How can I report statement of investment income in Canda?

My wife and I have a joint account and we have received our T5 slip. FYI, I have a job but she does not. Can she can claim the whole interest income? Is it a wise choice? Your answers are very much appreciated.

Thanks taxgal2007 for your response, It is a joint account as the code on box 23 shows. It is also addressed to Mr. John Doe Mrs John doe. The interest belongs to both of us , however, I have heard that usually the person with lower income can claim all the income , which leads to tax saving?

Hi David, I can easily answer your question, but I would need just a tad more information about the T5 slip.

Firstly, whose social insurance appears on the slip? Yours or hers?

Secondly, does the slip read:
1. Mr. and Mrs. John Doe
2. Mr. or Mrs. John Doe
3. Mr. John Doe
Mrs. Jane Doe

(In the last example, neither the words "AND" nor "OR" appear, your names are simply listed one before the other).

I am sure that the "coding" on the slip would indicate joint (there are reporting codes on these slips), the real question here is who does the interest really belong to?

ADDITIONAL INFORMATION @ 12:03 AM

Hi again David, I just saw your new information about this T5 slip, thank you.

Here is what generally happens:

The way the bank account was set up, being joint, but with the omission of the word "AND" means that either one of you has access to the funds in that bank account to which the T5 is attached. It appears that the bank account requires EITHER one of you to conduct transactions on this particular account, not BOTH of you.

This being the case, it is virtually impossible for CRA to determine how much of that money is really yours, or was contributed by either one of you, since you both have access to the funds. Furthermore, there is no way to determine what share of the interest belongs to either one of you.

The simplest reporting method for taxation purposes is for you to report the entire amount of the slip on your 2006 tax return, since it is your SIN that appears on the slip, rather than your wife's.

When CRA later does the matching process to verify whether you have reported all of your information slips, eg., T4's, T5's, etc., all of the data in CRA's records matches EXACTLY on your SIN.

Since your wife clearly has full access to the funds, there is no reason that she wouldn't be able to report this slip on her tax return in its entirety.

Now, if your wife reports the entire amount of that T5 slip on her 2006 tax return, naturally CRA will be looking for the slip later on the matching process that is on YOUR SIN, rather than on hers.

CRA will eventually put 2 and 2 together, and realize that the T5 was reported in full by your wife.

Of course, the third option here is to split the interest 50/50 for reporting purposes, which is also perfectly acceptable to CRA.

You didn't indicate how much interest is involved, and whether or not your wife may have other types of income, such as UCCB, etc, so I can't give you a definite answer at this point what the best reporting is, I can just provide you with options.

I hope this information helps you.

In Canada?Probably it would be split 50/50 but check with your accountant or tax return clerk.
If only your SIN number is on the slip than you would have to claim all of the interest income.