Total Income

In general, any amount that is earned, whatever its source, constitutes income.

Amounts earned in foreign currency and exchange rates

Amounts earned in foreign currency must be reported in Canadian dollars. To convert amounts earned in a foreign currency, use the exchange rate in effect at the time you earned the amounts. You can use the average exchange rate for the year if the amounts were received over the entire year. For information on the exchange rate, see Exchange Rates on the Bank of Canada website.

Non-taxable amounts

Do not include the following amounts in your income:

  • the allowance received under the Shelter Allowance program
  • the value of property received as an inheritance
  • amounts received under a life insurance policy further to the death of the insured
  • the child assistance payment from the Régie des rentes du Québec  
  • the solidarity tax credit
  • any of the tax credits respecting the work premium
  • the GST credit 
  • lottery winnings 
  • strike pay  
  • Canada Child Tax Benefit payments  
  • benefits received under a wage loss replacement plan or an income insurance plan, other than a plan to which your employer made a contribution
  • as a rule, income, gains and losses arising from investments held in a tax-free savings account (TFSA)
Note
Income that you earn from non-taxable amounts, such as interest income on lottery winnings, is taxable.

For information on retroactive payments and support-payment arrears, transfers of property or the split income of a child, consult the guide to the income tax return (electronic version).

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