Why Do I Need to Claim Bank Interest?
CRA Compliance: Ensures your return is accurate and adheres to CRA regulations
Avoid Penalties: Failure to report income, even small amounts, can result in penalties and interest charges
When Do I Need to Claim Bank Interest?
If you earned any interest during the tax year, whether it’s from a checking, savings, or other deposit account, it must be declared
Even small amounts of interest income (e.g., $1 or $2) must be reported
Best Practices
Keep all account statements and records of interest earned for at least six years
Review your T5 slip for accuracy and match it with your own records
How to Report Bank Interest
T5 Slip: Your financial institution will issue a T5 – Statement of Investment Income if the total interest earned exceeds $50 CAD
No T5 Slip: If the interest earned is less than $50 and no T5 is issued, you are still required to report the amount on your tax return
Where to Report Bank Interest Without a T5 Slip on Your Tax Return
Use the Other Investment Income form in CloudTax to declare your interest income
Why This Matters
Reporting bank interest is a small but essential part of filing your taxes accurately.
CloudTax makes it easy to include your interest income, whether or not you receive a T5 slip, ensuring compliance and peace of mind.