# Questrade T5's received



## jrsaballa (Nov 22, 2015)

I received two T5's, I'm guessing the first one is for dividends and the second one is for stock appreciation(price of stock went up when sold).

Can I ask why the amount in box 15 for both is actually much higher than what is in my account?


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## jrsaballa (Nov 22, 2015)

Question #2 

Am I suppose to input the T5's I've received from Questrade on a T5 form at simpletax.ca or do I enter this info on OTHER FOREIGN INCOME AND FOREIGN TAX CREDITS?


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## Woz (Sep 5, 2013)

For question #2, you enter the T5s in simpletax and it will automatically get added to the Foreign Tax Credits section. You can add up the box 16s just to make sure it adds up.

For your first question, you don't get a T5 for stock appreciation when you sell. You have to calculate and report that yourself. I'm not sure why Questrade would've split up your T5s, it might be they split it up by account or source (NYSE vs TSE), but I'm not sure.

What do you mean by box 15 is higher than what is in your account? Do you mean it's more than the dividends you received or more than your account balance? Box 15 is your foreign dividends before any withholding tax, so Box 15 minus Box 16 should be the amount of dividends you received.


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## jrsaballa (Nov 22, 2015)

Box 15 is more than the dividends I've received.

Are you sure Box 16 is not foreign taxes paid instead of withholding tax?


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## Woz (Sep 5, 2013)

Yes, Box 16 is foreign taxes paid, but that's what your withholding taxes are. They're withheld to pay taxes to foreign governments.

If it's all US foreign income then Box 16 should be 15% of Box 15. I'm not sure how Questrade displays dividends. Some brokerages show a separate line for the dividend amount and withholding taxes, while some combine the two. So if the dividends you've received is equal to Box 15 minus Box 16 then the difference is probably due to withholding tax.


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## Eclectic12 (Oct 20, 2010)

jrsaballa said:


> Box 15 is more than the dividends I've received.
> 
> Are you sure Box 16 is not foreign taxes paid instead of withholding tax?


The details section (i.e. not the boxes on the page) at CRA's link has some info.
http://www.cra-arc.gc.ca/E/pbg/tf/t5/README.html

CRA says box 15 is Foreign Income where one is to consult the tax guide for line 121 to get more info.
I don't know why it would be more than what one was paid.


Box 16 is foreign taxes paid and is used to calculate one's FTC, where line 405 is to be consulted.


Cheers


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## Eclectic12 (Oct 20, 2010)

Woz said:


> ... If it's all US foreign income then Box 16 should be 15% of Box 15 ...


Unless this includes the US partnership that has been referenced in other threads. In that case, I believe the US partnership portion would be something like a 40% tax rate.


Cheers


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## Eclectic12 (Oct 20, 2010)

jrsaballa said:


> Question #2
> 
> Am I suppose to input the T5's I've received from Questrade on a T5 form at simpletax.ca or do I enter this info on OTHER FOREIGN INCOME AND FOREIGN TAX CREDITS?


CRA introduced the auto-complete that will load what they have received from the financial institutions into the tax software.
http://www.cra-arc.gc.ca/auto-fill/


As some have discovered ... if one's investments do the calculations late like some ETFs and REITs, the financial institution won't have the T form which means what CRA sends will be incomplete.


Where one is not using autofill, one would identify to the software that a T5 was needed, fill out the common boxes and add the ones that do not have a box of their own. The software should correctly know what the income is and correctly apply for credits, record totals across multiple T5s onto the main T1 return etc.


Cheers


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## Eclectic12 (Oct 20, 2010)

jrsaballa said:


> ... the second one is for stock appreciation(price of stock went up when sold).


No ... if any form has the stock proceeds or cost, I believe it will be the T5008.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slps/fnncl/t5008/t5008slp/menu-eng.html


If the broker provides an annual trading summary instead of a T5008, then the investor has to use their own bookkeeping or the broker's cost number (sometimes right and sometimes wrong according to posts) to record the capital gain (or loss) on schedule 3, part 3 "Publically traded shares, Mutual Funds ... ".

I can't confirm as my US stock does not pay dividends, except for one that is held by a US transfer agent (i.e. no T5 will be provided but IRS equivalent is).




jrsaballa said:


> ... Can I ask why the amount in box 15 for both is actually much higher than what is in my account?


My guess is that the total for the two box 15's are the total foreign income paid. What is your account is this number minus the US taxes.
Again, I don't have anything in my brokerage account that allows me to confirm this .... maybe someone else who does can comment.


Cheers


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## AltaRed (Jun 8, 2009)

jrsaballa said:


> Can I ask why the amount in box 15 for both is actually much higher than what is in my account?


Your reference to Box 15 suggests this is foreign income (from dividends from US companies). It is higher than what you actually received by the amount of Box 16 (foreign taxes paid). What you see on your brokerage statements is the NET income to your account, i.e. you actually were paid dividend X, but had to have taxes Y withheld at source, so what was actually deposited to your account is Z (X less Y).


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## razz (Oct 21, 2014)

Woz said:


> Box 15 is your foreign dividends before any withholding tax, so Box 15 minus Box 16 should be the amount of dividends you received.


Also first time filling out my dividends, they are from a USD account. Do I have to convert the amounts in box 15 and 16 into CAD? If so what exchange rate do I use? Or do I just fill the USD amount?


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## AltaRed (Jun 8, 2009)

razz said:


> Also first time filling out my dividends, they are from a USD account. Do I have to convert the amounts in box 15 and 16 into CAD? If so what exchange rate do I use? Or do I just fill the USD amount?


Yes, they must be converted into CAD. Use the annualized exchange rate provided by the Bank of Canada and/or often mentioned in tax software as well.


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