Which form should I use for tax on split income?

by TurboTax•16• Updated 2 weeks ago

To calculate your federal tax on split income (TOSI) for a paper tax return or if using TurboTax Desktop forms mode, you’ll fill out Form T1206. You should complete this form if either of the following conditions apply to you:

You are a specified individual, you have split income in the tax year, and the income is not an excluded amount. (To learn what these terms mean, see the Form T1206), or
You claimed a reserve on Line C of the previous year’s Form T1206

More information on eligible and excluded split income amounts can be found by visiting the CRA's page.

To calculate the TOSI in TurboTax Online

Answer the initial Personal Info interview questions if you haven't already. This unlocks 2024 tax return.
From 2024 tax return, under Add to your return, enter tax on split income and select Tax on Split Income (TOSI).
Enter your details on the screens that follow.

To calculate the TOSI in TurboTax Desktop EasyStep mode

Select Find from the menu.
Enter and select Tax on Split Income, then select Go.
Enter your details on the screens that follow.

Québec split income

If you’re a Québec resident, fill out Form TP-766.3.4-V for split income received directly or through a trust or partnership. You must have lived in Canada on December 31 (or, if you were under 17 before the tax year, one of your parents must have lived in Canada during the year). The highest Québec tax rate is used to calculate the tax on split income.