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

Canadian source dividends are profits you receive from your share of the ownership in a corporation.

There are two types of dividends you may have received from taxable Canadian corporations: eligible dividends and other than eligible dividends.

If you require additional information on the type of dividends you received, contact the payer of your dividends.

Dividends are usually shown on the following slips:

• T5, Statement of Investment Income
• T4PS, Statment of Employees Profit Sharing Plan Allocations and Payments
• T3, Statement of Trust Income Allocations and Designations
• T5013, Statment of Partnership Income
• T5013A, Statment of Partnership Income for Tax Shelters and Renounced Resource Expenses

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).

Tax Tip
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 money) that one family member loaned or transferred to another family member. See Loans and transfers of property and interpretation bulletins IT-510 and IT-511.

If a child who was born in 1994 or later is reporting dividends, see Split income of a child under 18. 

Completing your tax return

Enter on line 180 the taxable amount of dividends (other than eligible dividends) as follows:

• box 11 on T5 slips
• box 25 on T4PS slips
• box 32 on T3 slips
• box 51-1 on your T5013 or T5013A slips.

Enter on line 120 the taxable amount of all dividends from taxable Canadian corporations, as follows:

• boxes 11 and 25 on T5 slips
• boxes 25 and 31 on T4PS slips
• boxes 32 and 50 on T3 slips
• boxes 51-1 and 52-1 on your T5013 or T5013A slips.

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% and reporting 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 141%. Report the combined total of eligible and other than eligible dividends on line 120.

Completing your Schedule 4 (only if you received a General Income Tax and Benefit Package)

In Part I, enter the taxable amount of your dividends from taxable Canadian corporations, including the amounts shown in:

• boxes 11 and 25 on your T5 slips
• boxes 25 and 31 on your T4PS slips
• boxes 32 and 50 on your T3 slips
• boxes 51-1 and 52-1 on your T5013 and T5013A slips

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• Schedule 4, Statement of Investment Income
• IT-510, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor
• IT-511R, Interspousal and Certain Other Transfers and Loans of Property

Related topics

• Line 121 - Interest and other related income
• Line 303 - Spouse or common-law partner amount
• Line 425 - Federal dividend tax credit
• Provincial or territorial dividend tax credit

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