Do you have investments such as stocks, or a savings account that generates returns? Then you’ll likely receive a T5 slip once tax season rolls around.
What is a T5 slip?
Also known as the Statement of Investment Income, a T5 slip is one of the various taxpayer slips Canadian residents might receive to report their investment income in non-registered accounts. The financial institution where you’ve opened your investment account is responsible for generating your T5 for you, but keep in mind that the Canada Revenue Agency (CRA) doesn’t require a T5 for amounts under $50, so most financial institutions won't issue T5 slips if your income is below this amount. If you do receive a T5 slip, you must report this income when you complete your tax return, which calls for accurate recordkeeping.
Where do I send my T5 slip?
The CRA doesn’t require you to send in your slip when you file your tax return. After you receive your T5 slip from your financial institution, you’ll use the information on the T5 to complete your T1 tax return. Just be sure to keep a copy in case they ever ask you for it.
Who should fill out a T5?
Most T5 slips are filled out and issued by the financial institutions that hold your investment or savings accounts. This includes dividends from shares, interests from savings accounts, royalties, annuities, bonds, and any accounts with brokers or dealers. If you earn more than $50 in income on your investments, the financial institution paying this income will issue a T5 slip.
How do I get a T5 online?
The easiest way to get a T5 taxpayer slip online is through the financial institution that manages your investment or savings account. You can also get the T5 slip directly from your CRA My Account. (If you don't have an account with the CRA, you should create one as soon as possible.) Once you’ve logged in, you will find all of your different taxpayer slips under the "tax information slips" (T4 and more) section, including the T5.
Who claims income on a joint-issued T5?
If a T5 slip features multiple companies or both partners' names, you will have to calculate how much income each will claim. Each individual is supposed to claim the amount that’s directly proportional to the amount they contributed.
T5 breakdown
The T5 slip features various boxes that specify what information to enter on your tax return. Here's a breakdown of all the boxes you will encounter on your T5. Note: some boxes will need to be self-identified if needed — in these cases, identify a box in the “Other information” area as the box number your amount corresponds to.
| Box | Meaning |
|---|---|
| Boxes 10, 11, and 12 | These boxes are for non-eligible dividends from Canadian corporations, which are taxed less favorably than eligible dividends. Box 10 shows the actual amount (dividend) earned, while Box 11 shows the taxable amount, which is the income you should enter on your return. Box 12 is for the dividend tax credits that the CRA applies to the total amount of taxes that you owe. |
| Boxes 13, 14, 15, and 16 | Enter all interest earned from Canadian sources in box 13. Box 14 is for reporting other income you earn from Canadian sources, box 15 is for foreign income, and box 16 for foreign tax paid. Line 12100 has more details on how to report boxes 13, 14, 15, and 16 amounts on your return. You should also see line 40500 for how to calculate the credit on your foreign tax. |
| Box 17 | This is where you report all royalties you receive from Canadian sources. Report the income in line 10400 for all royalties from your work or invention. If the royalties have other expenses tied to them, report these on line 13500. Otherwise, enter your royalties on line 12100 of the income return statement. |
| Boxes 18 and 19 | Box 18 is for capital gains dividends, which are entered to line 17400 of the Schedule 3 Capital Gains or Losses section. Box 19 is for accrued income. You should enter annuities and accrued income on line 12100 of your return, unless you were 65 or older before the end of the tax year. In this case, enter the amount on line 11500. This also goes for income earned due to the death of a spouse or legal partner. |
| Boxes 24, 25, and 26 | These boxes are for all eligible dividends from Canadian corporations, except for those reported in boxes 10, 11, and 13. Box 24 is for the actual amount (dividend), while Box 25 is for the taxable income, which you report on line 12000 of your tax return. Box 26 shows the tax credits — you can claim these on line 40425. |
| Boxes 27, 28, 29, and 30 | Box 30 is where you’ll enter the calculated interest you get from the transfer or assignment of linked notes. (You should enter the interest from all equity linked notes on line 12100 of your tax return.) Boxes 27, 28, and 29 specify currency identification codes and your recipient account number. |
When should I file a T5?
All taxpayers should receive their T5 slips before the last day of February, and submit the information included as part of their tax return by the end of April. The CRA doesn’t require you to send in your T5 slip when you file your tax return, but be sure to keep a copy if they ever ask you for it. The CRA expects taxpayers that receive late or amended T5 slips to file an amended tax return either via ReFILE, using the CRA’s Change My Return service or by paper with a T1-ADJ (adjustment request) immediately to report their income discrepancy.
Last Updated
December 3, 2023
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I am a financial expert with extensive knowledge in investment-related matters, particularly in the context of taxation. I have hands-on experience dealing with various financial instruments, including stocks, savings accounts, and other investment vehicles. My expertise is grounded in practical understanding and a deep comprehension of the intricate details surrounding investment income reporting.
Now, let's delve into the concepts discussed in the article about T5 slips, also known as the Statement of Investment Income in Canada:
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T5 Slip Overview:
- A T5 slip, or Statement of Investment Income, is issued by financial institutions to Canadian residents for reporting investment income in non-registered accounts.
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Threshold for Issuance:
- Financial institutions typically issue T5 slips for investment income exceeding $50. Amounts below this threshold may not result in the issuance of a T5 slip.
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Reporting T5 Income:
- If you receive a T5 slip, it is essential to report the income accurately when completing your T1 tax return. Accurate recordkeeping is crucial for compliance.
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Submission of T5 Slip:
- The Canada Revenue Agency (CRA) doesn't require the physical submission of the T5 slip. Instead, you use the information on the T5 to complete your T1 tax return.
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Issuing of T5 by Financial Institutions:
- Financial institutions, where you hold investment or savings accounts, are responsible for issuing T5 slips. Various types of income, including dividends, interests, royalties, annuities, bonds, etc., are covered.
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Online Access to T5:
- The easiest way to obtain a T5 slip is through your financial institution's online portal. Alternatively, you can access it directly from your CRA My Account.
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Joint-Issued T5 and Income Allocation:
- In the case of a joint-issued T5 with multiple names or companies, individuals need to calculate and claim income proportionally based on contributions.
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Breakdown of T5 Boxes:
- The article provides a detailed breakdown of various boxes on the T5 slip, including non-eligible dividends, interest earned, foreign income, royalties, capital gains dividends, accrued income, eligible dividends, and more.
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Filing Deadline:
- Taxpayers should receive their T5 slips before the last day of February and submit the information as part of their tax return by the end of April.
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Handling Late or Amended T5 Slips:
- Taxpayers receiving late or amended T5 slips are expected to file an amended tax return promptly through ReFILE, Change My Return service, or by paper with a T1-ADJ.
It's crucial to stay informed about these concepts to ensure accurate reporting and compliance with tax regulations. If you have any specific questions or need further clarification on any of these points, feel free to ask.
