Statement of investment income, carrying charges, and interest expenses (including Schedule N)

If you’re a resident of Québec, you’ll also need to complete Schedule N to calculate your adjustment of investment expenses, which is combined with the federal worksheet in H&R Block’s tax software. The combined form is called Statement of investment income and adjustment of investment expenses (federal worksheet & Schedule N) and can be found under the Pension contributions & expense page on the Credits & deductions tab.

Follow these steps in H&R Block's 2023 tax software:

1. On the left navigation menu, under the Credits & deductions tab, click Tax Topics.

2. Select the Investments income & expenses checkbox.

   

3. At the bottom of the page, click Add selected topics to my return.

4. Under the INVESTMENT INCOME heading, select the checkbox labelled Statement of investment income, carrying charges, and interest expenses. If you’re a Québec resident, select Statement of investment income and adjustment of investment expenses (federal worksheet/Schedule N).
   
   
5. When you arrive at the selected page, enter your information into the tax software.

You’ll need to have information related to the following investment income and expenses to complete this page:

Other than eligible dividends and eligible dividends

Actual amounts of dividends (eligible and other than eligible) from taxable Canadian corporations - these are Canadian-source dividends or profits you receive from your share of the ownership in a corporation.

Note, simply enter the actual amount of dividends you received on this page and not the taxable. H&R Block’s tax software will automatically multiply your actual amount of dividends with the applicable percentage to calculate your taxable amount of dividends.

Interest and other investment income

If you had income from any of these sources, report these on this page:

• Interest from bank accounts, term deposits, guaranteed investment certificates, or Canada savings bonds
• Treasury bills
• Earnings on a life insurance policy
• Foreign interest and dividends
• Interest earned on a mortgage (this is a mortgage you’ve given to someone for investment purposes)
• A statement of interest on your notice of assessment from the Canada Revenue Agency (CRA)

Note: If you received income during the year that doesn’t fit into any of the categories listed above (for example, if you received interest on money you loaned to a business), you can enter that income on the Other income earned or received in 2023 page under the Other tab on the Credits & deductions tab.

Carrying charges, interest paid, and other expenses

If any of the following carrying charges and interest expenses applied to you during the year, you’ll need to report these on this page:

• You paid someone to give you investment advice or manage your portfolio, like having your investment income recorded for you
• You paid interest on money you borrowed to invest/earn investment income (excluding RRSPs or a TFSA)
• You paid interest on a policy loan made to earn income
• You paid legal fees related to receiving support payments
• You paid someone to complete your return if you had income from a business or property
• You paid fees, other than commissions, to certain investment counsellors (except fees paid with respect to an RRSP, a PRPP/VRSP, a RRIF or a TFSA) (Québec residents)

Note: Don’t enter any safety box charges, subscription fees for financial newspapers or magazines, or legal fees you paid to get a separation or divorce on this page. Visit the Canada Revenue Agency (CRA) website for more information on what investment expenses can be claimed.

Adjustment of investment expenses (Québec)

As a Québec resident, you’ll need to complete this section of the Statement of investment income and adjustment of investment expenses (federal worksheet & Schedule N) page to calculate your adjustment of investment expenses. Keep in mind, the investment expenses you deduct on your return can’t be more than your investment income.

Complete this section if want to calculate any of the following deductions:

• The total of other expenses you paid to earn property income

  These are the total of other expenses you paid to earn property income, including:

  • Repayment of interest received
  • Foreign income tax paid on income from property other than rental property
  • Life insurance premiums related to property income that isn’t rental income
  • Other expenses relating films
  • Repayment of an advance on a life insurance policy

• Other property income allocated by a trust and property income allocated to shareholders

• Your unused adjustment of investment expenses amounts from previous years

  This is thetotal of the amounts entered since 2004for your adjustment of investment expenses and adjustment of other investment expenses, minus the amount already used to reduce your investment income for a previous year. You can also find your unused amount online 80 of your 2022 Schedule N. If this is the first time you’re completingSchedule N, leave this field blank.

  Don’t take into account any bad debts deducted in the calculation of property income.

Note: You’ll notice that there are fewer fields to fill out on your Statement of investment income and adjustment of investment expenses in H&R Block’s tax software than there are on the Schedule N found on Revenu Québec’s website. That’s because our software automatically pulls information from other pages you’ve already entered. These include:

• a deduction for a loss from a partnership of which you were a specified member
• a deduction for carrying charges and interest expenses
• a deduction for exploration or development expenses