Glossary term
Non-eligible dividend
A non-eligible dividend is a Canadian taxable dividend category where the cash dividend is grossed up using non-eligible dividend rules before dividend tax credits are applied.
Plain meaning
What non-eligible dividend means
Non-eligible dividends are sometimes called other-than-eligible dividends in tax data. The cash dividend is grossed up to determine the taxable dividend amount, then dividend tax credits are applied. The gross-up and dividend tax credit rates differ from eligible dividends.
Formula role
How OpenBook uses it
Non-eligible dividend calculators start with the cash dividend amount, apply the non-eligible dividend gross-up to estimate the taxable dividend amount, then apply federal and provincial or territorial dividend tax credits where modelled.
The estimate depends on taxable income, province or territory, and the tax year or data set being used.
Common wording
Why the wording matters
OpenBook uses non-eligible dividend as the user-facing term. Some tax references may use other-than-eligible dividend. The term ineligible dividend is avoided unless a source uses it directly.
Primary references
These links give the official tax context behind this term.