From a tax perspective, other income refers to taxable income that doesn’t have a specific place on your tax return to be reported. This can include income you received from:
- Scholarships, fellowships, grants, etc.
- Contributions to your wage-loss replacement plan
- Lump-sum payments and
- Retiring allowances
This list is not complete. Click here for a full list of other income sources.
Note: If you had self-employment income during the year, enter it on a T2125 form (or a T2125/TP-80 if you’re a resident of Québec) instead. If you had any related business expenses, you’ll be able to claim those on the T2125 form.
- Isn’t reported on an information slip (such as a T4, T4A, or RL-1) or
- Hasn’t been entered on the T936: Calculation of Cumulative Net Income Loss (CNIL) or on the Other scholarships, grants, or bursaries page
If you received payments from a wage-loss replacement plan in 2018 to which you paid premiums during the year, you might be able to claim your contributions as a deduction (provided you haven’t claimed these before) on this page. A wage-loss replacement plan is an arrangement between an employer and employees that indemnifies employees against loss of employment income due to sickness, accident, etc. The income you receive from a wage-loss replacement plan must be reported on your tax return for the year in which the payment was received.
To claim a deduction for the contributions you made to a wage-loss replacement plan, you’ll need to subtract your total wage-loss replacement contributions amount from the amount shown in box 14 of your T4 slip from your employer. Enter this result in box 14 of the T4 page in H&R Block's tax software.
If you’re a resident of Québec, you can deduct contributions you made to a wage-loss replacement plan after 1967, as long as you haven’t claimed these amounts on a previous year’s return. You’ll need to follow the instructions above to subtract your total wage-loss replacement contributions from box 14 of your T4 slip. You’ll also need to subtract your contributions from box O of your RL-1 slip, but only if the code is “RN”.
Note: You can find your total contributions on your final pay stub for the year or on supporting documents from the insurance company.
In 2018, George received $2,500 in wage-loss compensation due to an accident that occurred at work. His contributions to the plan totaled $750 and he earned $45,000 in employment income for the year working for his employer. Since George received wage-loss replacement payments, he’ll need to subtract his total contributions to the plan ($750) from the amount shown in box 14 of his paper T4 slip ($45,000) and enter this amount in box 14 of the T4 page in H&R Block’s tax software.
You might find your income replacement indemnities amount or the compensation you received for the loss of financial support under a law of Canada or from a province other than Québec, on your T5007 slip. If you’re a resident of Québec, these amounts can be found on your RL-5 slip. You might have received income replacement indemnities or compensation for the loss of financial support because:
- of an accident at work
- of a precautionary cessation of work
- of a traffic accident
- of an act of good citizenship
- you were the victim of a crime
Important: If you received payments from a wage-loss replacement plan in 2018, you’ll need to subtract your total contributions to the plan from the amount entered in box 14 (employment income) on the T4: Statement of remuneration paid page. If you’re a resident of Québec, subtract your contributions from box O of your RL-1 slip. You can find the T4 and the RL-1 page under the QUICK SLIP icon on the QUICK ENTRY tab.
Employment-related income for which you didn't receive an information slip (such as a T4 or RL-1 slip) can include:
- Tips and gratuities
- Occasional earnings
- Net research grants – this is money given to cover certain expenses you’ve paid to carry out research projects.
- Royalties – this is compensation you might have received for using or allowing the use of a copyright, patent, trademark, formula, or a secret process that you invented. Report your royalties on this page for which you don’t have any associated expenses.
Note: Remember, you’re responsible for keeping track of and reporting all income you’ve earned during the year, even if it wasn’t reported on an information slip. Reporting your employment income allows you to claim certain deductions and credits, including the Canada employment amount . You might also be able to contribute to the Canada Pension Plan (CPP) or Québec Pension Plan (QPP) for the tips, gratuities, or occasional earnings you received during the year.
Where do I claim this?
Follow these steps in H&R Block’s 2018 tax software:
- On the PREPARE tab, click the OTHER icon. You'll find yourself here:
- Under the OTHER TYPES OF INCOME heading, select the checkbox labelled Other income you earned or received in 2018 and click Continue.
- When you arrive at the Other income page, enter your information into the tax software.
Note: You can also find this page under the EMPLOYMENT icon of the PREPARE tab.