# T1 General 2014



## jrsaballa (Nov 22, 2015)

So I'm looking at this form right now for some practice.
http://www.cra-arc.gc.ca/E/pbg/tf/5006-r/5006-r-fill-14e.pdf

Can I specify that I am to complete Line 130 "Other Income" for foreign dividend income ONLY


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## jrsaballa (Nov 22, 2015)

How about line 121 "Interest and other investment income (attach Schedule 4)" ?

Is it one or the other?

*Sorry first time filing income tax return in 2016"


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## Eclectic12 (Oct 20, 2010)

The T1 form line 130 is for "Use this line to report taxable income that has not been or should not be reported anywhere else on the return". The tax guide indicates that line 121 is for "foreign interest/dividends" ... so I can't see line 130 as the proper spot when another line has already been identified.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/121/frgn-eng.html


One can find line 121 on both the T1 form as well as Schedule 4 line 121. 

As I understand it, the first thing to figure out is whether the dividends are in a foreign currency. If they are, one needs to use the Bank of Canada exchange rate to convert to Canadian dollars as all Canadian tax forms are to use Canadian dollars.

If the broker automatically converted from the foreign currency to Canadian dollars ... then the T5 should already report the CAD so I expect the numbers can be used as-is.

Once the foreign dividends total are in CAD, I believe one enters the dividends on Schedule 4 part II "Interest and other Income". This will be subtotaled on line that is marked that it should be transferred to the T1 form, line 121.


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## Eclectic12 (Oct 20, 2010)

As a side note, if you are comfortable with computers ... I'd use tax software.

Using tax software ... there is usually a form view or interview section that would ask about the T5 form. Putting the numbers under the T5 form will automatically mean the numbers are put into the correct spot on schedule 4 which would then be carried over to the appropriate spot on the T1 form.

For example, entering a T5 with eligible dividends (I'm more familiar with where these than foreign dividends) in the software means that Schedule 4 line 6 has the matching number and that after all sources have been added up (ex. multiple T5 forms), the appropriate total is entered on T1 form on the appropriate line.


Doing the tax return on paper means you have to enter the number correctly from the T5 form on schedule 4, on the correct line ... the total has to be added up/entered on schedule 4 and the note indicating that this number must also be entered on the T1 form on the appropriate. It is a lot of manual effort with a lot of places one can make a mistake (ex. copy wrong number from the T5 form, make a math error adding up the total or missing that the total from schedule 4's line needs to be correctly copied to the T1 form.


If you download/install StudioTax for the 2014 tax year ... you can practice and see where the numbers all flow to - without worrying about missing something or a math error. 
http://studiotax.com/en/

As an added bonus, tax software that is NetFile certified means that if you are eligible for NetFile ... there is no need to print anything to mail or drop off to CRA.
http://www.cra-arc.gc.ca/netfile/


Cheers


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## Spudd (Oct 11, 2011)

First-time filers cannot use Netfile, though. But you can still use a program to do your taxes and just print out the tax return at the end to mail in. 

However, since you only have dividend income, it should be a pretty straight-forward return, may be easier to just do it on paper.


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## Eclectic12 (Oct 20, 2010)

Good point about first time filers & NetFile.

As for one source of income means paper is easier ... are you saying there has been some sort of improvement to the paper process?

Sure ... there's only one source of income, so a lot of the sub-totals are going to end up the same which simplifies things a bit. From what I recall of the last paper return I did, in addition to the T1 form plus schedule 4 - the OP will need to calculate the Federal tax on schedule 1 and provincial tax then transfer these numbers back to the T1 form.

It seems to me an easier process to:
a) download software
b) install software
c) identify there is a T5 slip where the numbers form the slip are entered in the matching box.
d) review return where it should be ready to print/assemble/mail in.

[Note that I left out the entering of name/address/DOB/province of residence etc. as this has to happen for both paper and software the first time. Another advantage for the software is that where the same one is used, this info can be automatically imported.] 


Now if the OP has trouble with computers/software or a thorough understanding of the tax return is desired, a paper form is a good choice.


Cheers


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## Spudd (Oct 11, 2011)

Eclectic12 said:


> Good point about first time filers & NetFile.
> 
> As for one source of income means paper is easier ... are you saying there has been some sort of improvement to the paper process?


I just meant, there won't be very many lines to fill out since there's not a bunch of different sources of income, and presumably not a bunch of deductions either. So it shouldn't be too much effort. Personally I would probably still use software but I used to do my taxes on paper as a teenager, I'm sure it's fully doable.


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## jrsaballa (Nov 22, 2015)

Which is more correct?

The CRA Tax Guide?

or Taxtips.ca Income Tax Calculator for 2016?


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## Eclectic12 (Oct 20, 2010)

The CRA tax guide with the matching forms (i.e. T1 tax return, schedules 1 through 9, provincial tax form etc.) is what CRA is using.
CRA does not care about the Taxtips calculator so if they disagree, CRA will ignore it and use their forms.

Taxtips is generally accurate so likely the two will agree.
I suspect if they disagree that something has been added that should not have or something has been missed.


Cheers


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