Very soon, you will begin to receive tax slips from your employer, financial institution or other sources. Different tax forms are prepared for different reasons and the number & name may have cryptic meaning. Here is a list of the various tax slips that you can expect to receive this year and what they mean.
- T4 Summary – This is prepared by your employer and reports your Employment Income and Taxable Benefits. The T4 also tells you how much EI, CPP and income tax was withheld and remitted to the CRA by your employer.
- T4A Statement of Pension, Retirement, Annuity, and Other Income – This is issued if you receive amounts related to employment such as pensions or annuities.
- T4E Statement of Employment Insurance Benefits – If you were receiving EI during 2009, you can expect to receive this form that tells you how much EI benefits must be included in your income for tax purposes.
- T4RSP or T4RIF – If you took payments from an RRSP or RRIF, the amount of the withdrawal and the tax withheld is disclosed on these forms.
- T3 Statement of Trust Income Allocations and Designations – If you own mutual funds, are the beneficiary of a trust, or receive income from an estate you can expect to receive a T3 slip from the trustee or your broker. The T3 tells you how much income from the trust was allocated to you during the tax year. These amounts must be reported on your income tax return.
- T5 Statement of Investment Income – The T5 is issued by your investment brokerage and discloses any dividends and interest you received from your investments during the tax year.
- T10 Pension Adjustment Reversal – If you were a member of a pension plan and left your employer during the year, you might receive this form that adjusts your RRSP contribution room.
Capital Gains Tax Slips?
If you have read through this list and were looking for the tax slip you use to report your capital gains, you may have noticed it conspicuously missing.
You may see some capital gains on your T3. These are net capital gains allocated to your by the trust itself. However, if you own individual securities in your investment account or if you have sold mutual funds, you will not receive a tax slip showing the capital gain.
The cost base of your investments can be calculated by you and is the weighted average cost of all the individual investment. Your investment broker does not really know if you own the same securities elsewhere.