Interest and Other Investment Income

Interest and Other Investment Income

Both the federal and Quebec tax systems require you to report all interest income you earn. This includes interest from bank accounts, Guaranteed Investment Certificates (GICs), bonds, and other similar investments. The reporting for federal and Quebec purposes is based on separate tax slips but follows a similar process.

As a general rule, interest income is reported on RL-3, RL-13, RL-15, or RL-16 slips. If these slips were not issued, the corresponding information may appear on T3, T5, or T5013 slips. Taxpayers must also report any interest not shown on RL or federal slips, including:

• Interest received on loans made to individuals
• Interest earned on income tax refunds during the year

Bearer Debt Obligations

Interest earned on bearer debt obligations, such as Treasury bills or bank acceptances, can be calculated using RL-18 slips (T5008), account statements, or transaction records.

• If the securities are cashed in or disposed of after the maturity date, the difference between the proceeds of disposition (Box 21 of the RL-18 slip) and the purchase price is considered interest income.
• If the securities are cashed in or disposed of before the maturity date, the difference between the proceeds of disposition and the purchase price may also result in a capital gain or loss.

Investment income reported on various slips and boxes, see below:

Type of Income	Federal Slip (T1)	Boxes	Quebec (TP-1)
Interest & Dividends	T5 – Statement of Investment Income	Box 13: Canadian interest Box 15: Foreign income Box 25: Eligible dividends Box 11: Other than eligible dividends	RL-3 – Investment Income
Trust income	T3 – Statement of Trust Income Allocations and Designations	Various boxes for interest, dividends, capital gains	RL-16 – Trust Income
Securities transactions	T5008 – Statement of Securities Transactions	Box 21: Proceeds of disposition	RL-18 – Securities Transactions
Partnership income	T5013 – Statement of Partnership Income	Various boxes for partnership income	RL-15 – Partnership Income