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Do you have investments such as stocks or a savings account that generate returns? Then you’ll need a T5 once tax season rolls around.
What is a T5 Slip?
Also known as the Statement of Investment Income, a T5 slip is one of CRA's taxpayer slips Canadian residents file to report their income from various investments. The financial institution where you’ve opened your investment account will generate a T5 for you, but keep in mind that the 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. However, you must report all income in the T5, which calls for accurate recordkeeping.
Where Do I Send My T5 Slip?
You can complete the T5 online, which is the most convenient way to file your taxes. You can also download the T5 and other taxpayer slips from CRA's official site, fill them out, and mail them to CRA offices in your province. However, NETFILE and EFILE online submissions will save you the time, unless you want hard copies to review.
Who Should Fill Out a T5?
Most T5 slips are filled out and issued by the financial institution that holds your investment accounts or savings accounts that pay returns. This includes dividends from shares, interests from savings accounts, royalties, annuities, bonds, and accounts with brokers or dealers. If you invest and earn income above $50, the financial institution paying this income will issue a T5 slip.
How to Get a T5 Online?
The easiest way to get a T5 taxpayer slip is online through the financial institution that manages your investment or savings account. You can also get the T5 slip directly from your CRA account. Go to CRA's official website and log in to your account. If you don't have an account with the CRA, you should create one as soon as possible. Under CRA My Account, you will find all of your different taxpayer slips, including the T5.
Who Claims Income on A Joint-Issued T5?
If a T5 slip features multiple companies or both spouses' names, the two will have to calculate how much income each will claim. Spouses are supposed to claim the amount that they’ve contributed.
T5 Breakdown
The T5 slip features various boxes that specify what income and information to enter. Here's a breakdown of all boxes you will encounter in the T5:
| Box | Meaning |
|---|---|
| Box 10, Box 11 and Box 12 | These boxes are for dividends from Canadian corporations other than eligible dividends from Canadian corporations. 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 CRA applies to the total amount of taxes that you owe. |
| Box 13, Box14, Box 15 and Box 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 on line 13500. Otherwise, enter your royalties on line 12100 of the income return statement. |
| Boxes 18 and Box 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 for accrued income and Box 30 for equity linked notes interest. You should enter annuities and accrued income in line 12100 of the return unless you were 65 or older before the end of the tax year. In this case, enter the amount on line11500. This also goes for income earned due to the death of a spouse or legal partner. |
| Box 24, Box 25 and Box 26 | These boxes are for all eligible dividends from Canadian corporations, where you report all dividends, except for those reported in boxes 10, 11 and 13. Box 24 is for the actual amount (dividend), while 24 is for the taxable income, which you report on line 12000 of your tax return. Box 26 shows the tax credits and you can claim this on line 40425. |
| Box 30 | This is where you 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 the tax report. Other boxes (27, 28 and 29) specify currency identification codes and recipient account. |
When to File T5
All taxpayers should receive their T5 slips before the last day of February, and submit it as part of their tax return at the end of April. Failure to include T5 slips in your income for the second time in four years will likely result in penalties from the CRA. This includes interest on the balance due. The CRA expects taxpayers that receive late or amended T5 slips to file the T1-ADJ (adjustment request) immediately to report their income discrepancy.
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