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If you reported dividends on line 12000 of your return, claim on line 40425 of your return the total of the dividend tax credits from taxable Canadian corporations shown on your information slips. The dividend tax credit amounts are usually shown on a T5 slip, T4PS slip, T3 slip, and T5013 slip.
- Province Or Territory of Residence
The CRA needs this information to calculate your taxes and...
- T5 Slip
Boxes 10, 11, and 12 - Dividends from Canadian corporations...
- T3 Slip
The federal dividend tax credit to which you are entitled is...
- T5013 Slip
The T5013 Information slip for the authorized member of a...
- Province Or Territory of Residence
What Is The Dividend Tax Credit? The dividend tax credit is a non-refundable tax credit which applies when Canadian dividends are included in income. Foreign dividends do not qualify for the dividend tax credit. Both dividend tax credits are claimed on Line 40425 on the federal personal income tax return. The dividend tax credit for dividends ...
- Overview
- On this page
- Completing your tax return
- Loans and transfers of property
- Forms and publications
- Related topics
Canadian-source dividends are profits that you receive from your share of the ownership in a corporation.
There are two types of dividends – eligible dividends and other than eligible dividends – that you may have received from taxable Canadian corporations.
If you need more information about the type of dividends that you received, contact the payer of your dividends.
Dividends are usually shown on a T5 Slip, T4PS Slip, T3 Slip or T5013 Slip.
If you did not receive an information slip
Complete the chart for lines 12000 and 12010 using your Federal Worksheet or report your dividends on your return as follows:
Tax Tips
In some cases, it may be better for you to report all of the taxable dividends that your spouse or common-law partner received from taxable Canadian corporations. You can do this only if it allows you to claim, or increase your claim, for the spouse or common-law partner amount on line 30300 of your return. If you choose this option, do not include these dividends in your spouse's or common-law partner's income. You may be able to claim a dividend tax credit on line 40425 for dividends that you received from taxable Canadian corporations.
Special rules apply for income from property (including shares) that one family member lends or transfers to another.
You may have to report income, such as dividends (line 12000) or interest (line 12100) from property, including money and any replacement property, that you loaned or transferred to your spouse or common-law partner or a related minor (including a niece or a nephew) under 18 years of age at the end of 2023. This includes loans or transfers to a trust in favour of such a person.
You may also have to report capital gains (line 12700) from property that you loaned or transferred to:
•your spouse or common-law partner
•a trust for your spouse or common-law partner
For more information, see archived interpretation bulletins IT-510, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor, and IT-511R, Interspousal and Certain Other Transfers and Loans of Property, and Guide T4013, T3 Trust Guide.
•Income Tax Package
•Federal Worksheet
•Interpretation Bulletin IT-510 ARCHIVED, Transfers and loans of property made after May 22, 1985 to a related minor
•Interpretation Bulletin IT-511R ARCHIVED, Interspousal and Certain Other Transfers and Loans of Property
•Line 12100 – Interest and other investment income
•Line 30300 – Spouse or common-law partner amount
•Line 40425 – Federal dividend tax credit
•Provincial and territorial tax and credits for individuals
Continuing the previous example, Brian’s dividend tax credit on the federal level would be: $414 x 0.150198 = 62.18; $230 x 0.090301 = 20.77; $62.18 + $20.77 = $82.95
- 8 Camden St #101, Toronto, M5V 1V1, Ontario
Dec 20, 2023 · The $200 other than eligible dividend had a grossed up value of $200 x 1.15 = $230, so your federal tax credit = $230 X 9.0301 percent = $20.77; Total federal credit = $41.45 + $20.77 = $62.22; You will report the total federal credit amount in line 40425 of your income tax return. Why do you receive Dividend Tax Credit?
Boxes 10, 11, and 12 - Dividends from Canadian corporations other than eligible dividends Report as income the amount shown in box 11 on lines 12010 and line 12000 of your return. The dividend tax credit to which you are entitled is shown in box 12 and can be claimed at line 40425 .
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Mar 21, 2024 · Other than eligible dividend credit is $20.77 ($230 x 0.090301) The total federal dividend tax credit is $41.49. This credit amount will appear on her T5, T4PS, T3, or T5013 slips. She will pay $33.95 ($75.44 – $41.49) federal tax on the $300 dividend she received. Katherine must claim the tax credit on Line 425 on Schedule 1 of her federal ...
