T5

The T5, Statement of Investment Income, is issued by banks, credit unions, corporations and brokerages for interest, dividends, royalties and certain other investment income paid to Canadian residents. A T5 is required when the investment income paid to a person in the year is $50 or more, but income below $50 must still be reported.

KEY BOXES

• Box 10, Actual amount of dividends other than eligible dividends.

• Box 11, Taxable amount of dividends other than eligible dividends: box 10 grossed up by 15 percent, reported on line 12010.

• Box 12, Dividend tax credit for non-eligible dividends.

• Box 13, Interest from Canadian sources: reported on line 12100.

• Box 14, Other income from Canadian sources.

• Box 15, Foreign income; Box 16, Foreign tax paid: used for the foreign tax credit.

• Box 18, Capital gains dividends: reported on Schedule 3.

• Box 24, Actual amount of eligible dividends.

• Box 25, Taxable amount of eligible dividends: box 24 grossed up by 38 percent, reported on lines 12000 and 12010.

• Box 26, Dividend tax credit for eligible dividends.

JOINT ACCOUNTS

A T5 for a joint account usually shows the full amount in the name of one holder, or shows both names. Income must be reported in proportion to each person's contribution of the funds, not according to whose name appears first. Where one spouse contributed all the money, the attribution rules require all the income to be reported by that spouse.

ACCRUED INTEREST

For compound-interest investments such as multi-year GICs, interest must be reported every year on the anniversary date, even though it is not paid until maturity. The issuer reports the accrued amount on the T5 each year.