In Canada, your net income is the amount you earn after accounting for taxes and other related deductions. Normally, Canadians consider net income the amount of their pay cheque, as opposed to their annual salary. Often, this is from employment income sources, such as a salaried or hourly wage job.

Fund company distributions can be made monthly, quarterly or annually (or not at all) and you will receive a T3 slip or T5 slip each year for your personal tax return preparation. A T3 slip is issued for mutual fund trusts (which most are) and a T5 slip is issued for corporate class mutual funds.

In order to claim certain federal and provincial/territorial tax credits, you need to report your dependant's net income on your return (even if that amount is 0). You can find this amount on line 23600 of your dependant's federal tax return, or on line 275 if you're filing a Québec tax return.

Refer to Line 12100 – Interest and other investment income.

Lines 12000 and 12010 – Taxable amount of dividends from taxable Canadian corporations.

We use this amount for certain calculations such as the Canada Child Tax Benefit, the GST/HST credit, and certain tax credits. If it applies, enter your spouse's or common-law partner's net income in the “Information about your spouse or common-law partner” area on page 1 of your return.

Box 22 – Income tax deducted. Report the total income tax you deducted from your employee's income. This includes the federal, provincial (except Quebec), and territorial taxes that apply.

Line 23600 is your total calculated net income. This line is not shown on your T4 but it includes your Employment income from box 14 seen on line 10100 in your Detailed Tax Summary.

Reporting Capital Gains The capital gains are claimed by completing schedule 3 for the current tax year, to report eligible capital gains from all sources. Once calculated, 50% of the total is transferred to line 12700 of your tax return as your taxable capital gain amount.