Canadian-source dividends are profits you receive from your share of the ownership in a corporation.
There are two types of dividends, eligible and other than eligible dividends, you may have received from taxable Canadian corporations.
If you need more information about the type of dividends you received, contact the payer of your dividends.
Dividends are usually shown on the following slips:
You can claim the dividend tax credit to reduce the amount of tax you have to pay. Do this when you calculate your federal taxes (line 425 on Schedule 1) and your provincial or territorial taxes (Form 428 for your province or territory).
In some cases, it may be better for you to report all the taxable dividends your spouse or common-law partner received from taxable Canadian corporations. You can do this only if, by including the dividends in your income, you will be able to claim or increase your claim for the spouse or common-law partner amount (line 303 on Schedule 1).
If you use this option, you may be able to take better advantage of the dividend tax credit. Do not include these dividends in your spouse's or common-law partner's income when you calculate claims such as the spouse or common-law partner amount on line 303 or amounts transferred from your spouse or common-law partner on Schedule 2.
Special rules apply to dividend income if it is from property (including shares) one family member lends or transfers to another family member. See Loans and transfers of property and interpretation bulletins IT-510 and IT-511.
For children born in born in 1995 or later reporting certain dividends, see Split income of a child under 18.
Enter on line 180 the taxable amount of dividends (other than eligible dividends) as follows:
Enter on line 120 the taxable amount of all dividends from taxable Canadian corporations, as follows:
If you did not receive an information slip, you must calculate the taxable amount of other than eligible dividends by multiplying the actual amount of dividends (other than eligible) you received by 125%. Report the result on line 180. You must also calculate the taxable amount of eligible dividends by multiplying the actual amount of eligible dividends you received by 138%. Report the combined total of eligible and other than eligible dividends on line 120.
Report on line 121 any foreign dividends you received.
In Part I, enter the taxable amount of your dividends from taxable Canadian corporations, including the amounts shown in:
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