Whether you’re a first-time or recurring taxpayer, you may find it challenging to understand the meaning of some tax return provisions.
One tax provision that tends to cause confusion is Line 15000. What does it mean? How do you fill it?
Keep reading to learn about what line 15000 means on your tax form.
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What is Line 15000 on Tax Return?
Line 15000 refers to a specific line on your tax return form where you enter the total income you earned from all sources during the tax year.
Line 15000 includes everything from your salary and wages to any investment income or tips you may have received.
Your total income is used to determine how much tax you owe. The higher your income, the more tax you’ll have to pay.
But don’t panic! There are credits and deductions you may be eligible for that can reduce the amount of tax you owe.
Reporting your income on Line 15000 is crucial for avoiding any potential issues with the CRA. Keep reading to learn about what the line constitutes.
What Constitutes the Total Income?
Your total (gross) income consists of all of your income before taxes. This includes wages, salaries, tips, commissions, and any other forms of income you may have received during the tax year.
The following are other incomes that fall under your overall gross annual income:
- Paychecks from a job
- Employment commissions
- Bonuses, tips, and other monetary incentives
- Profits from retirement accounts
- Earnings from independent work
- Partnership profits
- Rents received
- Gains on investments
- Universal Child Care Benefit
- Compensation for work-related injuries
- Federal supplemental funds
- Payments for social services
- Job security insurance
- Contributions to a Registered Retirement Savings Plan (RRSP)
You are expected to report all this income in line 15000 on your tax form.
Non-Taxable in Line 15000 Tax Return
Not every income is taxable in Canada. The following incomes are non-taxable but you still need to report them when filing line 15000:
- Compensation for victims of traffic accidents and violent crimes from the government
- Financial aid for K-12 education, including scholarships and bursaries
- Death or disability benefits, majority of gifts and inheritances
- Awards for post-secondary studies such as bursaries, scholarships, and fellowships
- GST/HST and the Canada Child Benefit credits
- Gains from workers’ compensation
- Eligible lottery winnings
- Strike pay
- Earnings from TFSA
How to Calculate Line 15000 on Your Tax Return
To calculate line 15000 on your tax return, you need to identify all your income sources. The following is a list of the income sources that can be added to calculate your line 15000 tax return:
- Line 10100: Employment income from your T4 slips
- Line 10400: Tips, gratuities, and other casual income not reported on your T4
- Line 11300: Old Age Security (OAS), Guaranteed Income Supplement (GIS), and Allowance from T4A(OAS) slips and it comprises your total income.
- Line 11400: Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits from T4A(P) slips
- Line 11500: Income from your pensions or superannuation reported on T4A slips
- Line 11600: Eligible pension income from splitting a spouse or common-law partner’s pension
- Line 11900: Your Employment Insurance (EI) benefits are reported on T4E slips
- Line 12000: Includes your Dividend income from Canadian corporations reported on T5 slips
- Line 12100: Interest and other investment income, including your T3 slips
- Line 12200: Net partnership income reported on T5013 slips for limited and non-active partners
- Line 12500: Income from Registered Disability Savings Plans (RDSPs) reported on T4A slips
- Line 12600: Income from your rental properties
- Line 12700: Capital gains from the sale of investments or property, including T5008 slips (Statements of Securities Transactions slip)
- Line 12800: Taxable child and spousal support payments
- Line 12900: Income from Registered Retirement Savings Plans (RRSPs) reported on T4RSP slips
- Line 13000: Other income not reported elsewhere on the tax return
- Line 13010: Taxable portion of scholarships, prizes, and awards
- Lines 13500 to 14300: Self-employment income, including business, professional, commission, farming, and fishing income
- Line 14400: Worker’s Compensation benefits
- Line 14500: Social assistance
- Line 14600: Net federal supplements
- Line 14700: The total amounts of 14400-14600 should be calculated and entered here.
Not everyone is expected to calculate all the above lines. However, the following are the major lines you need to calculate:
- Line 10100 – As your regular employment income
- Line 10400 – Your additional income asides from the main income
- Line 14300 – Your self-employment income and
- Line 14700 – Compensations, net federal supplement and social assistance (14400, 14500 and 14600 respectively)
Who is Required to File a Line 15000 Tax Return in Canada?
All Canadians who have received income in a tax year are required to file line 15000 on their tax returns, regardless of the amount of income earned.
However, there are certain situations in which an individual may not be required to file a tax return.
For example, if an individual’s only source of income is from employment and the amount of tax withheld from their pay is sufficient to cover their tax liability, they may not need to file a tax return.
That said, those that required to file a line 15000 tax on their returns include:
- Individuals who registered for the Canada Pension Plan (CPP)
- Individuals who received allowances (such as grants and scholarships)
- Individuals who benefited from social assistance programs
- Individuals who received federal supplements
- Individuals who received worker’s compensation and Universal Child Care benefits.
- Individuals who had income tax in the previous tax year
- Tax authorities charged with filing tax returns
- Individuals who disposed of or sold properties
- Individuals who did not repay their RRSP withdrawals
- Individuals who are required to pay part of their Old Age Security or Employment Insurance benefits
- Individuals who split their pension income with their spouse or common-law partner
- Individuals who have capital gains reserves or taxable capital gain
When Should You File Your Line 15000 Tax Return?
The deadline for filing a tax return in Canada is April 30th of the year following the tax year.
For example, if you received income in 2022, the deadline for filing your tax return would be April 30, 2023.
However, if you or your spouse or common-law partner are self-employed, the deadline for filing your tax return is June 15th of the year following the tax year, but any balance owing is still due on April 30th.
For example, if you were self-employed in 2022, the deadline for filing your tax return would be June 15, 2023, but any balance owing would still be due on April 30, 2023.
Note: These deadlines may be different for each province and territory as the provinces have the authority to set their own tax filing deadlines.
If you are unable to meet the filing deadline, you can request an extension by filing a request for a tax return extension through your CRA My Account service or by contacting the CRA.
What are the Implications of Late Payment or Not Filing the Line 15000 Tax Return?
If you are required to file a tax return and you didn’t do so, you may face consequences from the Canada Revenue Agency (CRA). These include:
- The Canada Revenue Agency (CRA) may charge penalties and interest on any unpaid taxes and may also take collection actions such as garnishing your wages or seizing your bank accounts and other assets.
- The CRA may also report any missed payments to credit bureaus, which could impact your credit score negatively.
- If you are entitled to receive a refund, you will not receive it until you file a tax return.
- You may miss out on government credits and benefits, such as GST/HST credit, Canada Workers Benefits, Canada Child Benefits etc.
Voluntary Disclosures Program (VDP)
If you didn’t file your annual tax or did so wrongly, you can avoid the penalties under the Voluntary Disclosures Program (VDP).
VDP is a program run by the CRA that allows taxpayers to come forward and disclose any previously unreported or incorrectly reported tax information without facing penalties.
If there are inconsistencies or outstandings in your taxes, you need to be proactive enough to come forward under the VDP initiative before the CRA contacts you.
However, you must still pay the full amount of tax owed including interest (as specified above). Sometimes, The CRA can offer relief, grants, and a reduction in the interest owed.
The purpose of the VDP is to help the CRA recover unpaid tax without having to pursue legal action against the taxpayer.
Even if you have non-taxable income, you are still required to report any interest or income from certain sources on your tax return using Line 15000.
It’s important to submit your tax returns on time, as failing to do so could result in serious consequences.
If you have made mistakes or left out information on previous tax returns, the Voluntary Disclosures Program (VDP) may be able to help. You just need to be proactive enough to come forward first.
And if you are struggling to pay your tax debt, it’s essential to seek the advice of a financial expert to get personalized advice for your specific situation.