A Guaranteed Investment Certificate (GIC) is an investment that promises to pay out a guaranteed rate of interest over a specific period of time. The money earned is considered interest income and fully taxable at your highest marginal tax rate.
You must report interest income earned during the year on your tax return even if you choose to roll over the interest at the end of each year. You should receive a Form T5, Statement of Investment Income, from your financial institution. If you earn less than $50 in interest in the tax year, you may not receive a tax slip, but you are still required to report the income.
For more information, please see TurboTax webpage: Reporting Income from Guaranteed Investment Certificates
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Yes, interest earned on a GIC is considered investment income and is taxable. Report investment income you earn from your GIC on Line 12100 – Bank accounts, term deposits, guaranteed investment certificates (GICs), and other simi... of your Tax Information and Benefit Return even if you do not receive a T5 tax slip.
You must report interest income earned during the year on your tax return even if you choose to roll over the interest at the end of each year. You should receive a Form T5, Statement of Investment Income, from your financial institution. If you earn less than $50 in interest in the tax year, you may not receive a tax slip, but you are still required to report the income.
For more information, please visit TurboTax FAQs page: Reporting Income from Guaranteed Investment Certificates
Thank you for choosing Turbotax.