📘 Line 12500 – Registered Disability Savings Plan (RDSP) Income

On your Canadian tax return, Line 12500 is used to report income received from a Registered Disability Savings Plan (RDSP). This includes taxable amounts paid out to you from your RDSP, such as investment income, grants and bonds, or rollover amounts that are taxable in the year they’re received. RDSP issuers report this income in box 131 of your T4A slip.

📥 What Counts as RDSP Income?

Amounts you receive from an RDSP are generally taxable to you when paid out — this includes:

  • Proceeds from government contributions like the Canada Disability Savings Grant and Bond.
  • Investment income earned inside the plan.
  • Rollover amounts and other taxable portions reported on your T4A slip.

However, RDSP contributions themselves are not deductible and are not reported as income when contributed — only the taxable portion paid out is included on your return.

📍 Where to Enter the Amount

To complete your return, enter the total amount shown in box 131 of your T4A slips on Line 12500 of your federal tax form.

📊 Impact on Other Benefits and Credits

Even though RDSP income is included on your tax return, it’s excluded when calculating several income-tested benefits and credits, such as:

  • GST/HST credit;
  • Canada child benefit (CCB) payments;
  • Social benefit repayment (Line 23500);
  • Refundable medical expense supplement (Line 45200);
  • Canada workers benefit (Line 45300).

This means RDSP income may be reported as income for tax purposes but does not reduce eligibility for these credits.

💡 Tips and Practical Notes

  • ✔ Make sure you receive a T4A slip showing box 131 for every RDSP payment you received during the year.
  • ✔ Keep documentation for RDSP withdrawals — RDSP guides like RC4460, Registered Disability Savings Plan provide details on what’s taxable.
  • ✔ If you repaid an RDSP amount previously reported as income (e.g., you returned an amount you were not entitled to), you may be able to claim a deduction on your tax return. (Consult CRA guidance on repayment rules.)

For more on the RDSP program, including rules for grants and bonds, see CRA’s general RDSP information.