Taxable and non-taxable income

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

Amounts earned in foreign currency

Amounts earned in foreign currency must be reported in Canadian dollars. 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 that 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)
Income that you earn from non-taxable amounts, such as interest income on lottery winnings, is taxable.
End of note

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 (TP-1.G-V).

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