T4, T5, T5013 Explained: Common Slips Canadians Receive at Tax Time

Every tax season, Canadians receive various tax slips from employers, financial institutions, and partnerships detailing their income for the year. Among the most common are the T4, T5, and T5013 slips. Understanding what each slip represents, the types of income reported, and how to use them for filing your tax return is essential to ensure compliance with the Canada Revenue Agency (CRA) and avoid costly mistakes. This comprehensive guide explains these slips in detail.

1. The T4 Slip: Statement of Remuneration Paid

The T4 slip is issued by employers and reports employment income and deductions for the year. It is one of the most familiar tax slips for salaried and hourly employees.

1.1 What Is Reported on the T4?

• Total salary, wages, bonuses, and commissions
• Taxable benefits such as personal use of a company vehicle or housing allowances
• Deductions for income tax withheld, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums
• Other amounts like pension adjustments or union dues

1.2 How to Use the T4

Report the employment income and deductions from the T4 slip on your personal tax return (T1). Amounts withheld for tax and contributions are credited against your tax payable.

2. The T5 Slip: Statement of Investment Income

The T5 slip is issued by financial institutions and others to report investment income earned during the year.

2.1 Types of Income on a T5 Slip

• Interest from bank accounts, bonds, and other sources
• Dividends from Canadian corporations (eligible and non-eligible)
• Other investment income such as royalties or certain foreign income

2.2 Reporting T5 Income

Investment income reported on T5 slips must be included in your tax return. Dividends qualify for dividend tax credits, which reduce your federal and provincial tax payable.

3. The T5013 Slip: Statement of Partnership Income

The T5013 slip is issued by partnerships to report a partner’s share of income, losses, and deductions.

3.1 What the T5013 Reports

• Your share of the partnership’s business income or loss
• Other income types such as rental or interest income from partnership activities
• Capital gains or losses allocated to you

3.2 Using the T5013

Partners report their share of income or loss from the partnership on their personal tax return using Form T2125 (if active business income) or Schedule 3 (for capital gains). Accurate reporting is essential to avoid discrepancies with CRA records.

4. Why These Slips Matter

• They provide official documentation of income earned from various sources.
• They ensure income is reported consistently between taxpayers and the CRA.
• They help you claim appropriate deductions and tax credits.

5. What to Do If You Don’t Receive a Slip

If you earned income but did not receive the corresponding slip, contact the issuer. You are still required to report the income on your tax return, even if the slip is missing.

6. Tips for Managing Your Tax Slips

• Keep all slips organized and in a safe place.
• Cross-check amounts with your own records and statements.
• Use certified tax software to import and enter slip information accurately.
• Consult a tax professional if you have multiple slips or complex income sources.