If you are employed or earning other employment income in Canada, it’s important to know the meaning of line 10100 on your tax return.
Most Canadians are also asking the meaning of line 10100 tax return due to the Canada Revenue Agency adjustments of tax code lines in 2020.
Because of this adjustment, your tax return may be incorrect or incomplete if you file the wrong lines. You can’t afford to face the consequences of that!
So here I provide everything you need to know about line 10100 tax return and what should be included when filling it.
Let’s get started!
What is Line 10100 on Tax Return?
Line 10100 on your tax return simply refers to your employment income that often appears on your T4 slips.
Accordingly, your employment income includes your wages, salary, commissions, gratuities, tips or even honoraria.
Before the CRA adjustment of tax code lines in 2020, line 10100 was referred to as line 101 in 2021.
However, the code line changes didn’t alter the meaning of line 101, as with other code lines.
That said, filing your line 10100 tax return allows you to claim Canada employment amount on either of the following that’s less:
- $1,245 or
- The total amount you reported on line 10100 and line 10400 as employment income.
Often, line 10100 contains the employment income (T4 slips) from all your employers. As a result, you need to contact any of your employers about missing T4 slips.
Note: All employers are expected to give their employees T4 slips on or before the end of February.
Where is Line 10100 on Tax Return?
The CRA code line adjustment makes it difficult for many Canadians to locate line 10100 on their tax return.
But you can easily locate line 10100 on your T1 General form. When you download and print the T1 form through CRA My Account, you will find line 10100 on page 3 of the T1 form.
As you will see, line 10100 is on the second stage of the tax filing process of the T1 form.
What Income Should You Include in Tax Return Line 10100?
As mentioned previously, tax return line 10100 contains all your employment income from wages, salaries, commissions, gratuities, bonuses, tips, and honoraria.
As a result, any of the above amounts you received from your employer qualified as employment income and must be reported on your T4 slips.
However, your T4 slip may not include all your employment income. But you’re still expected to calculate them in your line 10100 tax return.
Also, if you have any employment income that’s not included in your T4 slip, you’re expected to report it to line 10400 (Other Employment Income).
Furthermore, you’re expected to include other incomes that are not on your T4 slip to line 10400. These include your:
- Medical premium benefits
- Employee profit-sharing plans
- Supplemental unemployment benefits
What Other Income Should You Report on Tax Line 10100?
There are other types of employment income that may not be found in your T4 slip. You’re expected to report such income to line 10400 (formerly line 104). These include:
- Employment income from another country
- Occasional employment earnings or tips
- Net research grants
- Wage-loss replacement insurance plans income
- Employment expenses benefit from GST/HST and QST
- Cleric’s housing allowance
- Guaranteed annual wage plan payment
- Work or invention royalties
- Employee profit-sharing plan payment
- Group life insurance taxable payment from your former employer
What’s the Difference Between Line 10100 and Line 10400?
The difference between tax line 10100 and tax line 10400 lies in what they contain.
As mentioned previously, tax line 10100 contains all your employment income from your T4 slips, such as your wages, salaries, gratuities, bonuses etc.
On the other hand, line 10400 contains other employment income that you earn but are not included on your T4 slip, such as your income from another country, net research grants, wage-loss replacement insurance plans income etc.
So as you can see, you may need to fill both line 10100 and 10400 according to your circumstance.
But if you are not sure what to report as a result of not receiving your T4 slip, contact your employer (s) as soon as possible before deadlines.
What is the Difference Between Line 10100 and Line 15000?
Also, the major difference between line 10100 on tax return and line 1500 is content.
While line 10100 contains your total employment income, line 15000 contains your total income or gross income before tax deduction.
That’s to say, line 15000 is bigger than line 10100 because it includes both employment income and other income.
Furthermore, all incomes reported on line 10100 on tax return are taxable, whereas not all incomes reported on line 10100 are taxable.
However, interest or income earned on non-taxable amounts must be reported on line 15000.
Overall, while line 10100 on tax return determines your employment income after tax, line 15000 determines your post-tax net income.
Click here to learn more about line 15000 on tax return.
Line 10100 Emergency Services Volunteers
This refers to the payment you receive as a government, a municipality employee or a worker for any emergency such as:
- Volunteer firefighter
- Volunteer ambulance technician
- Search and rescue volunteer
Thus, you will only see the taxable amount for the work on your T4 slips.
That said, you may receive $3,000 for search and rescue volunteers’ (SRVA) or as for volunteer firefighters’ amount (VFA).
However, if you qualify for the $1,000 exemption on your line 10100 tax return or the SRVA or VFA, you can only claim one.
But if you decide to claim the $1,000 exemption, you are to file only the amounts listed in your T4 slips. As a result, you can’t claim other amounts.
On the other hand, if you’re employed not as a volunteer or if you decide to claim the SRVA or VFA, you must pay tax for the total amount.
Click here for more information about the Line 10100 Emergency Services Volunteers.
Who is Required to File a Line 10100 on Tax Return?
Not all Canadians are required to file line 10100 on tax return. Thus, individuals that are expected to file this line are those who:
- Have employment income such as wages, salary, commissions, gratuities, tips or honoraria.
- Receive other employment income.
Furthermore, you’re expected to file the line 10100 tax return if you receive the following income:
- Occasional employment earnings or tips
- Wage-loss replacement insurance plans income
- Employment expenses benefit from GST/HST and QST
- Employment income from another country
- Net research grants
- Guaranteed annual wage plan payment
- Cleric’s housing allowance
- Work or invention royalties
- Group life insurance taxable payment from your former employer
- Employee profit-sharing plan payment
That said, your employer is expected to deduct tax charges on all your paycheques and submit them to the CRA.
But if the amount deducted by your employer is less than the required tax amount, you must pay more tax.
On the other hand, the CRA will pay you back if your employer deducts an excess amount from your paycheques toward tax payment.
Finally, paying your employment income tax is one of the qualifications for receiving government benefits in Canada. On the other hand, not paying your employment income attracts heavy penalties.
What are the Consequences of Not Filing Line 10100 Tax Return?
The Income Tax Act imposes penalties for failing to file a tax return when required or making fraudulent claims on your tax return.
Additionally, there are fines for omitting critical information while submitting your taxes, resulting in an understatement of your income.
Moreover, if you commit willful fraud or tax evasion, you may face criminal penalties.
Here are two major penalties for not filing your 10100 tax return and tax evasion and fraud:
1. Late Tax Filing or Under Payment
Failure to file a tax return when required results in a 5% penalty on the amount owing, plus 1% every month the return is late, up to one year. Additionally, daily interest is imposed on any unpaid taxes.
However, if you are unable to make a single payment of the entire balance due, you can reach out to the Canada Revenue Agency (CRA) to arrange for a payment plan.
But if it is revealed that you owe more than you estimated, you have the option of appealing.
2. Tax Evasion and Fraud
You may be charged with a summary offence by the Income Tax Act if you do not file your tax return.
Hefty fines and a jail term are some of the punishments for tax evasion in Canada.
On the other hand, if you are convicted of tax evasion due to deceiving or misrepresenting the CRA, you may face a penalty of up to 200 percent of the total evaded taxes.
Additionally, you may spend up to two years in jail for tax evasion and fraud.
As a result, major offences may result in criminal prosecution. Tax evasion is a criminal offence that is punishable under criminal law and the Criminal Code of Canada.
Consequently, a conviction for tax evasion will result in a criminal record. Your inability to pay will also be reported to credit bureaus, which may damage your future loan eligibility.
Finally, the CRA can seize your earnings, property, and other assets until you fully pay your taxes, interest, and penalties.
Final Thoughts on Line 10100 Tax Return
Now you know what line 10100 means on your tax return. Hopefully, you can now trace line 10100 on your T1 General form and fill all your employment income in there.
Ensure that you fill all your tax returns on time to avoid any penalty.
But if you have any information that is inaccurate, missing, or was not included on your previous tax return, the Voluntary Disclosures Program (VDP) may be your saviour.
The CRA establishes the Voluntary Disclosures Program (VDP) to recover unpaid taxes while avoiding the costs and time associated with prosecuting individuals.
Thus, VDP allows you to disclose any inaccurate, missing, or omitted information from previous tax returns without incurring any penalty.
However, you will still be required to pay back taxes and interest, although the CRA occasionally grants partial interest relief.
FAQs on Line 10100 Tax Return
Is Line 101 the Same as Line 150 on Tax Return?
No. Line 101 (now line 10100) refers to your total employment income, while line 150 (now line 15000) refers to your total income or gross income before tax deduction.
Thus, line 15000 is larger than line 10100 because it contains both employment income and other incomes.
Additionally, all incomes on line 10100 are taxable, but not all incomes on line 15000 are taxable.
Although interest or income generated on non-taxable incomes must be included on line 15000.
Is Line 15000 the Same as 10100?
No. Line 15000 stands for your total income before tax deductions, while line 10100 stands for your employment income. As a result, line 10100 is part of your line 15000 tax return.
What if My T4 is Incorrect?
Contact your employer immediately once you notice your T4 is Incorrect. Else, you may attract penalties to yourself.
Fortunately, the CRA allows you to rectify any error on your T4 slip and file your tax at a later time.
If you have more questions on line 10100 on tax return, let me know in the comment section.
