Where does each box on my client's T3 slip go on the T1?
On 2025 and 2026 T3 slips, boxes 32 and 50 go on line 12000, box 21 minus box 30 goes on Schedule 3 line 17600, box 26 minus box 31 goes on line 13000, and box 25 goes on line 12100. Boxes 39 and 51 go on line 40425. Boxes 23 and 49 aren't reported; box 42 adjusts cost base.
Where does each T3 box go on the T1?
Each box has a fixed home on the return. These are the CRA's instructions to the individual who receives the slip canada.ca.
| Box | What it holds | Where it goes |
|---|---|---|
| 21 | Capital gains (full amount) | Box 21 minus box 30, on line 17600 of Schedule 3 |
| 22 | Lump sum pension income | Line 13000 |
| 23 | Actual dividends other than eligible | Not reported |
| 24 | Foreign business income | Line 13500, and Form T2209 |
| 25 | Foreign non business income | Line 12100, and line 43300 of Form T2209 |
| 26 | Other income | Box 26 minus box 31, on line 13000 |
| 30 | Capital gains eligible for the deduction | The matching lines of Schedule 3 |
| 31 | Qualifying pension income | Line 11500 |
| 32 | Taxable dividends other than eligible | Line 12000, and also line 12010 |
| 33 | Foreign business income tax paid | Line 4 of Form T2209 |
| 34 | Foreign non business income tax paid | Line 1 of Form T2209 |
| 37 | Insurance segregated fund net capital losses | Line 17600 of Schedule 3 |
| 38 | Part XII.2 tax credit | Line 45600 |
| 39 and 51 | Federal dividend tax credit | Line 40425 (total of both) |
| 40, 41, 43 | Investment tax credits | Form T2038(IND) |
| 42 | Amount resulting in cost base adjustment | Not income: adjust the ACB of the units |
| 49 | Actual eligible dividends | Not reported |
| 50 | Taxable eligible dividends | Line 12000 |
Box 26 is a catch all. The trust can put interest, net rental income, net business income, pension income other than a lump sum, retiring allowances and death benefits in it canada.ca. That's why it all lands on line 13000 rather than line 12100. Box 35 (eligible death benefits) and boxes 46 and 47 are already inside box 26, so don't add them again. Your client may not have to pay tax on up to $10,000 of death benefits, and a sole recipient reports only the amount above $10,000
canada.ca.
Why you report box 50, not box 49
Boxes 23 and 49 show the dividends actually paid out, and the CRA's instruction for them is short: do not report these amounts canada.ca. The trust has already done the gross up. For an individual beneficiary, box 32 is box 23 multiplied by 1.15, box 50 is box 49 multiplied by 1.38, box 39 is 9.0301% of box 32 and box 51 is 15.0198% of box 50
canada.ca.
| Dividend type | Actual (not reported) | Taxable (report) | Federal credit |
|---|---|---|---|
| Eligible | Box 49 | Box 50 = box 49 × 1.38 | Box 51 = 15.0198% of box 50 |
| Other than eligible | Box 23 | Box 32 = box 23 × 1.15 | Box 39 = 9.0301% of box 32 |
Put the total of boxes 32 and 50 on line 12000, repeat box 32 on line 12010, and claim the total of boxes 39 and 51 on line 40425 canada.ca. Those rates match the 2026 dividend gross up figures for T5 dividends. If a preparer keys box 49 instead of box 50, the return understates income by 27.5% of the grossed up amount and the credit no longer ties.
Box 21 is the full gain, and Schedule 3 takes half
The trust reports its taxable capital gain on line 921 of Schedule 9, and box 21 is the beneficiary's share of that line multiplied by 2 canada.ca. So box 21 is the whole gain. Subtract any box 30 amount from box 21 and report the difference on line 17600 of Schedule 3
canada.ca. Schedule 3 then brings half into income on line 12700, because the 2026 inclusion rate stayed at 50% after the increase was cancelled.
Box 30 is the part of box 21 that came from qualified small business corporation shares or qualified farm or fishing property, and only a personal trust fills it in canada.ca. It goes on the matching lines of Schedule 3 so your client can claim the lifetime capital gains exemption against it. Boxes 55 and 57 split those gains by whether the disposition happened before June 25, 2024 or after June 24, 2024.
Two smaller items share line 17600. Box 37 (insurance segregated fund net capital losses) goes there as a loss, and a box 21 amount with an asterisk carries a footnote showing the foreign portion, which goes on line 43300 of Form T2209 for the foreign tax credit canada.ca.
What box 42 does to the adjusted cost base
Box 42 isn't income. It changes the ACB of the units named on the slip canada.ca. A positive amount, usually a return of capital, reduces the ACB. A negative amount is added to the ACB. The trust has to put an asterisk beside box 42 and footnote whether the amount adds to or subtracts from the cost base
canada.ca.
The edge case is a return of capital larger than the remaining cost. When repeated box 42 amounts push the ACB below zero, the negative amount is deemed to be a capital gain in that year, even with no sale canada.ca. The adjusted cost base page walks through that calculation unit by unit.
Track box 42 every year in the client file. It doesn't touch the return when the slip arrives, so it's the box most often skipped, and the error only shows up as an overstated or understated gain years later on the sale.
Which T3 boxes feed the foreign tax credit?
Four boxes link to Form T2209. Box 24 (foreign business income) goes on line 13500 and box 33 holds the tax paid on it, which goes on line 4 of Form T2209. Box 25 (foreign non business income) goes on line 12100 and on line 43300 of Form T2209, and box 34 holds the tax paid on it, which goes on line 1 of Form T2209 canada.ca.
Boxes 24 and 25 are reported before withholding taxes canada.ca. Report the gross amount as income and claim the withheld tax as a credit. Netting the two understates income and loses the credit. The limits, including the 15% cap on tax from foreign property income, are on the foreign tax credit page.
How one fund T3 adds $3,655 to total income
Your client holds 1,000 units of a Canadian equity fund in a taxable account. The T3 shows box 21 $2,000, box 23 $500, box 25 $400, box 26 $300 of interest, box 34 $60, box 42 $250 and box 49 $1,000. The trust works out the rest: box 32 is $575 ($500 × 1.15), box 39 is $51.92 (9.0301% of $575), box 50 is $1,380 ($1,000 × 1.38) and box 51 is $207.27 (15.0198% of $1,380).
| Return entry | Calculation | Amount |
|---|---|---|
| Line 12000 | Box 32 $575 + box 50 $1,380 | $1,955.00 |
| Line 12010 | Box 32 | $575.00 |
| Line 12100 | Box 25 | $400.00 |
| Line 13000 | Box 26 $300 − box 31 $0 | $300.00 |
| Schedule 3, line 17600 | Box 21 $2,000 − box 30 $0 | $2,000.00 |
| Line 12700 | $2,000 × 50% | $1,000.00 |
| Line 40425 | Box 39 $51.92 + box 51 $207.27 | $259.19 |
| Form T2209, line 1 | Box 34 | $60.00 |
| ACB of the units | Reduced by box 42 ($0.25 a unit) | −$250.00 |
The slip adds $3,655 to total income ($1,955 + $400 + $300 + $1,000). The $1,500 of actual dividends in boxes 23 and 49 never appears on the return, and the $250 in box 42 appears only in the cost base working paper.
Sources
Do I report T3 amounts that were reinvested in more units?
Yes. The CRA considers your client to have received the amounts before reinvesting them, so the slip amounts are reported the same way canada.ca. The reinvested amount also adds to the ACB of the units, which keeps it from being taxed again on the sale.
When should my client receive the T3 slip?
Within 90 days after the trust's year end. The CRA requires T3 slips to reach the beneficiary's last known address by then canada.ca, which is March 31, 2027 for a December 31, 2026 year end. See the T3 filing deadline for the other year ends.
Where does box 48 (charitable donations) go?
On Schedule 9 of the T1, not on an income line. The CRA sends it to line 33700, 33900, 34000 or 34200 of Schedule 9 depending on the type of donation canada.ca.
Which slip edition is current?
The CRA has posted the 2026 edition of the T3 slip for trust administrators canada.ca. The box numbers on this page are the same on the 2025 and 2026 slips; as of October 2026, check the footnotes on each slip for the asterisked boxes (21, 26, 30, 42, 45, 55 and 57).
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.