Your net income is calculated by subtracting all allowable deductions from your total income for the year. It’s used to determine your federal and provincial or territorial non-refundable credits, or any social benefits you receive like the GST/HST credit or the Canada child benefit.
Like the name implies, total income refers to income that is received from all reportable sources of income like:
- Wage loss replacement
- Capital gains
- Social assistance payments or
This list is not complete. Refer to the Canada Revenue Agency’s (CRA) website for more examples of reportable income.
As you prepare your return, you might notice that certain pages require you to enter your net income for the current year. Locating this information in H&R Block’s tax software is pretty easy, though it might require you to jump ahead in your return.
Note: Before you access this information, make sure you’ve entered all of your slips and completed all other relevant sections of your return.
Follow these steps to locate your 2016 net income amount:
- On the WRAP-UP tab, click the SUMMARY icon. You’ll find yourself here:
- Under the Review your PDF tax summaries heading, click View next to the PDF summary that you’d like to take a look at:
- A PDF tax summary will download to your computer.
- Open the file. Your net income is reported on line 236.
Note: If you need this information to complete the Newcomers page in H&R Block’s tax software, you’ll also need to determine how much of the income reported on line 236 was earned while your spouse was living in and outside of Canada (if applicable).
What about deductions?
Allowable deductions (the amounts that are subtracted from your total income to determine your net income) can include:
- Registered pension plan (RPP) deductions
- RRSP contributions
- Union or professional dues
- Child care expenses
- Moving expenses
- Business investment loss or
- Employment expenses
This list is not complete. Refer to the CRA’s website for more examples of allowable deductions.
Where can I learn more?
- Line 236 – Net income (Canada Revenue Agency website)
- TP-1.D-V: Income tax return (Revenu Québec website)