Line 15000 and why it matters at tax time.
Line 15000 is the sum total of your gross income over the year from all your income sources. It’s essentially your starting point because it’s the amount you’d be taxed on if you didn’t apply any credits or deductions. Line 15000 is also important because:
1) It will determine which, if any, federal or provincial programs, tax credits and tax benefits you qualify for.
2) It will impact your chances of getting approved for a loan, mortgage or line of credit.
3) It will be used to calculate child and/or spousal support obligations.
You can see Line 15000 in three different places:
On your filed T1 Tax Return: Look for the line labeled "Total Income" on the summary page of your completed T1 return.
On your Notice of Assessment (NOA): Once your taxes are filed and processed, CRA will mail you a Notice of Assessment that summarizes your tax information.
Online, through your CRA My Account: CRA keeps copies of your returns, assessments and tax slips for you to review any time. Go to page one, titled Income Tax and Benefit Return, move to page three (Step 2 – Total Income).
Why accuracy matters for Line 15000?
If the Line 15000 number is incorrect, you could pay less tax than you owe. But, since the CRA employs more than 50,000 people, the discrepancy will be flagged eventually and you will have to cover the shortfall, with interest.
CRA takes evading tax payments through faulty reporting seriously. It’s why failing to report as little as $500 may expose you to penalties.
In short, by not knowing where Line 15000 is, what it is, and why it’s important to verify, you’re passively putting your financial stability at risk.
Reviewing your tax documents? Start with Line 15000.
CRA made finding Line 15000 on your T1 tax return very easy to do: it’s on the bottom right-hand corner of the page, and a sum total of all the lines that come before it:
Line 10100: Employment income
Line 10400: Other employment income
Line 11300: Old age security (OAS) pension
Line 11400: Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits
Line 11500: Other pensions and superannuation.
Line 11600: Elected split-pension amount.
Line 11900: Employment insurance (EI) and other benefits.
Lines 12000 and 12010: Taxable amount of dividends from taxable Canadian corporations.
Line 12100: Interest and other investment income.
Line 12200: Net partnership income.
Line 12500: Registered disability savings plan income.
Lines 12599 and 12600: Rental income.
Line 12700: Taxable capital gains.
Lines 12799 and 12800: Support payments received.
Line 12900: Registered Retirement Savings Plan (RRSP) income.
Line 13000: Other income.
Line 13010: Taxable scholarship, fellowships, bursaries, and artists’ project grants.
Lines 13499-14300: Self-employment income.
Line 14700: Subtotal of lines 14400-14600:
Line 14400: Workers' compensation benefits.
Line 14500: Social assistance payments.
Line 14600: Net federal supplements paid.
Of course, verifying Line 15000 will involve at least a quick glance at the inputs that make up the total number showing. In a previous piece, we looked at verifying what your employer reported as your income, but you really should double check them all. Especially important is to double-check the information coming from a third party.
Avoid these three Line 15000 errors.
Sidestepping these potential potholes can protect you from legal problems, costly payments and punitive CRA penalties:
Not disclosing all your income streams: CRA compares your T4 against records from banks, employers, and agencies. Failing to report every income source will more than likely be discovered and trigger an audit, a penalty or both.
Falsely claiming deductions: It’s seen as tax evasion. Serious cases can result in criminal prosecution and up to 14 years in jail.
Failing to report foreign income: You could wind up in a double taxation situation, and no one would be the wiser. Report any international income to access the Federal Foreign Tax Credit.
If you have doubts about the accuracy of Line 15000, consult a trusted financial professional. A brief chat can help you avoid the ramifications of filing an inaccurate T4.
T4 review is smart tax prep and diligent wealth planning.
At Optimize, we simplify tax management, so you can focus on growing your wealth. Our team builds personalized strategies that secure your income and eliminate tax-season stress by doing things like double-checking your T4. Because a great way to create wealth with intention is to protect it with equal intentionality.