Line 425 - Federal dividend tax credit

You have 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
• T5013A, Statement of Partnership Income For Tax Shelters and Renounced Resource Expenses

If you did not receive an information slip, how you calculate the divided 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 included on line 120 of your return. For other than eligible dividends, the federal dividend tax credit is 13.3333% of your taxable amount of dividends reported on line 180 of your return.

For more information about eligible and other than eligible dividends, see line 120.

Note
Foreign dividends do not qualify for the federal dividend tax credit.

Completing your tax return

Enter on line 425 of Schedule 1 the amount of your federal dividend tax credit.

Complete the tax and credit form for your province or territory of residence, as the provincial or territorial credit is calculated separately.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules

Related topics

• Line 120 - Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations