Income Tax return question

[maritrunks]

Here's a question I have for tax/accounting experts:

I have an 2 savings accounts that have interest earned during 2008 and 1 RRSP account with interest earned, but its less than $50.

Now I know I don't have to include my RRSP interest on my tax return since its less than $50, but do I have to include interest earned from my savings account on my tax return?

[Archanfel]

Here's a question I have for tax/accounting experts:

I have an 2 savings accounts that have interest earned during 2008 and 1 RRSP account with interest earned, but its less than $50.

Now I know I don't have to include my RRSP interest on my tax return since its less than $50, but do I have to include interest earned from my savings account on my tax return?

Yes and it has nothing to do with $50. You have to report every single cent you earned outside RRSP and TFSA.

[bubble.tea]

So even if you haven't received your T5 or whatever they are forms, you have to include them. Give your bank a swift kick in the BUTT if you haven't received them yet.

[tjthemanto]

Here's a question I have for tax/accounting experts:

I have an 2 savings accounts that have interest earned during 2008 and 1 RRSP account with interest earned, but its less than $50.

Now I know I don't have to include my RRSP interest on my tax return since its less than $50, but do I have to include interest earned from my savings account on my tax return?

Yes you do .

You should have got a T5 slip ( showing the interest earned if it was more than $ 50 ) ,from both theses saving's accounts by now or you will get these T5 slips soon .

If the interest earned is less than $ 50 the financial institution will not issue a T5 slip but you still have to report it . ( Unless its a RRSP or TFSA savings's account then you don't have to show it regardless of whether its above $ 50 or below ).

[maritrunks]

Yes you do .

You should have got a T5 slip ( showing the interest earned if it was more than $ 50 ) ,from both theses saving's accounts by now or you will get these T5 slips soon .

If the interest earned is less than $ 50 the financial institution will not issue a T5 slip but you still have to report it . ( Unless its a RRSP or TFSA savings's account then you don't have to show it regardless of whether its above $ 50 or below ).

Thanks for the info

I also made a few cents in my RRSP account (I didn't contribute much, only created so that I can move my group savings from my old job to this account) Do I have to do anything with that?

[br0pbr0p]

Thanks for the info

I also made a few cents in my RRSP account (I didn't contribute much, only created so that I can move my group savings from my old job to this account) Do I have to do anything with that?

No, all RRSP income are deferred until you withdraw.

[questrader]

Just curious... What happens if you don't report the $3-$5 total interest earned in a regular savings account over the course of an entire year?

[tjthemanto]

Thanks for the info

I also made a few cents in my RRSP account (I didn't contribute much, only created so that I can move my group savings from my old job to this account) Do I have to do anything with that?

You don't have to do anything .

If you withdrew money from your RRSP then its a whole different thing . You will have to report the money you withdrew as Income ( But that's not the case with you ).

[tjthemanto]

Just curious... What happens if you don't report the $3-$5 total interest earned in a regular savings account over the course of an entire year?


Not much will happen as I don't think they will bother you for a $ 3 or $ 5 interest over an entire yr. You just have to report it on Line 121 of your return & fill Schedule 4 from your form guide ...( Fill : II - Interest and other investment income )

http://www.cra-arc.gc.ca/E/pbg/tf/5000-s4-5/README.html ( Schedule 4 )

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/121/bnk-eng.html ( Line 121 )

But if you report it you will hardly pay any income tax on it ( just a few cents depending on your income tax bracket ). If your total income is below the personal exemption limit then you will pay nothing on it.

[Archanfel]

Just curious... What happens if you don't report the $3-$5 total interest earned in a regular savings account over the course of an entire year?

You would be breaking the law.

[Wonderdollar]

Here's a question I have for tax/accounting experts:

I have an 2 savings accounts that have interest earned during 2008 and 1 RRSP account with interest earned, but its less than $50.

Now I know I don't have to include my RRSP interest on my tax return since its less than $50, but do I have to include interest earned from my savings account on my tax return?

You DO NOT have to report any interest amount earned on your RRSP or TFSA account. However, when you withdraw money from your RRSP then the total amount would have to be reported as your income.

As far as your ordinary savings accounts are concerned, you have to report whatever interest you earned as your income whether you receive any T5 receipt or not.