We’ll calculate your investment income and expenses on your federal tax return with Schedule 4. If you’re a resident of Québec, you’ll also need to complete Schedule N to report your investment expenses.
Note: When you enter the following slips using the QUICK SLIP page of H&R Block’s tax software, your investment income information will be automatically transferred onto your Schedule 4:
- T5: Statement of investment income
- T5013: Statement of partnership income
- T4PS: Statement of employees profit sharing plan allocations and payments
- T3: Statement of trust income allocations and designations
- Relevé 3: Revenus de placement
- Relevé 15: Amounts allocated to the members of a partnership
- Relevé 16: Revenus de fiducie
- Relevé 25: Income from a profit-sharing plan
If you didn’t receive these slips, but you earned investment income during the year, you’ll need to manually complete your Schedule 4.
Keep in mind, you’ll still need to complete other sections of the Schedule 4.
Completing your Schedule 4
Your Schedule 4 has three separate sections:
- Taxable amounts of dividends (eligible and other than eligible) from taxable Canadian corporations
- Interest and other investment income
- Carrying charges and interest expenses
You’ll need to complete your Schedule 4 if you have any of these sources of interest or investment income:
- Interest from bank accounts, term deposits, guaranteed investment certificates, or Canada savings bonds
- Treasury bills
- Earnings on a life insurance policy
- Foreign interest
- Interest earned on a mortgage (this is a mortgage you’ve given to someone for investment purposes)
- A statement of interest on your notice of assessment from the Canada Revenue Agency (CRA)
You’ll also need to complete your Schedule 4 (as well as your Schedule N as a resident of Québec) if you have any of these carrying charges and interest expenses to report:
- You paid someone to give you investment advice or manage your portfolio, like having your investment income recorded for you
- You paid interest on money you borrowed to invest/earn investment income (excluding RRSPs or a TFSA)
- You paid interest on a policy loan made to earn income
- You paid legal fees related to receiving support payments
- You paid someone to complete your return if you have income from a business or property
Note: Don’t enter any safety box charges, subscription fees for financial newspapers or magazines, or legal fees you paid to get a separation or divorce on this page. Visit the Canada Revenue Agency (CRA) site for more information on what investment expenses can be claimed.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I had investments and/or investment income, or I bought and/or sold property.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the INVESTMENT INCOME section, select the checkbox labelled Statement of investment income (Schedule 4).
- When you arrive at the page for your Statement of investment income, enter your information into the tax software.