Interest and other investment income make up part of your total income and are reported on your return.
The amounts you include for the year depend on the type of investment and when you made it. Include amounts you received, minus any part that you reported in previous years. Also include amounts that were credited to you but that you did not receive, such as amounts that were reinvested.
Interest, foreign interest and dividend income, foreign income, foreign non-business income, and certain other income are all amounts you report on your return. They are usually shown on the following slips:
- T5, Statement of Investment Income
- T3, Statement of Trust Income Allocations and Designations
- T5013, Statement of Partnership Income
- T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses
You may not receive a slip if the amount is less than $50, but you still report this income.
Frequently asked questions
You also have to include the interest on any tax refund you received in 2006, which is shown on your Notice of Assessment or Notice of Reassessment.
Report your total foreign interest or dividend income in Canadian dollars. Use the exchange rate that was in effect on the day you received the income. If the amount was paid at various times throughout the year, use the average annual exchange rate. The average monthly rate as well as the daily rate are available by accessing the Bank of Canada web site.
If you paid foreign taxes on this income, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes (see lines 431 and 433 - Federal foreign tax credit). Do not reduce your foreign income by any foreign taxes you paid on it.
If you are a shareholder in a foreign corporation and received some shares in another foreign corporation, you may not have to include those other shares in income. For details, contact us.
Special rules apply to interest income if it is from property (including money) that one family member loaned or transferred to another family member. See Loans and transfers of property and IT510 and IT511.
You have to report any interest on money you invested in your child's name unless you deposited Canada Child Tax Benefit payments into his or her bank account or trust. That interest is your child's income.
If a child who was born in 1989 or later is reporting certain investment income, see Split income of a child under 18.
If you share an investment, report your part of the interest based on how much money you put into it.
Completing your tax return
Enter the total interest and investment income on line 121.
Forms and publications
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