A T5 slip, also known as a Statement of Investment Income, is a tax document used in Canada to report various types of investment income earned by residents of the country. This income includes dividends, interest, royalties, annuities, and bonds. Financial institutions that hold investment or savings accounts are responsible for issuing T5 slips to their customers.
Key Facts
- Purpose: The T5 slip is used to report various types of investment income, such as dividends, interest, royalties, annuities, and bonds, that residents of Canada have to report on their income tax and benefit returns.
- Issuance: Financial institutions that hold your investment or savings accounts are responsible for issuing T5 slips. However, 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.
- Reporting: If you receive a T5 slip, you must report the income indicated on the slip when you complete your tax return. Accuracy in recordkeeping is important for reporting this income correctly.
- Filing: The CRA expects taxpayers to 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. However, you don’t need to send in your T5 slip when you file your tax return, but it’s recommended to keep a copy in case the CRA asks for it.
When is a T5 Slip Required?
The Canada Revenue Agency (CRA) requires financial institutions to issue T5 slips for investment income that exceeds $50 in a tax year. If your investment income falls below this threshold, you may not receive a T5 slip.
Reporting Investment Income
If you receive a T5 slip, it is essential to report the income indicated on the slip when completing your tax return. Accurate recordkeeping is crucial to ensure the correct reporting of this income.
Filing Deadlines
The CRA expects taxpayers to receive their T5 slips before the last day of February. The deadline for submitting your tax return, including the information from your T5 slip, is the end of April. While you are not required to send in your T5 slip with your tax return, it is advisable to keep a copy for your records in case the CRA requests it.
Sources
- T5 slip – Canada.ca
- What Is a T5 Slip? Return of Investment Income Explained | Wealthsimple
- Understanding your T5 tax slip | Investing Advice | Affinity Credit Union
FAQs
What is a T5 slip?
A T5 slip is a tax document used in Canada to report various types of investment income earned by residents of the country.
Who issues T5 slips?
Financial institutions that hold investment or savings accounts are responsible for issuing T5 slips to their customers.
When is a T5 slip required?
The Canada Revenue Agency (CRA) requires financial institutions to issue T5 slips for investment income that exceeds $50 in a tax year.
What information is included on a T5 slip?
A T5 slip includes information such as the type of investment income, the amount of income earned, and any applicable tax deductions or credits.
How do I use a T5 slip?
You must report the income indicated on your T5 slip when completing your tax return.
When is the deadline for filing a T5 slip?
The deadline for submitting your tax return, including the information from your T5 slip, is the end of April.
Do I need to send my T5 slip to the CRA?
No, you do not need to send your T5 slip to the CRA with your tax return. However, it is advisable to keep a copy for your records in case the CRA requests it.
Where can I get a copy of my T5 slip?
You can request a copy of your T5 slip from the financial institution that issued it to you. You may also be able to access your T5 slip online through the financial institution’s website or mobile app.