  Income |
Use the keyword IncomeSource to enter the type of income earned in the trust.
The following options are applicable for the keyword IncomeSource.
 See the CRA's general income tax guide:
Line 05 - Other investment income
Use the keyword Description.inc to enter a brief description of the source of the income.
Use the keyword Foreign-Inc to enter the type and amount of foreign income. Once data is entered using Foreign-Inc, DT Max will calculate the following deductions and credits:
- deduction pursuant to subsection 20(11)
- federal foreign tax credits (T3FFT) - one per country
- provincial foreign tax credit (T3PFT)
- Quebec foreign tax credit for foreign non business income (TP-772)
In order for the calculations to be performed properly, you must enter the type of foreign income in Foreign-Inc and the country of reference in Country.for.
The foreign tax credits determined for purposes of forms T3FFT, T3PFT and TP-772 are calculated on a country-by-country basis. You can override the federal non business foreign tax credit with the keyword Foreign-Cr-OV. This override will be carried through to the provincial foreign tax credit calculation (T3PFT or TP-772 for Quebec).
The following options are applicable for the keyword Foreign-Inc.
Interest from foreign sources
Dividends from foreign corporations
Other foreign investment income (specify)
Foreign retirement arrangement
Other foreign pension
See the CRA's general income tax guide:
Line 04 - Foreign investment income
Use the keyword Country.for to select the country of origin of the foreign income.
DT Max will group the foreign income on a country-by-country basis and will calculate the foreign tax credits and deductions for each country.
Use the keyword Tax-Paid to enter the total amount of foreign tax paid.
Form T3FFT will only be produced if foreign tax paid has been entered.
Use the keyword Tax-Treaty to enter amounts to be deducted from net income for tax purposes due to a tax treaty with Canada.
The total treaty-exempt income will be deducted from net income for tax purposes on the tax returns filed.
Use the keyword Exchange-Rate to enter the exchange rate at which income is to be converted to Canadian dollars. If you entered the amount in Canadian dollars, no entry is required here.
Click here for the CRA's records of average exchange rates.
Use the keyword For-Deduct-OV to override the automatic calculation of the deduction claimed under subsection 20(11).
This type of entry must be personalized, i.e. the 20(11) deduction is calculated on an individual basis. A separate 20(11) deduction will be calculated for each investment income, for each different country. Therefore, if an override is required, it must be entered within the group where it is to apply.
DT Max will enter this amount as other deduction from total income on line 40 of the federal return and on line 70 of the Quebec return.
The following options are applicable for the keyword For-Deduct-OV.
Deduction under subsection 20(11) (no tax limit) The option "Deduction under subsection 20(11) (no tax limit)" will override the deduction according to subsection 20(11) in column 7 on the in-house form Summary of Foreign Income. However, this option will not limit the foreign tax eligible for a foreign tax credit to 15% in column 8.
Deduction under subsection 20(11) (15% income tax limit) The option "Deduction under subsection 20(11) (15% income tax limit)" will override the deduction according to subsection 20(11), column 7 on the in-house form Summary of Foreign Income. This option will maintain the limit of the foreign tax eligible for a foreign tax credit to 15% in column 8.
See the CRA's general income tax guide:
Line 44 - Total federal tax payable
Use the keyword Annuities to enter the annuity payments received for the relevant option.
If the annuities are allocated and designated, schedule 7 will automatically be generated.
The following options are applicable for the keyword Annuities.
Use [Alt-J] to enter different values for other jurisdictions.
In the keyword Lump-sum-Pmt, choose the relevant option and enter the lump-sum payments received.
The following options are applicable for the keyword Lump-sum-Pmt.
Registered pension plan (RPP)
Lump sum - plan for services while NR
Deferred profit-sharing plan (DPSP)
Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword Dividends to enter the actual amount of dividends received. Also indicate the source.
The calculation of the gross-up amount of actual dividends from a taxable Canadian corporation retained by the trust will be done on Schedule 8. Federally, the gross-up rate for eligible dividends received in the year is 45% and 25% for ordinary dividends.
The gross-up does not apply to taxable Canadian dividends received by the trust if they are allocated to a non resident beneficiary.
DT Max will enter the dividend amounts on federal schedule 8.
The following options are applicable for the keyword Dividends.
Actual amount of ordinary dividends
Actual amount of eligible dividends
Dividends from rental arrangement
Other dividends (specify)
Non-taxable dividends
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 03 - Total of actual amount of dividends from taxable Canadian corporations
Line 05 - Other investment income
Use the keyword Interest to select the type and amount of interest income earned by the trust.
The following options are applicable for the keyword Interest.
Bond, trust company, bank interest
Other deposit (specify)
Mortgage, note, securities interest
Interest on tax refund
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 05 - Other investment income
Use the keyword Other-Investment to specify the type and amount of other investment income earned by the trust. Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 05 - Other investment income
Use the keyword Death-Benefit to enter the death benefits received under the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP).
The following options are applicable for the keyword Death-Benefit.
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 19 - Other deductions from total income
A death benefit is an amount for a deceased person's employment service. This amount is shown in box 106 of the T4A slip. If a death benefit is to be taxed in the trust according to the provisions of the trust document, you may be able to exclude up to $10,000 of the amount from the trust's income.
If no one other than a trust received a death benefit, report the amount that is more than $10,000. Even if the trust did not receive all of the death benefits in one year, the total tax-free amount for all years cannot exceed $10,000.
A testamentary trust may receive a payment as a result of the employee's death to recognize the employee's service in an office or employment. This payment may qualify as a death benefit, and the trust or the beneficiary may be able to exclude up to $10,000 of the amount from income.
Use the keyword Eligible-Deduct to indicate the amount of deduction allocated to the beneficiaries or the trust. If an amount is to be applied against the income taxed in the trust, only the taxable amount will be reported on line 19 of the federal return and on line 61 of the Quebec trust return.
The following options are applicable for the keyword Eligible-Deduct.
Use the keyword Retiring-Allow to enter the eligible and non eligible retiring allowances received per box 26 or 27 of the T4A slip.
This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.
The following options are applicable for the keyword Retiring-Allow.
Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword RRSP-RRIF to enter the income earned after death as "Other Income" on line 19 of the Federal T3 Trust Return as well as on line 61 of the Quebec TP-646 Trust Return. It will be identified as Code 05 for Quebec.
The following options are applicable for the keyword RRSP-RRIF.
Federal and Quebec (if applicable) This option will enter the information as "Other Income" on line 19 of the Federal T3 Trust Return as well as enter the code 05 and the amount on line 61 of the Quebec TP-646 Trust Return, if the Quebec return is applicable.
Quebec only The "Quebec only" option will enter the code 05 and the amount only on line 61 of the Quebec TP-646 Trust Return. No amount will be entered on the Federal trust return.
Use the keyword RESP-AIP to enter all accumulated income payments (AIP's) received from registered education savings plans (RESP's).
This amount appears in box 40 of all T4A slips issued for the year the payments were received.
Use Oth-Prop-Inc to enter other income to be included in the calculation of the cumulative net investment loss (CNIL).
This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 19 - Other deductions from total income
Use the keyword COVID19-Assist to enter the federal, provincial or territorial government COVID-19 assistance, such as the Canada Emergency Wage Subsidy (CEWS). The total amount received for the tax year must be included on line 11, Other Income, on the T3 trust return.
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 19 - Other deductions from total income
Use Other-Inc to enter other income not to be included in the calculation of the cumulative net investment loss (CNIL).
This amount is reported as other income on line 19 of the federal income tax return and on line 61 of the Quebec income tax return.
Use [Alt-J] to enter different values for other jurisdictions.
See the CRA's general income tax guide:
Line 19 - Other deductions from total income
Use ECP-Disp to enter the amount of deemed taxable capital gain on the disposition of eligible capital property.
This amount will not be added to the net income but will be used on line 308 of schedule 3 to calculate the eligible taxable capital gains.
See the CRA's general income tax guide:
Line 05 - Other investment income
Use the keyword Artist-Annuity
The trust may include an amount on line 61 of the TP-646 return that is designated as additional income if, depending on the case: - it elected to have its taxation year end on December 15; - the trust is a mutual fund trust throughout the year and it makes no designation under subsection 104(13.1) or 104(13.2) of the Canada Income Tax Act.
Any portion of the additional income that is designated in respect of a beneficiary during the taxation year must be reported on Schedule C, but the amount can only be deducted in the following year's tax return, on line 81.
See the CRA's general income tax guide:
Line 05 - Other investment income
Use the keyword Prov-Employ to indicate the province of employment if different from the trust's province of residence.
If the trust was residing in Quebec and earned employment income outside of Quebec, DT Max will transfer to Quebec 40% of the federal income tax withheld at source, deduct it on line 86 of the federal trust return and add it to line 152 of the Québec trust return.
The following options are applicable for the keyword Prov-Employ.
Use the keyword FIT to enter the federal income tax deducted at source.
DT Max will enter this amount on line 86 of the federal tax return.
Use the keyword PIT to enter the Quebec income tax deducted at source.
DT Max will enter this amount on line 152 of the Quebec tax return.
Use Footnote.s to indicate the explanatory footnote that appears on the T-slip or the Relevé.
The following options are applicable for the keyword Footnote.s.
See the CRA's general income tax guide:
Line 05 - Other investment income
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Description.inc 
Oth-Death-Benefit 
Eligible-Deduct