T3: Statement of Trust Income Allocations and Designations

If you’ve received a T3: Statement of trust income allocations and designations slip, it means that you’ve most likely earned investment income from one of the following sources:

  • Mutual funds in a non-registered account
  • A personal trust or
  • From the estate of someone who passed away

Note: For a complete list of income sources reported on a T3, refer to the breakdown on the back of the slip.


What kind of income is reported on a T3 slip?

Your T3 slip will show income earned in the form of dividends, interest, and capital gains. It’s important to remember that if the income is earned from investments held within a trust, it’s taxable every year – even if it hasn’t been paid out yet. Of course, this also means that you won’t have to pay taxes on the funds once they are actually paid.


I have income from a communal organization

If you have an amount in box 26 of your T3 slip and you received all or part of this income from a communal organization, you’ll need to report self-employment income and complete the T2125: Statement of business or professional activities page in H&R Block’s tax software.

To add the T2125 page to your return:

  1. On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled I worked for myself and choose your province or territory of self-employment.

  3. Click the EMPLOYMENT icon. You’ll find yourself here:

  4. Under the BUSINESS AND SELF-EMPLOYMENT INCOME section, select the checkbox labelled Statement of business or professional services, then click Continue.

  5. When you arrive at the Statement of business or professional servicespage, enter your information into the tax software.

I have a taxable gain from disposing of eligible capital property

If you have an amount in box 26 of your T3 slip, you’ll need to enter how much of it is farming or fishing income that resulted from the sale of eligible capital property (such as qualified farm or fishing property).


What if I don’t receive a T3 slip?

On occasion, you might not receive a T3 slip. This might be because the dividends, interest, or capital gains that you’ve earned is less than the Canada Revenue Agency’s (CRA) threshold amount.

Generally speaking, you won’t receive a T3 slip if the interest earned for the year is less than $50, or if the dividends or capital gains are less than $1.00. Having said that, the CRA says it’s still your responsibility to report these amounts on your return.

In addition to a T3 slip, residents of Québec will also receive a Relevé 16: Trust income (RL-16) slip. Like the T3 slip, you might not receive an RL-16 slip if the amounts earned within the trust are below a certain amount. For example, if the income you earned from investments within a trust is less than $100, it’s likely you won’t be issued an RL-16 slip. Like the CRA, Revenu Québec still requires you to report these amounts when completing your return.


Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

  1. On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:


  2. Type T3 in the search field and either click the highlighted selection or press Enter to continue.

  3. When you arrive at the page for your T3, enter your information into the tax software.