Status Indian - Interest and investment income

If you are a Status Indian and are exempt from paying taxes, you must indicate this in the program. This will allow the program to exempt from tax the income that you earned on a reserve.

1. On the "Left-side menu on the Interview tab", select "Interview setup".

2. On the screen to your right, check the box for "Tax return for a Status Indian" and click "Next" at the bottom of the page.

3. Return to the "Left-side menu on the Interview tab" and select "Status Indian".

4. On the page that appears on the right entitled "Status Indian exemptions", to the question "Please confirm that you are a Status Indian with rights to exempt income", you must answer "Yes" because you are a Status Indian.

For interest and investment income, follow these steps:

1. You have received a T5 slip and, for Quebec residents, an RL-3 slip with an amount in Box 13 of the T5.

2. If you have received a single T5 slip and the interest income has been deposited with a financial institution located on the reserve and you have no other taxable income, return to the "Interview Setup" and check the box "No Income in 2021".

3. However, if you received another T5 slip from and an institution outside the reserve, enter the amount from Box 13.

4. Return to the "Status Indian exemptions" page and in the "Exempt income as a Status Indian" section, on the "Exempt interest income" line, enter the amount earned on a reserve.

The CRA could verify that all of the following conditions have been met.

1. You earned interest income from a savings account, term d eposit or Guaranteed Investment Certificate (GIC).

2. You opened the savings account, or obtained the term deposit or GIC, at a financial institution located on a reserve.

3. The financial institution is required to pay you interest income at a location of the financial institution on a reserve.

4. If your investment is a term deposit or GIC, the interest rate is fixed or may be calculated at the time of the acquisition.

We suggest you visit the CRA's website to find more information on Status Indians, by clicking on the following link:

https://www.canada.ca/en/revenue-agency/services/aboriginal-peoples/indians.html

For residents of Quebec, consult the following link:

https://www.revenuquebec.ca/en/citizens/your-situation/indians/income-tax/