CCH iFirm Tax Forms 2021.20.31

T5 - RL-3 Data Entry Screen

In order to complete the T5 and RL-3 slips (investment income), you must access the T5/RL-3 Data-entry screen. The data is entered in the federal column and will be posted to the Québec column if the province of residence is "QC." If the province of residence is not Québec, but you want an RL-3 slip produced, enter a check in the "Complete RL-3 slip" box.

Dividends

For dividends, the program calculates the gross-ups as well as the tax credits at the federal level and in Québec, if applicable. Under paragraph 82(1)b) of the Income Tax Act, a taxpayer who is an individual, other than a trust that is a registered charity, must include the following sums when calculating income:

Dividends other than eligible dividends paid before 2014:

25% of the actual amount of dividends

Dividends other than eligible dividends paid after 2013 and before 2016:

18% of the actual amount of dividends

Dividends other than eligible dividends for the 2016 taxation year:

17% of the actual amount of dividends

Eligible dividends for the 2009 taxation year:

45% of the actual amount of eligible dividends

Eligible dividends for the 2010 taxation year:

44% of the actual amount of eligible dividends

Eligible dividends for the 2011 taxation year:

41% of the actual amount of eligible dividends

Eligible dividends for taxation years after 2011:

38% of the actual amount of eligible dividends

Therefore, if you select a beneficiary type 1, 2 or 4 (with calculation) in box 23, the program will calculate the gross-ups and the tax credits for dividends (boxes 25, 26, 11 and 12). Note that there are two codes 4 in the application. If the taxpayer is a trust other than a registered charity, select code 4 with calculation in order for the gross-ups and the tax credits for dividends to be calculated automatically.

Notes

At the bottom of the T5 Summary, you can enter a note that will be posted to each slip.

 

In order to view the slips prepared prior to printing, access the T5 – Statement of investment income or RL-3 – Investment income slips. If it is necessary to modify data, return to the data-entry screen.

See Also

RL-3 Slip - Investment Income

RL-3 SUM – Summary of RL-3 slips

T5 - Statement of Investment Income

T5 Summary

T4015 - T5 Guide - Return of Investment Income