If you had investment income and expenses, much of the information required on Schedule 4 will be automatically calculated for you on your federal tax return, as you enter in the following tax slips:
- T5: Statement of investment income
- T5013: Statement of partnership income
- T4PS: Statement of employees profit sharing plan allocations and payments
- T3: Statement of trust income allocations and designations
- Relevé 3: Revenus de placement
- Relevé 15: Amounts allocated to the members of a partnership
- Relevé 16: Revenus de fiducie
- Relevé 25: Income from a profit-sharing plan
If you didn’t receive these slips but you earned investment income during the year, or if you have to complete additional sections of the form, you’ll need to manually complete Schedule 4.
Note: If you’re a resident of Québec, you’ll also need to complete Schedule N to report your investment expenses.
Completing Schedule 4
Schedule 4 has three separate sections:
- Taxable amounts of dividends (eligible and other than eligible) from taxable Canadian corporations
- Interest and other investment income
- Carrying charges and interest expenses
You’ll need to complete your Schedule 4 if you have any of these sources of interest or investment income:
- Interest from bank accounts, term deposits, guaranteed investment certificates, or Canada savings bonds
- Treasury bills
- Earnings on a life insurance policy
- Foreign interest
- Interest earned on a mortgage (this is a mortgage you’ve given to someone for investment purposes)
- A statement of interest on your notice of assessment from the Canada Revenue Agency (CRA)
Note: If you received income during the year that doesn’t fit into any of the categories listed above (for example, if you received interest on money you loaned to a business), you can enter that income on the Other income earned or received in 2018 page under the OTHER icon on the PREPARE tab.
You’ll also need to complete your Schedule 4 (as well as your Schedule N as a resident of Québec) if you have any of these carrying charges and interest expenses to report:
- You paid someone to give you investment advice or manage your portfolio, like having your investment income recorded for you
- You paid interest on money you borrowed to invest/earn investment income (excluding RRSPs or a TFSA)
- You paid interest on a policy loan made to earn income
- You paid legal fees related to receiving support payments
- You paid someone to complete your return you have income from a business or property
Note: Don’t enter any safety box charges, subscription fees for financial newspapers or magazines, or legal fees you paid to get a separation or divorce on this page. Visit the Canada Revenue Agency (CRA) site for more information on what investment expenses can be claimed.
Where do I claim this?
Follow these steps in H&R Block's 2017 tax software:
- Under the PREPARE tab, click IN THIS SECTION icon.
- Click the Add This button under the option indicating that you had investments.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the INVESTMENT INCOME section, select the checkbox labelled Statement of investment income (Schedule 4).
- When you arrive at the page for your Statement of investment income, enter your information into the tax software.