Line 40424 – Federal tax on split income
Tax on split income (TOSI) applies to certain types of income of a children under 18 years of age at the end of 2024, and amounts received by adult individuals from a related business. Where TOSI applies, the disability tax credit, dividend tax credit and foreign tax credit can be used to reduce the individual's tax payable for the year.
For more information, see Form T1206, Tax on Split Income.
Tax on split income for multiple jurisdictions
If you have to pay TOSI and are also completing Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, complete Part 4 of Form T1206 to calculate the provincial tax based on TOSI amounts .
Completing your tax return
The specified individual must report the income on the appropriate lines of their return. However, they can claim a deduction on line 23200 of their return for this income.
To calculate the specified individual's tax on split income, complete Form T1206, Tax on Split Income. The special tax is included in the calculation of their federal and provincial or territorial taxes.
Supporting documents
Filing electronically
Keep all of the specified individual's documents in case the CRA asks to see them later.
Filing a paper return
Attach Form T1206 to the specified individual's paper return.
Forms and publications
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