When getting to the end of filing my taxes, I am given a warning that there are inconsistencies, omissions, or errors in my form, and it asks if I have tax split income. In previous years, I have received income from mutual investment funds (is this what it means by tax split income and the reason for inconsistency with previous returns?). Anyway the account was terminated and I did not receive any income from it in 2019. I did however receive income from a TFSA I have at that bank but I thought I didn’t have to report that. I’m confused.
Split income is generally income that comes from one family member (or their business) and is given to other family members in an attempt to pay less taxes. So if the Mom owns a company, and pays dividends to an adult child that has nothing to do with the company, that might be considered split income, and the adult child may have to pay additional taxes on that income. Something like a mutual fund would not be split income, and money earned in or taken from a TFSA is not taxable.
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