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ARCHIVED - Total income

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• Amounts that are not taxed
• Retroactive lump-sum payments
• Loans and transfers of property
• Split income of a child under 18
• How to report
• Tax shelters
• Line 101 - Employment income
• Emergency volunteers
• Security option benefits (stock options)
• Commissions (box 42)
• Line 104 - Other employment income
• Line 113 - Old Age Security pension
• Line 114 - CPP or QPP benefits
• CPP or QPP disability benefit (box 16)
• CPP or QPP child benefit (box 17)
• CPP or QPP death benefit (box 18)
• Line 115 - Other pensions or superannuation
• Annuity and registered retirement income fund (including life income fund) payments
• Pensions from a foreign country
• Line 119 - Employment Insurance and other benefits
• Line 120 - Taxable amount of dividends from taxable Canadian corporations
• How to report
• Line 121 - Interest and other investment income
• How to report
• Bank accounts
• Term deposits, guaranteed investment certificates (GICs), and other similar investments
• Canada Savings Bonds (CSBs)
• Treasury bills (T-bills)
• Earnings on life insurance policies
• Line 122 - Net partnership income: limited or non-active partners only
• How to report
• Canadian certified feature films and productions
• Line 126 - Rental income
• Line 127 - Taxable capital gains
• How to report
• Line 128 - Support payments received
• Line 129 - RRSP income
• RRSPs for spouse or common-law partner
• Repayments under the Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)
• Line 130 - Other income
• Scholarships, fellowships, bursaries, (study grants), and artists' project grants
• Lump-sum payments
• Retiring allowances (severance pay)
• Death benefits (other than Canada or Quebec Pension Plan death benefits)
• Other kinds of income
• Lines 135 to 143 - Self-employment income
• Line 144 - Workers' compensation benefits
• Line 145 - Social assistance payments
• Line 146 - Net federal supplements

You have to include in income most amounts you received in 2003.

Amounts that are not taxed

You do not have to include certain amounts in your income, including the following:

• any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
• Quebec family allowances and the Allowances for Handicapped Children paid by the province of Quebec;
• compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
• lottery winnings;
• most gifts and inheritances;
• amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service; and
• most amounts received from a life insurance policy following someone's death.

Retroactive lump-sum payments

If you received a lump-sum payment of eligible income in 2003, parts of which were for previous years after 1977, you have to include the whole payment on the appropriate line of your return for 2003.

We will not reassess the returns for the previous years to include this income. However, you can ask us to tax the parts for the previous years as if you received them in those years. We can apply this calculation to the parts that relate to years throughout which you were resident in Canada, if

the total of those parts is $3,000 or more (not including interest) and the result is better for you. Eligible income includes:

• employment income and damages for loss of employment received by order or judgment of a competent tribunal, as an arbitration award, or under a lawsuit settlement agreement;
• periodic pension benefits, which do not include Canada or Quebec Pension Plan benefits (see "Line 114 - CPP or QPP benefits") or the final payment received when leaving a plan;
• wage-loss replacement plan benefits;
• support payments for a spouse, common-law partner, or child; and
• Employment or Unemployment Insurance benefits.

To ask us to apply this calculation, attach to your paper return all completed copies of Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment , that payers have given you. We will tell you the results on your Notice of Assessment or Notice of Reassessment.

Loans and transfers of property

You may have to report income, such as dividends (see "Line 120 - Taxable amount of dividends from taxable Canadian corporations") or interest (see "Line 121 - Interest and other investment income") from property (including money and any replacement property) you loaned or transferred to your spouse or common-law partner, child, or other relative. You also may have to report capital gains (see "Line 127 - Taxable capital gains") or losses from property you loaned or transferred to your spouse or common-law partner.

For details, get Interpretation Bulletin IT-510, Transfers and Loans of Property made after May 22, 1985 to a Related Minor , or IT-511, Interspousal and Certain Other Transfers and Loans of Property .

Split income of a child under 18

Certain income of a child who was born in 1986 or later is treated differently. This income is not subject to the rules discussed under "Loans and transfers of property" above. It is subject to a special tax, but also qualifies for a deduction. This applies to the following amounts received either directly or through a trust (other than a mutual fund trust) or partnership:

• dividends from shares (not including those in a mutual fund corporation or listed on a prescribed stock exchange); and
• shareholder benefits that relate to shares that are not listed on a prescribed stock exchange.

The above also applies to income from a trust (other than a mutual fund trust) or partnership for providing goods or services to (or in support of) a business operated by:

• someone related to the child at any time in the year;
• a corporation that has a specified shareholder who is related to the child at any time in the year; or
• a professional corporation that has a shareholder who is related to the child at any time in the year.

The special tax and deduction do not apply if:

• the income is from property inherited by the child and, during the year, he or she either is enrolled full-time in a post-secondary institution or qualifies for the disability amount (line 316 on Schedule 1);
• the income is from property the child inherits from a parent;
• the child was a non-resident of Canada at any time in the year; or
• neither of the child's parents lived in Canada at any time in the year.

How to report

The child still reports the income on the appropriate lines of his or her return. However, he or she can claim a deduction on line 232 for this income. The special tax is included in the calculation of his or her federal and provincial or territorial taxes. To calculate it, get Form T1206, Tax on Split Income . Attach a completed copy to the child's paper return.

Tax shelters

To claim deductions, losses or credits from tax shelter investments, attach to your paper return any applicable T5003 and T5013 slips, and a completed Form T5004, Statement of Tax Shelter Loss or Deduction . Make sure your form shows the tax shelter identification number.

Line 101 - Employment income

Enter the total of amounts shown in box 14 of all your T4 slips. If you have not received your slip by early April, or if you have any questions about an amount on a slip, contact your employer.

If you have employment expenses, see "Line 229 - Other employment expenses" for details.

Emergency volunteers

In 2003, you may have received a payment from a government, municipality, or other public authority for your work as a volunteer ambulance technician, firefighter, or search, rescue, or other emergency worker. If so, the T4 slip issued by such an authority generally will show only the taxable part of the payment, which is the part that is more than $1,000. However, if that authority employed you (other than as a volunteer) for the same or similar duties, the whole payment will be taxable.

Security option benefits (stock options)

You may have to report taxable benefits you received in (or carried forward to) 2003 on certain security options you exercised. However, you may be able to choose to defer reporting these benefits if you have not yet disposed of those securities.

For this to apply, you have to confirm certain information in writing with your employer, and file Form T1212, Statement of Deferred Security Options Benefits , with your paper return each year. For details, get guide T4037, Capital Gains , or contact us. Your Notice of Assessment or Notice of Reassessment will show the remaining balance of your deferred amounts.

Commissions (box 42)

Enter on line 102 the total commissions shown in box 42 on all your T4 slips you received as an employee. This amount is already included in your income on line 101, so do not add it again when you calculate your total income on line 150. If you have commission expenses, see "Line 229 - Other employment expenses".

If you are a self-employed commission salesperson, get guide T4002, Business and Professional Income , to determine how to report your commission income and claim your expenses.

Line 104 - Other employment income

Report on this line the total of the following amounts:

• Employment income not reported on a T4 slip - Include amountssuch as tips and occasional earnings.
• Net research grants - Subtract your expenses from the grant you received and include the net amount on this line. Your expenses cannot be more than your grant. Attach to your paper return a list of your expenses. For details, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance .
• Cleric's housing allowance - Include the amountshown on your T4 slip. You may be entitled to claim a deduction on line 231.
• Foreign employment income - Report your earnings in Canadian dollars (see "How do you report foreign income and other amounts?"). The amount on your United States W-2 slip may have been reduced by contributions to a "401(k) plan." Those contributions are not deductible on your Canadian return. Therefore, you have to add this amount into your income as well.
• Income-maintenance insurance plans (wage-loss replacement plans) - Box 28 of your T4A slip includes the payments you received from such a plan. There also should be a note on the slip identifying the amount. You may not have to report the full amount on your return. Report the amount you received, minus contributions you made to the plan after 1967, if you did not use them on a previous year's return to calculate the amount to report. For more information, get Interpretation Bulletin IT-428, Wage Loss Replacement Plans .
• Certain GST/HST and QST (Quebec sales tax) rebates - If you are an employee who paid and deducted employment expenses in 2002 or earlier, you may have received a GST/HST or QST rebate in 2003 for those expenses. If so, include on line 104 the rebate you received. However, a rebate for a vehicle or musical instrument you bought, for which you can claim capital cost allowance, is treated differently. Guide T4044, Employment Expenses , contains instructions on how to report such rebates, and information about capital cost allowance.
• Royalties - Include these amounts on this line if you received them for a work or invention of yours. Report other royalties (other than those included at line 135) on line 121.
• Amounts you received under a supplementary unemployment benefit plan (a guaranteed annual wage plan).
• Taxable benefit for premiums paid to cover you under a group term life-insurance plan - Include the amount in box 28 of your T4A slip.
• Employee profit-sharing plan - Include the amount in box 35 of your T4PS slip.

Line 113 - Old Age Security pension

Enter the amount in box 18 of your T4A(OAS) slip. For details on how to report the amount in box 21, see "Line 146 - Net federal supplements". If you do not have your T4A(OAS) slip, contact the nearest Income Security Programs office of Human Resources Development Canada.

Line 114 - CPP or QPP benefits

Enter the total Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits shown in box 20 of your T4A(P) slip. This amount is the total of the amounts in boxes 14 to 18. If your T4A(P) slip has an amount in box 16, 17, or 18, read whichever of the following sections apply to you.

Lump-sum benefits - If you received a lump-sum CPP or QPP payment in 2003, parts of which were for previous years, you have to include the whole payment on line 114 of your return for 2003. We will not reassess the returns for the previous years to include this income. However, if the total of the parts that relate to previous years is $300 or more, we will tax those parts as if you received them in those years if the result is better for you. Attach to your paper return the letter you received from Human Resources Development Canada and we will tell you the results on your Notice of Assessment or Notice of Reassessment.

CPP or QPP disability benefit (box 16)

Enter on line 152, located below and to the left of line 114, the amount of your CPP or QPP disability benefits from box 16. This amount is already included in your income on line 114, so do not add it again when you calculate your total income on line 150.

CPP or QPP child benefit (box 17)

Include a child benefit only if you received it because you were the child of a deceased or disabled contributor. Any benefits paid for your children are their income, even if you received the payment.

CPP or QPP death benefit (box 18)

If you received this amount and you are a beneficiary of the deceased person's estate, you can choose to include it either on line 114 of your own return, or on a T3 Trust Income Tax and Information Return for the estate. Do not report it on the deceased person's individual return. The taxes payable may be different, depending on which return you use. For more information, get guide T4013, T3 Trust Guide .

Line 115 - Other pensions or superannuation

Include on this line any other pensions or superannuation you received, such as amounts shown in box 16 of your T4A slips and box 31 of your T3 slips. Report on line 130 any amount in box 18 of your T4A slip or box 22 of your T3 slip.

You may also have to report on this line other amounts that you received. Read whichever of the following sections apply to you.

Annuity and registered retirement income fund (including life income fund) payments

Report an amount from box 24 of your T4A slip, box 16 or 20 of your T4RIF slip, or box 19 of your T5 slip as follows:

• If you were 65 or older on December 31, 2003, include it on line 115.
• Regardless of your age, if you received it because your spouse or common-law partner died, include it on line 115.
• Otherwise, report on line 130 the amount in box 24 of your T4A slip, or box 16 or 20 of your T4RIF slip. Report on line 121 the amount in box 19 of your T5 slip.

Pensions from a foreign country

Report in Canadian dollars the gross amount of your foreign pension income for 2003. See "How do you report foreign income and other amounts?". Attach a note to your paper return, identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income, and you may have to report them elsewhere on your return.

United States individual retirement account (IRA) - If, during 2003, you received amounts from an IRA or converted the IRA to a "Roth" IRA, contact us.

United States social security - Include on line 115 the full amount, in Canadian dollars, of your U.S. social security benefits. You can claim a deduction for part of this income. See "Line 256 - Additional deductions" for details.

Benefits paid for your children are their income, even if you received the payments.

Line 119 - Employment Insurance and other benefits

Enter the amount in box 14 of your T4E slip, minus any amount in box 18. If you already repaid excess benefits you received directly to Human Resources Development Canada, you may be able to claim a deduction. See line 232 for details.

Line 120 - Taxable amount of dividends from taxable Canadian corporations

Enter on line 120 the taxable amount of all dividends from taxable Canadian corporations, as shown in box 11 on T5 slips, box 31 on T4PS slips, box 32 on T3 slips, and in the "Details" area on T5013 slips. Report on line 121 any foreign dividends you received.

How to report

Enter the taxable amount of your dividendsfrom taxable Canadian corporations in Part I of Schedule 4. You have to report your dividends even if you did not receive an information slip. If you did not receive one, you can calculate the taxable amount of dividends you received by multiplying the dividends you actually received by 125%.

These dividends qualify for the dividend tax credit, which can reduce the amount of tax you pay. You can claim this credit when you calculate your federal and provincial or territorial taxes (see "Line 425 - Federal dividend tax credit").

Line 121 - Interest and other investment income

The amounts you report for the year depend on the type of investment and when you made it. Include on this line amounts you received, minus any part of those amounts 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.

The amounts to report include those shown in boxes 13, 14, and 15 on T5 slips, box 25 on T3 slips, and boxes 26 and 27 on T5013 slips. You also have to report the interest on any tax refund you received in 2003, which is shown on your Notice of Assessment or Notice of Reassessment.

If you received foreign interest or dividend income, make sure you report it in Canadian dollars. For more information, see "How do you report foreign income and other amounts?".

If, as a shareholder in a foreign corporation, you received certain shares in another foreign corporation, you may not have to include any amount in income for receiving those shares. For details, contact us.

How to report

Enter a list of your investments in Part II of Schedule 4. Generally, you report your share of interest from a joint investment based on how much you contributed to it.

Bank accounts

Report interest paid or credited to you in 2003, even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

Term deposits, guaranteed investment certificates (GICs), and other similar investments

On these investments, interest builds up over a period of time, usually longer than one year. Generally, you do not receive the interest until the investment matures or you cash it in. For information on Canada Savings Bonds, see "Canada Savings Bonds (CSBs)" on the next page.

The amount of income you report is based on the interest you earned during each complete investment year. For example, if you made a long-term investment on July 1, 2002, report on your return for 2003 the interest that accumulated to the end of June 2003, even if you do not receive a T5 slip. Report the interest from July 2003 to June 2004 on your 2004 return.

For most investments you made in 1990 or later,you have to report the interest each year, as you earn it. For information about reporting methods for investments made

in 1989 or earlier, use Info-Tax, one of our T.I.P.S. services (see "T.I.P.S. (Tax Information Phone Service)") or see Interpretation Bulletin IT-396, Interest Income .

Canada Savings Bonds (CSBs)

Interest on a regular interest ("R") bond is paid annually until the bond matures or you cash it in. Interest on a compound interest ("C") bond is not paid until you cash it in. For both kinds of bonds, report the amount shown on the T5 slip.

Treasury bills (T-bills)

If you disposed of a T-bill at maturity in 2003, you have to report as interest the difference between the price you paid and the proceeds of disposition shown on your T5008 slip or account statement.

If you disposed of a T-bill before maturity in 2003, you may also have to report a capital gain or loss. For details, get guide T4037, Capital Gains .

Earnings on life insurance policies

Report the earnings that have accumulated on certain life insurance policies in the same way as you do for other investments. In all cases, your insurance company will send you a T5 slip. For policies bought before 1990, you can choose to report accumulated earnings annually by telling your insurer in writing that you choose to do so.

Line 122 - Net partnership income: limited or non-active partners only

Enter on line 122 your share of the net income or loss from a partnership if the partnership did not include a rental or farming operation and you were either:

• a limited partner; or
• not actively involved in the partnership and not otherwise involved in a business or profession similar to that carried on by the partnership.

Report your net rental income or loss from a partnership on line 126. Report your net farming income or loss from a partnership on line 141.

If none of the above applies to you, enter your share of the partnership's net income or loss on the applicable self-employment line of your return (see lines 135 to 143).

If you have a tax shelter, see "Tax shelters".

How to report

• Complete Part III of Schedule 4.
• Attach to your paper return a T5013 slip. If you did not receive one, attach a copy of the partnership's financial statement. See "Lines 135 to 143 - Self-employment income" for more details.

Canadian certified feature films and productions

You may have invested in such a film or production for reasons other than to earn income from a business. If so, you can claim a deduction for capital cost allowance. For more information, including how to calculate your claim, see the back of Form T1-CP, Statement of Certified Productions , which the producer issues. File the form with your paper return.

Line 126 - Rental income

Enter your gross rental income on line 160 and your net rental income or loss on line 126. If you have a loss, show the amount in brackets. If you were a member of a partnership, you should also include any amount in box 20 of your T5013 slip, or any amount the partnership allocated to you in its financial statements.

You have to include with your paper return a statement (you can use Form T776, Statement of Real Estate Rentals ) showing your rental income and expenses for the year. If it applies, also include either your T5013 slip or a copy of the partnership's financial statement.

Guide T4036, Rental Income , contains Form T776 and more information about rental activities.

If you have a tax shelter, see "Tax shelters".

Line 127 - Taxable capital gains

You may have a capital gain or loss when property is disposed of, such as when real estate or shares (including those in mutual funds) are sold. Generally, if the total of your gains for the year is more than the total of your losses, you have to include 50% of the difference in your income. However, if the total of your losses for the year is more than the total of your gains, you cannot deduct the difference on your return for the year. See the section called "How to report".

If you have a capital gain or loss from redeeming your mutual fund units or shares, get information sheet RC4169, Tax Treatment of Mutual Funds for Individuals , for more details.

When you donate capital property to a charity, we consider you to have sold the property at its fair market value. As a result, you may have to report a capital gain or loss for that property. There are special rules for donations of certain property. For details, get guide T4037, Capital Gains , and pamphlet P113, Gifts and Income Tax .

How to report

Complete Schedule 3 and attach it to your paper return. Generally, if all of your gains or losses are shown on T4PS, T5, or T5013 slips, or on a financial statement from a partnership, enter the amounts on line 174 on Schedule 3, and if they are shown on T3 slips, enter them on line 176. Also attach these documents to your paper return. If your securities transactions are shown on an account statement or a T5008 slip, use the information on these documents to help you complete Schedule 3. For more information about these and other capital dispositions, get guide T4037, Capital Gains .

If the result on line 199 on Schedule 3 is positive (a gain), enter the amount on line 127 of your return. If it is negative (a loss), do not claim the amount on line 127 of your return. We will register it in our system. Keep track of this loss, which you can use to reduce your taxable capital gains of other years. The following "Notes" explain how to do this.

Line 128 - Support payments received

Enter on line 156 the total of all support payments for yourself or for a child that you received (or, if you are the payer, the payments were repaid to you under a court order) in 2003. Enter on line 128 only the taxable amount. For more details, get pamphlet P102, Support Payments .

Line 129 - RRSP income

Enter on line 129 the total of amounts shown in boxes 16, 18, 28, and 34 of all your T4RSP slips. Also include amounts in boxes 20, 22, and 26, unless your spouse or common-law partner made a contribution to your RRSP. See "RRSPs for spouse or common-law partner" later on this page for more details.

RRSPs for spouse or common-law partner

Your spouse or common-law partner may have to report some or all of the RRSP income shown in box 20, 22, or 26 of your T4RSP slips if he or she contributed to any of your RRSPs in 2001, 2002, or 2003. In that case, your T4RSP slip should have "Yes" checked in box 24, and your spouse or common-law partner's social insurance number in box 36.

To calculate the amount from an RRSP for spouse or common-law partner that each of you has to report, complete Form T2205, Amounts From a Spousal or Common-law Partner RRSP or RRIF to Include in Income . Both you and your spouse or common-law partner should include this form with your paper returns. However, only the person shown as the annuitant on the T4RSP slip can claim the income tax deducted (box 30) and should attach the slip to his or her paper return.

For more details on RRSP income, get guide T4040, RRSPs and Other Registered Plans for Retirement .

Repayments under the Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)

If, in previous years, you withdrew funds from your RRSP under the HBP or LLP, you may have to make a repayment for 2003. The minimum repayment is shown on your Notice of Assessment or Notice of Reassessment for 2002. To make a repayment, you have to contribute to your RRSP from January 1, 2003, to March 1, 2004, and designate your contribution as a repayment on line 6 or 7 of Schedule 7 (see "Schedule 7"). Do not make your repayment to us.

If you repay less than the minimum amount for 2003, you have to include the difference on line 129 of your return.

For more information, including the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident, get guide RC4135, Home Buyers' Plan (HBP) , or guide RC4112, Lifelong Learning Plan (LLP) .

Line 130 - Other income

Use this line to report taxable income that is not reported anywhere else on the return. To find out if an amount is taxable, contact us. Make sure you have read the instructions for lines 101 to 129 first. In the space to the left of line 130, specify the type of income you are reporting. If you have more than one type of income, attach a note to your paper return giving the details.

Scholarships, fellowships, bursaries, (study grants), and artists' project grants

Total all the amounts you received in 2003 (box 28 of your T4A slips). If you received any amounts (other than an artist's project grant) for a program for which you can claim the education amount for 2003 (see"Line 323 - Tuition and education amounts"), report only the part of the total amount that is more than $3,000. Otherwise, report on line 130 only the amount that is more than $500.

Report prizes and awards you received as a benefit from your employment or in connection with a business. However, these are not eligible for the $500 tax-free amount. If you received a research grant, see "Line 104 - Other employment income".

For more information, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance .

Lump-sum payments

Include lump-sum payments from pensions and deferred profit-sharing plans (box 18 of your T4A slips and box 22 of your T3 slips) received when leaving a plan.

If, in 2003, you received a lump-sum payment that included amounts you earned in previous years, you have to include the whole payment on line 130 of your return for 2003. However, you can ask us to apply a reduced tax rate to the part that relates to amounts you earned before 1972. To ask us to apply this special rate, attach a note to your paper return. We will tell you the results on your Notice of Assessment or Notice of Reassessment.

Retiring allowances (severance pay)

A retiring allowance includes an amount paid as severance pay. Include the amount in boxes 26 and 27 of your T4A slips.

Also, report any retiring allowance included in the amount in box 26 of your T3 slips. Details regarding the retiring allowance will be shown in box 36 and in the footnotes area of the slips.

Death benefits (other than Canada or Quebec Pension Plan death benefits)

A death benefit is an amount you receive after a person's death for that person's employment service. It is shown in box 28 of your T4A slips or box 35 of your T3 slips.

You may not have to pay tax on up to $10,000 of the benefit you received. If you are the only one to receive a death benefit, report the amount you receive that is more than $10,000. Even if you do not receive all of the death benefit in one year, the total tax-free amount for all years cannot be more than $10,000. To find out what to report if anyone else also received a death benefit for the same person, use Info-Tax, one of our T.I.P.S. services (see "T.I.P.S. (Tax Information Phone Service)") or see Interpretation Bulletin IT-508, Death Benefits .

Attach to your paper return a note stating the amount of death benefits you received but did not include in your income.

Other kinds of income

Also include the following amounts on line 130:

• amounts distributed from a retirement compensation arrangement;
• training allowances, Saskatchewan Pension Plan payments, or any other amount in box 28 of your T4A slips (other than amounts already mentioned for this line and line 104);
• payments from a trust shown in box 26 of your T3 slips;
• payments from a registered education savings plan shown in box 40 (see also "Line 418 - Additional tax on RESP accumulated income payments") or 42 of your T4A slips; and
• certain annuity payments (see "Line 115 - Other pensions or superannuation").

Lines 135 to 143 - Self-employment income

Enter on the appropriate line your gross and net income or loss from self-employment. If you have a loss, show it in brackets. Include with your paper return a statement showing your income and expenses.

If your fiscal period did not end on December 31, 2003, guide RC4015, Reconciliation of Business Income for Tax Purposes , will help you calculate the business income to report on your return for 2003. If you filed Form T1139, Reconciliation of 2002 Business Income for Tax Purposes , with your return for 2002, you probably have to complete the version of this form for 2003 and attach it to your paper return.

The following guides contain more information and forms you may need to help you calculate your self-employment income:

• T4002, Business and Professional Income (Form T2124, Statement of Business Activities, and Form T2032, Statement of Professional Activities)
• T4004, Fishing Income (Form T2121, Statement of Fishing Activities)
• T4003, Farming Income (Form T2042, Statement of Farming Activities) or RC4060, Farming Income and CAISP (Form T1163, Statement A - CAISP Account Information and Statement of Farming Activities for Individuals, and Form T1164, Statement B - CAISP Account Information and Statement of Farming Activities for Additional Farming Operations).

Generally, if you were a limited or non-active partner, you enter your net income or loss on line 122. However, if your net income or loss is from a rental operation, enter the amount on line 126. If it is from a farming operation, enter it on line 141.

If you were an active partner and received a T5013 slip, report the amount from box 18 on the line of your return shown in box 05. This is your share of the partnership's net income or loss. Also report the partnership's gross income as shown in box 51. Attach the T5013 slip to your paper return. If you did not receive this slip, you should attach the applicable self-employment form indicated above, or a copy of the partnership's financial statement.

For more information, contact our Business Enquiries service. See "Contacting us".

If you have a tax shelter, see "Tax shelters".

Line 144 - Workers' compensation benefits

Enter the amount in box 10 of your T5007 slip. Claim a deduction on line 250 for the benefits you entered on line 144.

Line 145 - Social assistance payments

Generally, you enter the amount in box 11 of your T5007 slip or the federal part of your Quebec Relevé 5 slip. However, if you lived with your spouse or common-law partner when the payments were made, the one of you who has the higher net income on line 236 (not including these payments or the deductions on lines 214 or 235) has to report all of the payments, no matter whose name is on the slip. If this amount is the same for both of you, the person whose name is on the T5007 slip (or the prestataire on the federal part of the Relevé 5 slip) has to report them.

Claim a deduction on line 250 for the social assistance payments you entered on line 145.

Line 146 - Net federal supplements

Enter the amount in box 21 of your T4A(OAS) slip.

If your net income before adjustments (line 234) is $57,879 or less, claim a deduction on line 250 for the net federal supplements you entered on line 146. If the amount on line 234 of your return is more than $57,879, contact us to find out how much you can deduct on line 250.

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Date modified:

2003-12-12