    • Canada Emergency Response Benefit (CERB) from Service Canada and Employment Insurance (EI) benefit payments are taxable.
    • Boxes 15, 17, 18, 33, 36 and 37 breakdown each type of benefits paid, and all are included in the amount found in box 14.
    • If there is an amount found in box 30, this means that the individual repaid EI benefits or the Canada Emergency Response Benefit (CERB). If the individual informs you that all or part of the amount repaid was CERB, refer to line 23210 Federal COVID-19 benefits repayment. If the individual did not repay CERB, the entire repayment amount in box 30 is claimed on line 23200 in their tax return.
    • If there is a percentage in box 7 and an amount in box 15 the individual may have to make a repayment.
      • the repayable amount is reported on line 23500 Social benefits repayment and line 42200 Social benefits repayment of the tax return

    Ufile tip

    The software automatically calculates how much EI the individual must repay.

     

    Related topics

  • 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. If only one individual has deposited all the money in a joint account, this individual has to report all investment income from that account.

    Related topics

  • Registered disability savings plan (RDSP) income (T4A box 131) Line 12500

    • An RDSP is taxable and must be reported in the tax return.
    • The taxable amount is found in box 131 of a T4A slip.

    Related topics

  • Taxable capital gains (Sale of principal residence)(T2091) Line 12700

    • Generally, a volunteer should not prepare returns for individuals who sold their property. However, 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:

    Ufile tip

    The software automatically reports the sale and designation. Due to the exemption, the software does not report any income (capital gains) on the tax return.

    Related topics

  • Registered retirement savings plan (RRSP) income (T4RSP) Line 12900

    • Annuities or money withdrawn from an RRSP are taxable and must be reported on the tax return.
    • The amounts are found in boxes 16 and 22 on a T4RSP slip.
    • The amount in box 16 may qualify for the Elected split-pension on lines 11600 and 21000. The amount will qualify and the software will automatically claim up to $2,000 for the Pension income amount on line 31400 if one of the following applies:
      • the individual is 65 years of age or older on December 31
      • regardless of their age, received the amount upon the death of their spouse or common-law partner (the individual must provide the volunteer this information)

    Complex situation

    • If there are amounts in boxes other than 16, 22 or 30, it is too complex for the CVITP.
    • If box 24 is ticked or there is a SIN in box 36, it is too complex for the CVITP.
    • If the individual informs the volunteer that the amount in box 22 was transferred to another RRSP (or another registered plan) or was withdrawn because they had too much money in their RRSP, it is too complex for the CVITP.
     

    Related topics

  • Other income (T4A) (COVID-19 related benefits) Line 13000

    • COVID-19 amounts from the federal and provincial or territorial governments are taxable.
    • These amounts are found in boxes 197, 198, 199, 200, 202, 203, 204, 205, and 211 of the T4A slip.
    • If there is an amount in box 201, and Canada Revenue Agency is reported in the Payer’s name box, refer to line 23210 Federal COVID-19 benefits repayment.
    • If there is an amount in box 201, and a provincial or territorial government is reported in the Payer’s name box, refer to line 23200 Other deductions.

    Ufile tip

    If there is an amount in box 202 and the individual’s net income is more than $38,000, the software automatically calculates how much CRB they must repay. This amount is reported on line 23500 Social benefits repayment and line 42200 Social benefits repayment of the tax return.

     

    Related topics

  • Other income (RESP Accumulated income payments AIP) (T4A box 040) Line 13000

    • Accumulated income payments (AIP) are taxable and must be reported as income, generally on the subscriber’s income tax and benefit return, for the year they received them.
    • The amount is found in box 040 on a T4A slip

    Ufile tip

    If applicable, the software automatically:

    • calculates and enters an amount for line 41800 in the tax return
    • generates form T1172 which is the detailed calculation of the amount that is entered on line 41800
     

    Related topics

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

    • 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.

    Related topics

  • Scholarships, fellowships, bursaries and study grants (T4A box 105) Line 13010

    • A student who receives scholarships and bursaries (as well as fellowships; study grants; and artists’ project grants and awards) can find these amounts reported on a T4A slip. The income they received should be reported in box 105.
    • For a student with full-time enrolment in 2020, 2021, or 2022, this amount is fully exempt.
    • For a student with part-time enrolment in 2020, 2021, or 2022: the scholarship exemption is equal to the tuition paid, plus the costs of program-related materials, plus the $500 basic scholarship exemption.
    • If the student is not a qualifying student and has received an award that is not an artists’ project grant, the exemption is limited to the lesser of $500 or the amount they actually received.

    Ufile tip

    The software will automatically apply the scholarship exemption, and report the difference on line 13010.

     

    Related topics

  • Self-employment income (T4A box 048) Line 13500

    • Generally, a volunteer does not prepare tax returns for individuals who have self-employment or business income, however a self-employed individual does meet the CVITP eligibility criteria in certain situations. For more information on when a self-employed individual may qualify for the CVITP tax clinic eligibility, as well as all other eligibility criteria, please refer to About free tax clinics on Canada.ca.
    • 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 a T2125, Statement of Business or Professional Activities form must be included with the tax return.
    • The North American Industry Classification System (NAICS) code must be entered in form T2125 so the individual must provide enough information to find the correct six digit NAICS code.

    Ufile tip

    You must enter the income both as business income and as income from a T4A slip in order for the tax software to properly report the income and generate form T2125. Be advised that reporting this income in the two places is mandatory and does not duplicate the income on the tax return.

     

    Related topics

  • Workers' compensation benefits (T5007) Line 14400

    • Workers' compensation benefits are non-taxable.
    • The amounts are found in box 10 of the T5007 slip and must be reported as income.
    • If an individual paid back their employer for any workers’ compensation benefits and they have an amount in box 77 of their T4 slip, the software automatically claims a deduction on line 22900.

    Ufile tip

    The software automatically claims a deduction on line 25000.

     

    Related topics

  • 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.
    • If an individual lived with their spouse or common-law partner when the social assistance payments were received, the one with the higher net income (line 23600 net income) minus these payments, must report the totality of the social assistance payments, no matter whose name is on the slip.
      • Answering questions in the software ensures these payments are reported in the correct income tax return.

    Ufile tip

    The software automatically claims a deduction on line 25000.

     

    Related topics

  • Net federal supplements paid (T4A(OAS)) Line 14600

    • Generally, the guaranteed income supplement (GIS) received in the tax year, and the net amount of a spouse's allowance, are non-taxable.
    • The amounts are found in box 21 of the T4A(OAS) slip and must be reported as income.
    • The software automatically calculates a deduction on line 25000 of the tax return.
    • These amounts are not eligible for the Pension income amount on line 31400 or the Elected split-pension amount on lines 11600 and 21000.

    Related topics

Did you find what you were looking for?

What was wrong?

You will not receive a reply. Telephone numbers and email addresses will be removed.
Maximum 300 characters

Thank you for your feedback

Date modified: