When doing your own income taxes, Line 15000 is a very important one. It’s the line where you will calculate your “total income”. But what exactly does “Total income” mean, what does it include, and how can you calculate it? We’ll be walking you through 15000 on your tax returns so you can understand what it means on your tax return.
What is Line 15000 on Tax Return in Canada?
Formerly known as Line 150, Line 15000 on your tax return is where you will place your total income before deductions. This can also be referred to as your “gross income”. This includes your total pay from an employer or other sources before any taxes or deductions are removed.
Keep in mind, however, that the taxes you owe or the amount you receive back is not based on this total income. Rather, what you owe will be calculated based on your Taxable Income.
So why is Line 15000 Important?
If Line 15000 isn’t used to calculate what taxes you owe, then why is it important? It’s important to know your total income because different institutions may need to use it in the future.
For example, if you ever run into a situation where you need to calculate spousal support or child support, this information can be used for legal purposes. Your total income amounts can also be used for things like obtaining a mortgage, or refinancing a loan or line of credit.
What is included in “Total Income”?
Calculating your Total income can be a little tricky, because it includes a wide range of things. In order to determine your total income, you must consider things like:
- Your employment income and/or commissions
- Any bonuses, tips, gratuities, or honoraria received
- Any benefits from :
- Your Old Age Pension Plan
- Pension from spouse
- Any other Pension Plans
- Employment insurance
- Rental incomes
- Universal Child Care Benefit
- Capital gains
- Scholarships, grants, or other allowances
- Income from self-employment
- Workers compensation benefits
- Social assistance payments
- Federal supplements
How Do I Calculate my Total Income?
In order to calculate your total income, you must add Lines 10100, 10400, 14300, and 14700, where:
Line 10100 = Employment Income
Line 10400 = Other Employment Income
Line 14300 = Self-Employment Income
Line 14700 = Total of Workers Compensation, Social Assistance, and Net Federal Supplements.
Again, it’s important to note that line 15000 (Total Income) is not the same as your Taxable Income. Once you have calculated your Total Income, several items still need to be deduced before determining your Net income for Tax Purposes and your Taxable Income.
In summary, Line 15000 is where you will place your Total Income. This involves the addition of several other lines, which can include multiple calculations.
If you feel comfortable, you can make these calculations by hand, but Tax Software can help to make them much simpler. Alternatively, a Tax Consultant can easily help you make these calculations as well.