For instance, one of the most important sections of your tax return to fill in correctly is Line 10100 (formerly 101), which has to do with your employment income. Keep reading to find out what Line 10100 is and why it’s an essential part of your tax return.
What Are Tax Lines?
Tax lines are a filing system that the government and the Canada Revenue Agency (CRA) use to simplify tax reporting forms. Each line on one of these forms represents a different aspect of your tax return. While tax lines used to be 3 or 4 numbers long, the CRA announced that all lines would increase to 5 numbers as of tax season 2019.
What Is Line 10100 On Your Tax Return?
Until 2019, Line 10100 was known as Line 101. As mentioned, it’s one of the only lines that pretty much every Canadian taxpayer has to complete on their return because it’s how people declare their employment income to the Canada Revenue Agency.
If you work for one or more conventional businesses, Line 10100 appears as “Box 14” on any T4 tax slips you receive from your employer(s). The total amount of T4 slips you get for that tax year makes up Line 10100 on your federal tax return, which means income earned through multiple employers should be declared individually.
Where Can You Find Line 10100 On Your Tax Return?
If you look at a completed federal tax return from the year 2019 or later, Line 10100 should be the first line located under “Step 2 – Total Income”, which is normally on Page 3 of your T1 – Income Tax and Benefit Return (also called a T1 General Form).
You can generally find the form online through tax filing software or by downloading it through your CRA MyAccount. Depending on the tax software you use, the line may appear under different sections. For example, with TurboTax, you can find Line 10100 in the tax summary section.
Filing Your Tax Return
Don’t forget, the amount you have to enter for Line 10100 of your federal tax return is listed under Box 14 of your T4 slip. Whether you’re using tax software, hiring a tax accountant or filing your taxes manually, you must report the total income you’ve earned as stated on each T4 slip you get. Employment income qualifies as any earnings from:
- Tips (only those that would appear on a T4)
Important Tax Return Lines You Should Know
Over the past few years, the CRA has gradually changed most tax lines in Canada from 3 or 4 numbers to 5-digit codes as a way to make tax reporting more efficient. Here are some of the most important tax lines you should know:
|Year 2018 and Before||Year 2019 and After||Description|
|101||10100||Employment income from T4 tax slips|
|104||10400||Other employment income (royalties, foreign income, etc.)|
|113||11300||Old Age Security (OAS) pension|
|114||11400||Canada Pension Plan (CPP) OR Quebec Pension Plan (QPP) benefits|
|119||11900||Employment Insurance (EI) and other related benefits|
|126||12600||Net rental income, minus deductions (losses)|
|127||12700||Taxable capital gains (or net capital losses)|
|129||12900||Registered Retirement Savings Plan (RRSP) income|
|144||14400||Workers’ compensation benefits|
|145||14500||Social assistance payments|
|300||30000||Basic personal amount|
|350||35000||Total federal non-refundable tax credits|
|437||43700||Total income tax deducted|
Tax Line 10100 vs. Tax Line 10400 vs. Tax Line 15000
It’s no secret that filing your own taxes can get a tad confusing, particularly when you’re dealing with your federal and provincial/territorial taxes at the same time. For example, there are 3 tax lines in particular that can be easily mixed up if you’re not careful:
This line refers solely to employment income, meaning anything that appears on a T4 tax slip in box 14.
Where line 10100 refers only to your employment found on box 14 of your T4, line 10400 refers to your less-traditional income to report, such as royalties, health benefits and payments from other countries. These incomes must be declared on Line 10400 of your federal tax return and cannot be accommodated on a T4 slip.
This is another line that you’ll see on a federal tax return. Unlike line 10100, line 15000 includes all income, including income from employment, investments, interest, taxable gains, RRSPs and any other sources.
Income Sources Reported On Line 10400
Here are some of the main income types that you should not declare on Line 10100 of your federal or provincial/territorial taxes. Those incomes actually belong on Line 10400 (Other Employment Income), which is exclusively on your federal tax return:
- Non-Canadian Employment Income – Any income that you earn annually from foreign employers (all currencies must be reported in Canadian Dollars/CAD).
- Royalties – Business or trade income you make when companies use a licensed property or asset that you own for profit (common with artists, musicians, etc.).
- Clergy Housing Allowance – This refers to any stipends (regular payments) that clergy members get from the government to cover the cost of housing or utilities.
- Wage-Loss Replacement Plans (WLRP) – An employer-employee arrangement that offers temporary payments to workers who lose income for various reasons.
- Veteran Benefits – Financial, health, disability and death benefits for Canadian forces members (past/present) and their families are on Box 127 of a T4A slip.
- Net Research Grants – A payment plan for professionals to cover costs related to government-approved research projects (travel, assistance, equipment, etc.).
- Sales Tax Rebates – Depending on your home province or territory, you may need to report certain sales tax credits, like GST and HST as taxable income.
Workplace Payment Plans & Insurance Programs Reported On Line 10400
Additionally, some types of workplace payment plans and insurance programs must be reported on Line 10400 of your federal tax return, including but not limited to:
- Medical Premium Benefits – If you pay a premium to be part of an employee health plan, you can claim your payments as medical expenses on your taxes.
- Employee Profit-Sharing Plan (EPSP) – You should also report profits, losses and contributions you make through company investment plans (trust accounts).
- Wage Earner Protection Program (WEPP) – If a company goes bankrupt or is the subject of a receivership, the WEPP offers workers payment of eligible wages.
- Supplementary Unemployment Benefit Plan (SUBP) – This raises a worker’s Employment Insurance (EI) payments during a temporary or indefinite layoff.
- Premiums of Group Term Life Insurance Plan – This policy pays out after the death or disability of current/former workers but is only taxable to the employer.
Tax Line 10100 - FAQs
Is Line 101 the Same as Line 150 On a Tax Return?
Is Line 10100 the Same as Line 15000?
Why is Line 10100 Important?
Get Ready For Tax Season
Whether you’re doing your own taxes or getting them done professionally, Line 10100 is definitely one of the most essential parts of your federal and provincial/territorial tax returns. Get in touch with a certified tax expert if you’re having trouble understanding or filing your taxes. That way, you’ll be totally prepared for tax season.