Locality code data

Description of income items

• Employment income
• Pension income
• Investment income
• Self-employment income
• Other income
• Tax exempt income
• Total income, non-taxable components, and other comments

Employment income

Employment income includes:

• Employment income (box 14 on all T4 slips) — Line 101 of the return
  This amount (including commission income) is from T4 slips reported on line 101 (and 102) of the T1 return and
• Other employment income reported on line 104 of the return

Pension income

Pension income includes:

• Old Age Security pension — Line 113 of the return
  This amount comes from the Old Age Security pension plan. People 65 years of age or over receive an annual total of $6,203.52.
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits — Line 114 of the return
  This item includes death and disability benefits, and child benefit, if received by a child of a deceased or disabled contributor.
• Other pensions or superannuation — Line 115 of the return
  In addition to income from registered pension plans, this item includes income from registered retirement income funds, deferred profit-sharing plans, foreign pensions, etc.
• Elected split-pension amount — Line 116 of the return
  This is the amount of elected split-pension amount from line E of Form T1032, Joint Election to Split Pension Income.

Investment income

Investment income includes:

• Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations — Line 120 of the return
  This is the total dividend value, plus a 45% gross-up for the eligible dividends and a 25% gross-up for the dividends other than eligible dividends
• Interest and other investment income — Line 121 of the return
  This item includes interest, foreign interest or dividend income, etc.
• Taxable capital gains — Line 127 of the return
  This amount represents 50% of the capital gains realized in 2009.

Note: It is possible for deceased tax filers to claim capital losses at line 127. However, these amounts are not included in the total income calculation at line 150. They are deducted from the net income when calculating their taxable income at line 260. Therefore, this item only represents positive values found at line 127.

Self-employment income

Self-employment income presented here corresponds to net income, i.e., the gross income, less any adjustments and expenses incurred. Self-employment income includes the following:

• Net rental income — Line 126 of the return
  This is rental income after expenses.
• Net business income — Line 135 of the return
  This item is the income from businesses and partnerships. A business is an activity intended to carry on for profit.
• Net professional income — Line 137 of the return
  This refers only to income from independent practice, such as earnings by self-employed accountants, doctors, dentists, and lawyers. However, when a professionally qualified person is employed by a company, government, or institution, this individual's income is included in Employment income.
• Net commission income — Line 139 of the return
  This item shows net commission income for self-employed people -- such as real estate agents -- who are working in sales and earning commissions.
• Net farming income — Line 141 of the return
  Self-employed farmers, including beekeepers, tree farmers, etc., report their income on this line.
• Net fishing income — Line 143 of the return
  This item shows the net income from self-employed people fishing as boat owners or crew members, or fishing from shore.

Other income

Other income includes the following:

• Universal Child Care Benefit (UCCB) — Line 117 of the return
  Since July 2006, an eligible individual responsible for the care of a child under 6 years of age, is eligible to receive $100 per month for each qualified dependant.
• Employment Insurance and other benefits — Line 119 of the return
  This represents benefits from the Employment Insurance Plan.
• Net partnership income: limited or non-active partners only - Line 122 of the return
  This is the share of the net business income or loss from limited partnerships.
• Registered disability savings plan income — Line 125 of the return
  This item includes the registered disability savings plan income, the amount shown in box 28 of the T4A slip.
• Support payments received — Line 128 of the return
  This is the taxable part of support payments received.
• RRSP income — Line 129 of the return
  This item refers to income from an RRSP (registered retirement savings plan).
• Other income — Line 130 of the return
  This item contains the following incomes reported on line 130 of the return:
  
  
  • Scholarships, fellowships, bursaries, and artists' project grants;
  • Apprenticeship incentive grant;
  • Apprenticeship completion grant;
  • Lump-sum payments from pensions and deferred profit-sharing plans when leaving a plan;
  • Retiring allowances (severance pay);
  • Death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits);
  • Other kinds of income (see the General Income Tax and Benefit Guide - 2009 for more details).

Tax exempt income

Tax exempt income includes the following items:

• Workers' compensation benefits — Line 144 of the return
  This is the amount of compensation paid in respect to an injury, disability, or death to an employee, or surviving spouse/common-law partner, under the law of Canada or a province or territory. These amounts are shown on a T5007, Statement of Benefits slip.
• Social assistance payments — Line 145 of the return
  This item shows the payments made to beneficiaries or third parties based on a means, needs, or income and include payments for food, clothing, and shelter requirements. These payments are shown on a T5007, Statement of Benefits slip.
• Net federal supplement — Line 146 of the return
  This refers to the net amount of any Allowance, Allowance for the survivor, or Guaranteed Income Supplement received in the year, box 21 on the T4A(OAS) slip.

Total income, non-taxable components, and other comments

Total income — Line 150 of the return
This item contains the amount reported on line 150 of the return, or the total of the previous income items. This item does not include non-taxable income from the following:

• any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
• child assistance payments and the supplement for handicapped children paid by the province of Quebec;
• compensation received from a province or territory for 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;
• most amounts received from a life insurance policy following someone's death;
• most payments of the type commonly referred to as strike pay received from a union; and
• most amounts received from a Tax-Free Savings Account (TFSA).

Note: Income earned on any of the above amounts (such as interest earned from the investment of lottery winnings) is taxable.

Some parts of total income are in gross amounts, while others are in net amounts. For example, eligible dividend income is grossed-up to represent 145% of such income. Interest and investment income are also gross figures since carrying charges are not deducted (i.e., netted out). On the other hand, taxable capital gains are net amounts because only 50% of the gains realized in 2009 are reported.

Date modified:

2012-01-31