What Is Line 10100 on a Canadian Tax Return?
Demystify Line 10100 of the Canadian T1 tax return. Gain clarity on reporting your earned income accurately and understanding its scope.
The Canadian tax system requires individuals to report various income types to the Canada Revenue Agency (CRA) through the T1 General Income Tax and Benefit Return. Understanding the specific lines on this form is important for accurate tax filing. This includes Line 10100, which captures a significant portion of an individual’s earnings.
What Line 10100 Represents
Line 10100 on the Canadian T1 tax return is designated for “Employment Income.” This line reflects the gross income an individual earns from their employment before any deductions are applied.
This amount typically corresponds to the figure found in Box 14 of a T4 Statement of Remuneration Paid slip. A T4 slip is a tax document issued by employers that summarizes annual earnings and deductions.
Income Inclusions on Line 10100
Line 10100 encompasses various types of income received as part of an employment relationship. The most common forms include salaries and wages, including regular pay, overtime, and bonuses. Commissions earned by an employee are also reported on this line.
Tips and gratuities received in the course of employment, even if not explicitly listed on a T4 slip, must be reported as part of employment income on Line 10100. Certain employer-provided benefits are considered taxable and are included in employment income. These “taxable benefits” can include items like the personal use of a company car, subsidized accommodations, or group term life insurance premiums.
Employers are required to report the value of these taxable benefits in Box 14 of the T4 slip. Other less common, but still included, items are wage loss replacement benefits from employer plans and certain lump-sum payments.
Income Exclusions from Line 10100
Not all income is categorized as “employment income” for Line 10100, and various other income sources are reported on different lines of the T1 General form. For example, income derived from a business or professional activity, known as self-employment income, is reported separately on lines such as 13500 to 14300.
Income from pensions and annuities, including Canada Pension Plan (CPP) benefits, Old Age Security (OAS) benefits, or withdrawals from Registered Retirement Savings Plans (RRSPs), are reported on other specific lines like 11300, 11500, or 12900. Investment income, such as interest, dividends, and capital gains, is also excluded from Line 10100. These types of income are typically reported on lines like 12000, 12100, or 12700.
Certain government benefits, including Employment Insurance (EI) benefits or social assistance payments, are reported on their respective lines, such as Line 11900 for EI. While some “other employment income” that is not captured on a T4 slip might be reported on Line 10400, it is distinct from the primary employment income reported on Line 10100.
Reporting Your Employment Income
To accurately report employment income on Line 10100, gather all T4 Statement of Remuneration Paid slips received from employers for the tax year. The primary source of the amount to be entered on Line 10100 is Box 14 of each T4 slip, which shows the gross employment income before deductions. If you received T4 slips from multiple employers, you must add the amounts from Box 14 of all T4 slips together to arrive at a single total for Line 10100.
Once this total is calculated, enter it on Line 10100 of your T1 General Income Tax and Benefit Return. If using tax preparation software, the program typically prompts you to input your T4 information, and it will automatically populate Line 10100. For those filing a paper return, write the calculated total in the designated box for Line 10100, which is usually found on page three of the T1 General form under “Step 2 – Total Income”. After entering the amount, double-check it against your T4 slips to ensure accuracy before submitting your tax return.