How to Prepare a T5 for Dividends

An individual files a T5 form for dividends acquired through Canadian organizations.

Canadian residents must report certain dividends depending upon their type and how they are classified since some dividends must be reported as interest payments and some interest must be reported as dividends. An individual may receive dividend payments if acting as a trustee for a Canadian beneficiary who keeps ownership and control of property. Any nonresident making certain payments to a Canadian resident or if the person is acting as an agent of a Canadian resident must file taxes on a T5 form, Return of Investment Income.

Filing Other Dividends Besides Eligible Dividends

Step 1

Record the actual amount of dividends other than eligible dividends in Box 10 of the T5 form. These are dividends from taxable Canadian corporations. Do not include dividends paid to individuals who are not eligible to receive the federal dividend tax credit, capital gains dividends, dividends paid from a credit union to a member who has shares in a credit union if the share is not registered on a designated stock exchange, or taxable dividends and dividends (excluding capital gains dividends) that were paid by a mortgage investment corporation to any of the corporation's shareholders as stated by the Canada Revenue Agency.

Step 2

Write the taxable amount of dividends that were not eligible dividends in Box 11. Enter the taxable amount that is more than 25 percent than the dividends reported in Box 10. This is only for those individuals acting as a trustee and with the beneficiary owner retaining ownership and control of the property. Only individual residents within Canada that do not include a trust for a registered charity should specify an amount in this box. Any benefits paid to a corporation in Canada that were reported in Box 10 should not be included in this section.

Step 3

Enter a 13.3333 percent amount that is taxable from the dividends other than the eligible dividend amount in Box 12. Dividends in Box 10 that were paid to Canadian corporations should not be included here.

Step 4

Record payable or paid dividends by a credit union to a member who has shares in a credit union, if the share is not registered on a designated stock exchange, in Box 13. Also include any taxable dividends (other than capital gains dividends) that were paid by a mortgage investment corporation to any of the corporation's shareholders.

Step 5

File dividends from other sources in Box 14 on the T5 form titled "Other Income from Canadian Services." Record the amount of taxable dividends and eligible dividends paid to an individual from a corporation located in Canada yet is not considered a Canadian corporation.

Step 6

Record dividends from capital gains dividends in Box 18. These dividends are paid by an investment corporation, mutual fund corporation or a mortgage investment corporation.

Filing Eligible Dividends

Step 1

Fill in the amount for eligible dividends in Box 24. Only taxable dividends that were designated as eligible dividends by a corporation paying taxable dividends should be included in this box. Do not include dividends paid to individuals who are not eligible to receive the federal dividend tax credit, dividends paid from a credit union to a member who has shares in a credit union if the shares are not registered on a designated stock exchange, or taxable dividends and dividends other than eligible dividends (excluding capital gains dividends) that were paid by a mortgage investment corporation to any of the corporation's shareholders as stated by the Canada Revenue Agency.

Step 2

Record the taxable amount of eligible dividends in Box 25. The amount should be entered as 45 percent more than the actual amount from Box 24. Do not enter any amount if the dividends amount in Box 24 has been paid to a corporation.

Step 3

Enter the amount for a dividend tax credit for eligible dividends in Box 26. The amount needs to be 18.9655 percent of the taxable amount entered in Box 25. Do not enter any amount if the actual amount of dividends in Box 24 was paid to a corporation.

Tip

If you have any questions, comments or concerns regarding the T5 form, contact the Canada Revenue Agency through its website or by phone (800) 959-5525.

Warning

You must provide a Social Insurance Number (SIN) when filing the T5 form. If you don't have one, contact the Human Resources and Skills Development Canada website.

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