Tax Season is upon us, so you may be tempted to save yourself a few dollars by doing your own taxes. Tax returns may seem straightforward, but they can be complicated and stressful to the untrained eye. Luckily, Filing Taxes is here for your help. Let’s begin with “What is Line 10100 on My Tax Return?”
One of the few tax lines that most Canadians will have on their tax return is line 10100. In case you're wondering what exactly it is, you've come to the right place.
What is Line 10100 on Tax Return?
Simply put, Line 10100 captures the employment income on your Canadian tax returns. Employment income is usually shown in box 14 of the T4 tax slips you received from your employer(s).
Salaries, commissions, wages, gratuities, bonuses, and tips are a few examples of employment income that could be reported on box 14. Your employment income is reported on box 14 of your T4 slips, and the total of your box 14 amounts from all T4 slips makes up your line 10100. Although line 10100 is your employment income, it doesn't always represent your total income. This amount is found lower on your return on line 15000.
When you have an employer (or employers), they will provide you with a T4 slip during tax season. This slip will state your income to place into line 10100 on your tax return.
If you have not received a T4 slip from your employer, you may want to speak to them directly. All employers are required to submit T4 slips to their employees by the end of February. Since line 10100 depends on T4 slips, it is important to contact your employer about missing slips. If your employer fails to send the forms, even after contacting them, you can log in to CRA My Account and view slips from previous tax years.
Where Is Line 10100 on the tax return?
Locating line 10100 can be a tad confusing, especially if it is your first time filing your tax return. The entry is often used to verify CRA logins and is a vital part of the annual return. If you have completed filling the return and looking back to find line 10100, it is located on the third page of your T1 General Form. You can pull up your T1 from CRA My Account and print it or complete online filling. Line 10100 appears in Step 2 on Page 3 of your T1 – Income Tax and Benefit Return. It is also the first line of Step 2 you will encounter on provincial and territorial income return forms and designated as the "Total Income" section of the T1.
The Tax Information to Enter on Line 10100
The figures in Box 14 of your T4 slips are what goes into line 10100. Box 14 captures all your employment income across all your jobs and includes salary, wages, bonuses, and so on. If you receive any of these amounts from your employer and they’re included in box 14 of the T4 slips, they count as employment income used in calculating amounts for line 10100.
Not all employment income is included in the T4 slip, which you need to calculate line 10100 entries. For instance, income earned from another country, net research grants, veteran benefits, clergy housing allowance, royalties, and wage-loss replacement don't appear on your T4. Line 10400 is known as Other Employment Income and includes some insurance plans and workplace payment plans. Other non T4 entries that you should add to line 10400 include income from supplemental unemployment benefits, employee profit-sharing plans, and medical premium benefits, as well as tips not included on your T4 slip.
Why is Line 10100 Important?
Why is it important to calculate the amount that goes to line 10100, or why is it even necessary to know the amount? Here are a few reasons:
Employment income is the biggest tax line item for most Canadians.
It is used to verify CRA logins and you may be asked to confirm the amount if you call CRA on the phone
Additionally, it is used to calculate how much Canada employment amount, line 31260, you can claim on your tax returns.
Is Line 10100 my total income?
The amount in Line 10100 only contains employment income. If you have income from other sources, then your total income would differ from this amount.
Line 15000, found at the end of Step 2 of the T1 – Income Tax and Benefit Return, is the tax line that captures income from all sources.
Is Line 10100 the same as Line 101?
Yes. As of 2020, tax forms have been revised. Several different revisions have been made, one of them is related to the numbers and lines. Lines that used to contain only 3-4 digits now contain 5 digits. Line 101, for example, has now been changed to Line 10100.
Why the changes? Perhaps to harmonize the numbering system or to make it easier to add new tax lines in the future.
Final Words
Hopefully, you now have a better understanding of what line 10100 on your tax returns means and where to find the amount.
Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.