Line 12100 – Interest and other investment income

Note: Line 12100 was line 121 before tax year 2019.

Interest and other investment income form part of your total income and must be reported on your return.

Interest, foreign interest and dividend income, foreign income, foreign non-business income, and certain other income are all amounts that you report on your return as interest and other investment income. They are usually shown on your T5 slip, T3 slip, and Form T5013.

You may not receive a T5 slip if the investment income is less than $50, but you must still report the income.

You also have to report the interest on any tax refund that you received in 2022 as shown on your notice of assessment or reassessment.

Topics

• Bank accounts, term deposits, guaranteed investment certificates, and other similar investments
• Canada savings bonds
• Treasury bills
• Earnings on life insurance policies
• Foreign income

Bank accounts, term deposits, guaranteed investment certificates, and other similar investments

Bank accounts

Report interest paid or credited to you in 2022 even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

Generally, you report your share of interest from a joint bank account based on how much you contributed to it.

Term deposits, guaranteed investment certificates, and other similar investments

Interest builds up over a period of time, usually longer than one year, on these types of investments. Generally, you do not receive the interest until the investment matures or you cash it in.

For example, interest on a compound guaranteed investment certificate (GIC) is earned on a monthly basis and is automatically reinvested, earning compound interest until the bond is cashed or matures. Interest on a compound GIC is paid when the investment is cashed, and not annually.

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, 2021, report  the interest that accumulated up until the end of June 2022 on your 2022 return even if you do not receive a T5 slip. Report the interest from July 2022 to June 2023 on your 2023 return.

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 before 1990, see archived Interpretation Bulletin IT-396R, Interest Income.

Canada savings bonds (CSBs)

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 when it matured in 2022, you have to report the difference between the price you paid and the proceeds of disposition shown on your T5008 slip or account statement as interest.

If you disposed of a treasury bill before it matured in 2022, 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, the same way you do for other investments, from the T5 slip that your insurance company sends you.

For policies bought before 1990, you can choose to report accumulated earnings every year by telling your insurer in writing.

Foreign income

Report in Canadian dollars the foreign interest or dividend income that you received.

Use the Bank of Canada exchange rate in effect on the day that you received the income. If you received the income at different times during the year, use the average annual rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada.

If you paid foreign taxes on your interest or dividend income, you may be able to claim a foreign tax credit when you calculate your federal (see line 40500) and provincial or territorial taxes (Form 428). Do not subtract the taxes from your income when you report it.

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.

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

For more information, contact the CRA.

Completing your tax return

Complete the chart for line 12100 using your Federal Worksheet and enter the result on line 12100 of your return.

Generally, you report your share of interest from a joint investment based on how much you contributed to it. 

Forms and publications

• Income Tax Package – Guide, return, and schedules
• Federal Worksheet
• Form T1135, Foreign Income Verification Statement
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Form T2209, Federal Foreign Tax Credits
• Guide T4037, Capital Gains
• Interpretation Bulletin IT-396R ARCHIVED, Interest Income
• Interpretation Bulletin IT-510 ARCHIVED, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor
• Interpretation Bulletin IT-511R ARCHIVED, Interspousal and Certain Other Transfers and Loans of Property

Related topics

• Line 22100 – Carrying charges, interest expenses, and other expenses
• Line 12700 – Taxable capital gains
• Line 40500 – Federal foreign tax credit