Step 2 - Total income

Income you earned that was not reported on an information slip must still be reported on your tax return.

Amounts that are not reported or taxed

You do not have to report certain non-taxable amounts as income, including the following:

• lottery winnings of any amount, unless the prize can be considered income from employment, a business or property, or a prize for achievement

• most gifts and inheritances

• amounts paid by Canada or an allied country (if the amount is not taxable in that country) for disability or death of a war veteran due to war service

• GST/HST credit (and related provincial and territorial credits and benefits), the CCB (and related provincial and territorial benefits) and the CAIP (depending on your province or territory of residence)

• family allowance payments and the supplement for handicapped children paid by the province of Quebec

• compensation received from a province or territory if you were a victim of a criminal act or motor vehicle accident

• most amounts received from a life insurance policy following someone's death

• most types of strike pay you received from your union, even if you performed picketing duties as a requirement of membership

• amounts that are exempt from tax under the Indian Act

• most amounts received from a TFSA

Reporting foreign income and other foreign amounts

Report, in Canadian dollars, your foreign income and other foreign currency amounts (such as expenses and foreign taxes paid). In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day it arises. The CRA also generally accepts an exchange rate from another source if it meets all of the following conditions.

The source is:

• widely available

• verifiable

• published by an independent provider on an ongoing basis

• recognized by the market

• used in accordance with well-accepted business principles

• used to prepare financial statements (if any)

• used regularly from year to year

Other sources that the CRA generally accepts include rates from Bloomberg L.P., Thomson Reuters Corporation and OANDA Corporation.

In certain circumstances, an average rate may be used to convert foreign currency amounts. See Income Tax Folio S5-F4-C1, Income Tax Reporting Currency. Also refer to this folio for information about converting foreign amounts generally.

For more information about converting foreign income taxes paid and reporting this amount on your return, see Income Tax Folio S5-F2-C1, Foreign Tax Credit.

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