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

Foreign currency

Amounts earned in foreign currency must be reported in Canadian dollars. To convert them, use the exchange rate in effect when you earned them. You can use the average exchange rate for the year if the amounts were received over the entire year. To find out the exchange rate, consult the Bank of Canada website.

Non-taxable amounts

Do not include the following in your income:

• the shelter allowance;
• the value of property received as an inheritance;
• amounts received under a life insurance policy further to the death of the insured;
• the Family Allowance from Retraite Québec;
• Canada Child Tax Benefit payments;
• the solidarity tax credit;
• the tax credits respecting the work premium;
• the GST credit;
• lottery winnings (however, if you sell lottery tickets, any amount you receive for having sold a winning ticket must be included in your business income);
• strike pay;
• 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) or a first home savings account (FHSA).

Retroactive payments and support-payment arrears

If you received a retroactive payment in 2024, you must report it on the appropriate line of the return. If at least $300 of the payment applies to previous years, we can, at your request, determine whether it is to your advantage to average that portion of the payment. If it is, we will calculate the income tax payable on that portion of the payment as if you had received it in the previous years concerned and will deduct it from your taxable income for 2024. We will then enter a tax adjustment on line 443.

To find out what amounts can be averaged, see form TP-766.2-V, Averaging of a Retroactive Payment, Support-Payment Arrears or a Repayment of Support.

If you want us to do the calculation, report the payments on the appropriate line(s) of your return and check box 404. Also complete form TP-766.2-V and enclose it with your return. If you complete Part 4 of the form, check box 405 of your return.

Transfer of property

If you transferred or loaned property to one of the people listed below, you must report the income (such as dividends or interest) that they earned from the property:

• your spouse; or
• a person who was born after December 31, 2006, and who was:
  • your niece or nephew, or
  • related to you by blood, marriage, civil union or adoption.

However, you are not required to report income from property that you transferred to your spouse so that they could contribute to a tax-free savings account (TFSA) or a first home savings account (FHSA), provided their contributions do not exceed the available contribution room of either account.