Line 425 - Federal dividend tax credit
You can claim a federal dividend tax credit if you reported dividends on line 120 of your return.
The dividend tax credit amounts are usually shown on the following slips:
- T5, Statement of Investment Income
- T4PS, Statement of Employees Profit Sharing Plan Allocations and Payments
- T3, Statement of Trust Income Allocations and Designations
- T5013, Statement of Partnership Income
If you did not receive an information slip, your calculation for the dividend tax credit will depend on the type of dividend. For eligible dividends, the federal dividend tax credit will be 15.0198% of your taxable amount of eligible dividends reported on line 120 of your return. For "other than eligible dividends", the federal dividend tax credit is 11.0169% of your taxable amount of dividends reported on line 180 of your return.
For more information about eligible dividends and "other than eligible dividends", see line 120.
Foreign dividends do not qualify for the federal dividend tax credit.
Completing your tax return
Claim on line 425 of Schedule 1 the amount of your federal dividend tax credit.
Forms and publications
- Line 120 - Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations
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