TurboTax: Interest Income & Tuition Credits

 

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Relevant Material: "In Canadian tax context, T5 refers to a specific tax slip for reporting investment income, and line 121 (now line 12100) is the specific line on the personal income tax return where that interest and other investment income is reported to the Canada Revenue Agency (CRA). 
T5 Slip (Statement of Investment Income)
The T5 slip is an information return that financial institutions, corporations, or other payers use to report various types of investment income paid or credited to a Canadian resident during a calendar year. 
  • Purpose: It ensures that taxpayers report all their investment earnings to the CRA.
  • Income Reported: It primarily details interest, dividends, and certain foreign income. Examples include interest from bank accounts, Guaranteed Investment Certificates (GICs), bonds, and royalties.
  • Issuance Threshold: Generally, a T5 slip is only issued if the total annual investment income is $50 or more, but the recipient must still report all income even if a slip is not received. 
Line 121 / Line 12100 (Interest and Other Investment Income)
Line 121 (now renumbered as line 12100 in recent tax years) is a specific entry on the Canadian T1 General personal income tax return form. 
  • Purpose: This line is where individuals report the total amount of interest and other investment income they earned during the tax year, which contributes to their total income calculation.
  • Source of Information: The amounts entered on this line typically come directly from boxes on the T5 slips (specifically boxes 13, 14, 15, and 30), T3 slips, or T5013 slips.
  • Scope: It includes interest earned from bank accounts, GICs, corporate bonds, and even interest paid by the CRA on a tax refund. Taxpayers are required to convert any foreign investment income to Canadian dollars before reporting it on this line. ..." (Google) 
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