General Income Tax and Benefit Guide - 2016 - Federal tax and credits (Schedule 1)

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Step 5 – Federal tax and provincial or territorial tax

Calculation of federal tax (Schedule 1)

To calculate your federal tax, follow the instructions in this section to complete Schedule 1, Federal Tax.

Minimum tax

Minimum tax limits the tax advantage you can receive in a year from certain incentives. You have to pay minimum tax if it is more than the federal tax you calculate in the usual manner. When calculating your taxable income for this tax, which does not apply to a person who died in 2016, you are allowed a basic exemption of $40,000.

To find out if you have to pay this tax, add the amounts shown in B later in this section and 60% of the amount on line 127 of your return. If the total is $40,000 or less, you probably do not have to pay minimum tax. If the total is more than $40,000, you may have to pay it.

Use Form T691, Alternative Minimum Tax, to find out if you have to pay minimum tax. You also have to complete Form 428 to calculate additional provincial or territorial tax for minimum tax purposes.

Here is a list of the most common situations where you may have to pay minimum tax:

  1. You reported a taxable capital gain on line 127 of your return.
  2. You claimed any of the following on your return:
    • a loss (including your share of a partnership loss) resulting from, or increased by, claiming capital cost allowance on rental properties;
    • a loss from a limited partnership that is a tax shelter;
    • most carrying charges (line 221) on certain investments;
    • a loss from resource properties resulting from, or increased by, claiming a depletion allowance, exploration expenses, development expenses, or Canadian oil and gas property expenses;
    • a deduction on line 248 for an employee home relocation loan; or
    • a deduction on line 249 for security options.
  3. You claimed any of the following tax credits on Schedule 1:
    • a federal political contribution tax credit on lines 409 and 410;
    • an investment tax credit on line 412;
    • a labour sponsored funds tax credit on lines 414 and 419; or
    • a federal dividend tax credit on line 425.
Example

Paul claimed a $50,000 deduction in 2016 for carrying charges. Because this deduction is more than $40,000, Paul may have to pay minimum tax. To find out, he should complete Form T691, Alternative Minimum Tax.

Tax Tip

You may be able to claim a credit against your taxes for 2016 if you paid minimum tax on any of your returns for 2009 to 2015. See line 427.

Step 1 of Schedule 1 – Federal non-refundable tax credits

These credits reduce your federal tax owing. However, if the total of these credits is more than your federal tax owing, you will not get a refund for the difference.

Newcomers to Canada and emigrants

If you became or ceased to be a resident of Canada for income tax purposes during 2016, enter the date of your move in the "Information about your residence" area on page 1 of your return. You may have to reduce your claim for the amounts on lines 300, 301, 303, 305, 367, 306, 315, 316, 318, 324, and 326. For more information, see Pamphlet T4055, Newcomers to Canada, or go to Leaving Canada (emigrants).

Amounts for non-resident dependants

You may be able to claim an amount for certain dependants who live outside Canada if they depended on you for support.

If the dependants already have enough income or assistance for a reasonable standard of living in the country where they live, we do not consider them to depend on you for support. Gifts are not support.

Supporting documents – If you are filing electronically, keep all your documents (proof of your payment of support) in case we ask to see them later. If you are filing a paper return, attach your documents. Proof of payment must show your name, the amount and the date of the payment, and the dependant's name and address. If you sent the funds to a guardian, the guardian's name and address must also show on the proof of payment.

Family caregiver amount (FCA)

If you have a dependant with an impairment in physical or mental functions, you may be eligible to claim an amount on line 367 or an additional $2,121 for one or more of the following amounts:

  • spouse or common-law partner amount (line 303);
  • amount for an eligible dependant (line 305); and
  • caregiver amount (line 315).

Note

The maximum amount for infirm dependants age 18 or older (line 306) includes the additional $2,121 for the FCA.

The dependant with the impairment must be:

  • a person 18 years of age or older and dependent on you because of an impairment in physical or mental functions; or
  • a child under 18 years of age, with an impairment in physical or mental functions. The impairment must be prolonged and indefinite and the child must be dependent on you for assistance in attending to personal needs and care when compared to children of the same age.

The CRA may ask for a signed statement from a medical practitioner showing when the impairment began and what the duration of the impairment is expected to be. For children under 18 years of age, the statement should also show that the child, because of impairment in physical or mental functions, is, and will continue to be, dependent on others for an indefinite duration. This dependence means they need much more assistance for their personal needs and care compared to children of the same age. You do not need a signed statement from a medical practitioner if the CRA already has an approved Form T2201, Disability Tax Credit Certificate, for a specified period.

You may be able to claim the FCA for more than one eligible dependant.

triangle: for retired seniors Line 300 – Basic personal amount

Claim $11,474.

triangle: for retired seniors Line 301 – Age amount

Claim this amount if you were 65 years of age or older on December 31, 2016, and your net income (line 236 of your return) is less than $83,427.

If your net income was:

  • $35,927 or less, claim $7,125 on line 301; or
  • more than $35,927 but less than $83,427, complete the chart for line 301 on the federal worksheet to calculate your claim.

Tax Tip

You may be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount. See line 326.

triangle: for retired seniors Line 303 – Spouse or common-law partner amount

Claim this amount if at any time in the year you supported your spouse or common-law partner and his or her net income (line 236 of his or her return, or the amount it would be if he or she filed a return) was less than $11,474 ($13,595 if he or she is eligible for the family caregiver amount). Complete the appropriate part of Schedule 5 to calculate your claim and attach a copy to your return.

In certain situations, your spouse's or common-law partner's net income must be stated even if your marital status has changed. See Net income of spouse or common-law partner. Both of you cannot claim this amount for each other for the same year.

If you had to make support payments to your current or former spouse or common-law partner and you were separated for only part of 2016 because of a breakdown in your relationship, you have a choice. You can claim the deductible support amounts paid in the year to your spouse or common-law partner on line 220 or an amount on line 303 for your spouse or common-law partner, whichever is better for you. If you reconciled with your spouse or common-law partner before the end of 2016, you can claim an amount on line 303 and any allowable amounts on line 326.

 Net income of spouse or common-law partner

This is the amount on line 236 of your spouse's or common-law partner's return, or the amount it would be if he or she filed a return.

If you were living with your spouse or common-law partner on December 31, 2016, use his or her net income for the whole year. This applies even if you got married or got back together with your spouse in 2016 or you became a common-law partner or started to live with your common-law partner again.

If you separated in 2016 because of a breakdown in your relationship and were not back together on December 31, 2016, reduce your claim only by your spouse's or common-law partner's net income before the separation. In all cases, enter in the "Information about your spouse or common-law partner" area on page 1 of your return the amount you use to calculate your claim, even if it is zero.

Tax Tip

If you cannot claim the amount on line 303 (or you have to reduce your claim) because of dividends your spouse or common-law partner received from taxable Canadian corporations, you may be able to reduce your tax if you report all of your spouse's or common-law partner's dividends. See line 120.

Line 305 – Amount for an eligible dependant

If you have claimed an amount for the year on line 303, you cannot claim this amount. If you have not claimed an amount for the year on line 303, you may be able to claim this amount for one other person if at any time in the year you met all the following conditions at once:

  • You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
  • You supported a dependant in 2016.
  • You lived with the dependant (in most cases in Canada) in a home you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant must also have been either:

  • your parent or grandparent by blood, marriage, common-law partnership, or adoption; or
  • your child, grandchild, brother, or sister by blood, marriage, common-law partnership, or adoption and under 18 years of age or had an impairment in physical or mental functions.

Notes

Your dependant may live away from home while attending school. If the dependant ordinarily lived with you when not in school, we consider that dependant to live with you for the purposes of this amount.

For the purposes of this claim, your child is not required to have lived in Canada but still must have lived with you. This would be possible, for example, if you were a deemed resident (as defined under E and F) living in another country with your child.

Even if all the preceding conditions have been met, you cannot claim this amount if any of the following applies:

  • You or someone else is claiming a spouse or common-law partner amount (line 303) for this dependant.
  • The person for whom you want to claim this amount is your common-law partner. However, you may be able to claim the amount on line 303.
  • Someone else in your household is making this claim. Each household is allowed only one claim for this amount, even if there is more than one dependant in the household.
  • The claim is for a child for whom you had to make support payments for 2016. However, if you were separated from your spouse or common-law partner for only part of 2016 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 305 (plus any allowable amounts on lines 315 and 318) if you do not claim any support amounts paid to your spouse or common-law partner on line 220. You can claim whichever is better for you.

Note

If you and another person had to make support payments for the child for 2016 and, as a result, no one would be entitled to claim the amount for an eligible dependant for the child, you can claim this amount if you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, neither of you can make the claim. For more information, see Guide P102, Support Payments.

How to claim this amount

You can claim this amount if your dependant's net income (line 236 of his or her return, or the amount it would be if he or she filed a return) was less than $11,474 ($13,595 if he or she is eligible for the family caregiver amount). Complete the appropriate part of Schedule 5 to calculate your claim and give certain details about your dependant. Attach a copy of this schedule to your paper return.

Notes

If you were a single parent on December 31, 2016, and you choose to include all universal child care benefit (UCCB) amounts you received in 2016 in the income of your dependant, include this amount in the calculation of his or her net income.

You cannot split this amount with another person. Once you claim this amount for a dependant, no one else can claim this amount or an amount on line 306 for that dependant.

If you and another person can both claim this amount for the same dependant (such as shared custody of a child) but cannot agree who will claim the amount, neither of you can make the claim.

Lines 352 and 367 – Family caregiver amount for infirm children under 18 years of age

You can claim an amount for each of your or your spouse’s or common-law partner’s children who:

  • are under 18 years of age at the end of the year;
  • lived with both of you throughout the year; and
  • have an impairment in physical or mental functions. For more information, see Family caregiver amount (FCA).

The full amount can be claimed in the year of the child’s birth, death, or adoption.

Notes

If you are making this claim for more than one child, either you or your spouse or common-law partner may claim the credit for all the eligible children or you can each claim separate children but each child can only be claimed once.

If you have shared custody of the child throughout the year, the parent who claims the amount for an eligible dependant (see line 305) for that child can make the claim on line 367. If you have shared custody of the child throughout the year but cannot agree who will claim the amount, neither of you can make this claim.

If the child did not live with both parents throughout the year, the parent or the spouse or common-law partner who claims the amount for an eligible dependant (see line 305) for that child can make the claim.

If you and another person had to make support payments for the child in 2016 and, as a result, no one would be entitled to claim this amount or the amount for an eligible dependant for the child, you can claim this amount if you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, no one can make the claim for that child.

How to claim this amount

Enter the number of children for whom you are claiming the family caregiver amount on line 352 (beside and to the left of line 367). Claim the result of the calculation on line 367.

Tax Tip

You may be able to transfer all or part of this amount to your spouse or common-law partner or to claim all or part of his or her amount. See line 326.

Line 306 – Amount for infirm dependants age 18 or older

You can claim an amount up to a maximum of $6,788 which includes the $2,121 family caregiver amount for each of your or your spouse’s or common‑law partner’s dependent children or grandchildren only if that person had an impairment in physical or mental functions and was born in 1998 or earlier.

You can also claim an amount for more than one person if each one meets all the following conditions. The person must have been:

  • your or your spouse's or common-law partner's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
  • born in 1998 or earlier and had an impairment in physical or mental functions;
  • dependent on you, or on you and others, for support; and
  • a resident of Canada at any time in the year. You cannot claim this amount for a person who was only visiting you.

Notes

A parent includes someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age.

A child can include someone older than you who has become completely dependent on you for support and over whom you have custody and control.

If anyone (including you) can claim an amount on line 305 or on line 315 for the dependant being claimed, you cannot claim an amount on line 306 for that dependant.

You can claim an amount only if the dependant's net income (line 236 of his or her return, or the amount it would be if he or she filed a return) is less than $13,595 (this includes the $2,121 family caregiver amount).

If you had to make support payments for a child, you cannot claim an amount on line 306 for that child. However, if you were separated from your spouse or common-law partner for only part of 2016 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 306 if you do not claim any support amounts paid to your spouse or common-law partner on line 220. You can claim whichever is better for you.

How to claim this amount

For each of your dependants, calculate his or her net income (line 236 of his or her return, or the amount it would be if he or she filed a return). Complete the appropriate part of Schedule 5 to calculate your claim and give certain details about each of your dependants. Attach a copy of this schedule to your paper return.

The CRA may ask for a signed statement from a medical practitioner showing the nature of the impairment, when the impairment began, what the duration of the impairment is expected to be, and that because of an impairment in physical or mental functions, the person is, and will continue to be, dependent on others.

Claims made by more than one person – If you and another person support the same dependant, you can split the claim for that dependant. However, the total amount of your claim and the other person's claim cannot exceed the maximum amount allowed for that dependant.

Line 308 – CPP or QPP contributions through employment

Claim, in dollars and cents, the total of the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions shown in boxes 16 and 17 of your T4 slips.

If you were a resident of a province other than Quebec on December 31, 2016, and contributed only to the CPP, do not claim more than $2,544.30 on line 308. If you contributed more, claim the overpayment on line 448 of your return. We will refund this overpayment to you or use it to reduce your balance owing.

If you were a resident of Quebec on December 31, 2016, and contributed only to the QPP, do not claim more than $2,737.05 on line 308. If you contributed more, claim the overpayment on your provincial income tax return for Quebec.

If you contributed to the QPP in 2016 but resided outside Quebec on December 31, 2016, or if you contributed to the CPP in 2016 but resided in Quebec on December 31, 2016, complete Form RC381, Inter-provincial calculation for CPP and QPP Contributions and Overpayments for 2016, to calculate your claim at line 308 and your overpayment, if any. Attach to your paper return your Relevé 1 slip.

Notes

Even if you contributed $2,544.30 or less to the CPP or $2,737.05 or less to the QPP, you may have an overpayment because your claim must be prorated in certain situations, such as if in 2016:

  •  you were a CPP participant and turned 18 or 70 years of age or received a CPP disability pension;
  •  you were a QPP participant and turned 18 years of age or received a QPP disability pension;
  •  you were a CPP working beneficiary and elected to stop paying CPP contributions or revoked an election made in a previous year; or
  • you are filing a return for a person who died in 2016.

If you started receiving CPP retirement benefits in 2016, your basic exemption may be prorated by the CRA.

If one of these situations applies to you, complete Schedule 8 or Form RC381, whichever applies.

If you contributed to a foreign employer sponsored pension plan or to a social security arrangement (other than a United States Arrangement), see Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2016 – Non-United States Plans or Arrangements. You can get this form by going to Forms and publications, or by contacting the CRA .

CPP working beneficiaries

If you are 60 to 70 years of age and employed or self-employed and you are receiving a CPP or QPP retirement pension, you must make contributions to the CPP or the QPP.

However, if you are at least 65 years of age but under 70, you can elect to stop contributing to the CPP or revoke a prior-year election:

Note

If you did not complete and submit Form CPT30 for 2016 when you became employed, you cannot elect to stop paying CPP contributions or revoke an election made in a prior year on your self-employment earnings for 2016 on Schedule 8 or Form RC381.

Request for refund of CPP contributions

Under the Canada Pension Plan, you must ask for a refund of CPP over-contributions within four years after the end of the year for which the request is being made. See line 448.

Making additional CPP contributions

You may not have contributed to the CPP for certain income you earned through employment or you may have contributed less than required. This can happen if any of the following apply:

  • You had more than one employer in 2016.
  • You had income, such as tips, from which your employer did not have to withhold contributions.
  • You were in a type of employment not covered under CPP rules, such as casual employment.

Generally, if the total of your CPP and QPP contributions through employment, as shown in boxes 16 and 17 of your T4 slips, is less than $2,544.30, you can contribute 9.9% on any part of the income on which you have not already made contributions. The maximum income for 2016 on which you can contribute to the CPP is $54,900.

To calculate and make additional CPP contributions for 2016, complete Form CPT20, Election to Pay Canada Pension Plan Contributions, and Schedule 8 or Form RC381, Inter-provincial calculation for CPP and QPP contributions and overpayments for 2016, whichever applies, and claim the appropriate amounts on lines 222 and 310. Form CPT20 lists the eligible employment income on which you can make additional CPP contributions. If you were not a resident of Quebec on December 31, 2016 and contributed only to the CPP, or if you were a resident of Quebec on December 31, 2016 and contributed only to the QPP, you must complete Schedule 8 to calculate your claim. Otherwise, complete Form RC381 to calculate your claim.

Supporting documents – Attach a copy of Form CPT20 and Schedule 8 or Form RC381, whichever applies, to your paper return, or send Form CPT20 to the CRA separately on or before June 15, 2018.

Tax‑exempt employment income earned by a registered Indian or person entitled to be registered under the Indian Act – If you are a registered Indian, or person entitled to be registered under the Indian Act, with tax‑exempt employment income and there is no amount shown in box 16 or 17 of your T4 slips, you may also be able to contribute to the CPP on this income. For more benefit and tax information for aboriginal peoples go to Aboriginal peoples.

Line 310 – CPP or QPP contributions on self-employment and other earnings

Claim, in dollars and cents, the same amount you claimed on line 222 of your return.

Line 312 – Employment insurance premiums through employment

If you were not a resident of Quebec on December 31, 2016, claim, in dollars and cents, the total of the amounts shown in box 18 of all your T4 slips. If you contributed to a provincial parental insurance plan (PPIP) in 2016, also include the total of the amounts shown in box 55 of all your T4 slips on this line. Do not claim more than $955.04. Attach to your paper return the Relevé 1 slip your employer sent you.

If you contributed more than $955.04, claim, in dollars and cents, the excess contribution on line 450 of your return. We will refund this overpayment to you or use it to reduce your balance owing.

If you were a resident of Quebec on December 31, 2016, and worked only in Quebec during the year, claim, in dollars and cents, the total of the amounts shown in box 18 of all your T4 slips. Do not claim more than $772.16. If you contributed more than $772.16, claim, in dollars and cents, the excess contribution on line 450 of your return. We will refund this overpayment to you or use it to reduce your balance owing.

If during the year you were a resident of Quebec, you worked outside Quebec, and your employment income is $2,000 or more, you must complete Schedule 10 and attach it to your paper return. Claim on this line, in dollars and cents, the lesser of your EI premiums from line 22 and line 23 of Schedule 10.

Insurable earnings

This is the total of all earnings on which you pay EI premiums. These amounts are shown in box 24 of your T4 slips for 2016 (or box 14 if box 24 is blank).

You may have an overpayment of your premiums even if the total is $955.04 or less (if you were not a resident of Quebec), or $772.16 or less if you were a resident of Quebec. This can happen when your insurable earnings are less than the total of all amounts shown in box 14 of all your T4 slips. You can calculate your overpayment using Form T2204, Employee Overpayment of 2016 Employment Insurance Premiums. If you were a resident of Quebec and had to complete Schedule 10 because you worked outside Quebec, do not use Form T2204. Calculate the overpayment by completing Part C of Schedule 10.

If your insurable earnings are $2,000 or less, we will refund all your premiums to you or use them to reduce your balance owing. In this case, do not enter any premiums on this line. Instead, enter the total on line 450 of your return.

You may also have an overpayment if your insurable earnings are more than $2,000 and less than $2,038 if you resided outside Quebec on December 31, 2016, or if your insurable earnings are more than $2,000 and less than $2,030 if you were a resident of Quebec on December 31, 2016. Calculate your overpayment using Form T2204.

Request for refund of EI contributions

Under the Employment Insurance Act, you must ask for a refund of EI overpayment within three years after the end of the year for which the request is being made.

Line 317 – Employment insurance premiums on self-employment and other eligible earnings

If you were self-employed, you can choose to pay EI premiums to be eligible to receive EI special benefits.

For more information, contact Service Canada.

If you have entered into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the EI program for access to EI special benefits, you must complete Schedule 13, Employment Insurance Premiums on Self-Employment and Other Eligible Earnings, to calculate your premiums payable. Claim the amount from line 10 of your Schedule 13 on line 317 of your Schedule 1 and on line 430 of your return.

Line 375 – Provincial parental insurance plan (PPIP) premiums paid

If you were a resident of Quebec on December 31, 2016, and worked in Quebec during the year, claim, in dollars and cents, the total of the amounts shown in box 55 of your T4 slips. The maximum you can claim is $391.82. Claim any overpayment on your provincial income tax return for Quebec.

If your PPIP insurable earnings are less than $2,000, do not claim any PPIP premiums on this line. Instead, claim this amount as an overpayment on your provincial income tax return for Quebec.

Line 376 – PPIP premiums payable on employment income

If you were a resident of Quebec on December 31, 2016, claim, in dollars and cents, the amount from line 19 of Schedule 10 if the following two conditions apply:

  • Your employment income (including employment income from outside Canada) is $2,000 or more.
  • One of your T4 slips has a province of employment other than Quebec in box 10.

The maximum amount you can claim is $391.82.

Line 378 – PPIP premiums payable on self-employment income

If you were a resident of Quebec on December 31, 2016, claim, in dollars and cents, the amount from line 12 of Schedule 10.

The maximum amount you can claim is $391.82.

Line 362 – Volunteer firefighters' amount (VFA) and
Line 395 – Search and rescue volunteers' amount (SRVA)

You can claim $3,000 for the VFA or the SRVA (but not both) if you meet the following conditions:

  • you were a volunteer firefighter or a search and rescue volunteer during the year; and
  • you completed at least 200 hours of eligible volunteer firefighting services or eligible search and rescue volunteer services in the year.

Note

The hours volunteered for both search and rescue and firefighter activities can be combined to claim either the VFA or the SRVA. You cannot claim both.

However, if you provided services to the same organization, other than as a volunteer, for the same or similar duties, you cannot include any hours related to that organization in determining if you have met the 200-hour threshold.

Eligible volunteer firefighting services with a fire department include:

  • responding to and being on call for firefighting and related emergency calls as a firefighter;
  • attending meetings held by the fire department; and
  • participating in required training related to preventing or suppressing fire.

Eligible search and rescue volunteer services with an eligible search and rescue organization include:

  • responding to and being on call for search and rescue and related emergency calls as a search and rescue volunteer;
  • attending meetings held by the organization; and
  • participating in required training related to search and rescue services.

An eligible organization is a search and rescue organization that is a member of the Search and Rescue Volunteer Association of Canada, the Civil Air Search and Rescue Association, or the Canadian Coast Guard Auxiliary, or whose status as a search and rescue organization is recognized by a provincial, municipal, or public authority. Your search and rescue organization can tell you if it is eligible.

Tax Tip

As a volunteer firefighter or search and rescue volunteer, you may be eligible to claim a $1,000 exemption instead of the VFA or the SRVA. For more information, see Emergency services volunteers.

Supporting documents – Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later. We may ask you to provide certification from the fire department or the search and rescue organization to confirm the number of hours of eligible volunteer firefighting or search and rescue volunteer services you performed.

Line 363 – Canada employment amount

Claim the lesser of:

  • $1,161; and
  • the total of the employment income you reported on lines 101 and 104 of your return.
Line 364 – Public transit amount

You can claim the cost of monthly public transit passes or passes of longer duration such as an annual pass for travel on public transit for 2016. These passes must allow unlimited travel on local buses, streetcars, subways, commuter trains or buses, or local ferries within Canada.

You can also claim the cost of short-term passes if each pass entitles you to unlimited travel for at least 5 consecutive days and you buy enough of these passes for unlimited travel for at least 20 days in any 28-day period.

You can claim the cost of electronic payment cards when you use them to make at least 32 one-way trips over a maximum of 31 consecutive days.

Note

The amount claimed is based on the eligible portion of the cost related to the use of commuter public transit services in 2016.

Only you or your spouse or common-law partner can claim the cost of transit passes (if these amounts have not already been claimed) for:

  • yourself;
  • your spouse or common-law partner; and
  • your or your spouse's or common-law partner's children who were under 19 years of age on December 31, 2016.

Reimbursement of an eligible expense – You can claim only the part of the amount for which you have not been or will not be reimbursed. However, you can claim the full amount if the reimbursement is reported as income (such as a benefit shown on a T4 slip) and you did not deduct the reimbursement anywhere else on your return.

Supporting documents – Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later.

Line 370 – Children's arts amount

New You can claim up to a maximum of $250 per child, for eligible fees paid in 2016 relating to the cost of registration or membership for your or your spouse's or common-law partner's child in a prescribed program of artistic, cultural, recreational, or developmental activity. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit at line 316) at the beginning of the year in which an eligible arts expense was paid.

You can claim this amount if another person has not already claimed the same fees and the total claimed is not more than the maximum allowable amount if only one of you were making the claim.

Children with disabilities – If the child is eligible for the disability tax credit and is under 18 years of age at the beginning of the year, you can claim an additional $500 if a minimum of $100 is paid for registration or membership fees for a prescribed artistic program described below.

Notes

Eligible expenses do not include amounts that can be claimed as the federal children's fitness tax credit (line 459 of your return) or as a deduction by any person, such as the child care expenses deduction (line 214 of your return) or amounts that any person has claimed as a tax credit.

Programs that are part of a school curriculum are not eligible.

If an organization provides your child with two distinct prescribed programs and one program is eligible for the children's arts amount and the other program is eligible for the children's fitness tax credit, you should receive two receipts. If you receive only one receipt, it must clearly show the amount paid to the organization for each distinct program.

Prescribed program

To qualify for this amount, a program must:

  • be ongoing (last at least eight consecutive weeks, or in the case of children's camps, five consecutive days);
  • be supervised; and
  • be suitable for children.

The program also has to meet at least one of the following criteria:

  • it contributes to the development of creative skills or expertise in an artistic or cultural activity;
  • it provides a substantial focus on wilderness and the natural environment;
  • it helps children develop and use particular intellectual skills;
  • it includes structured interaction between children where supervisors teach or help children develop interpersonal skills; or
  • it provides enrichment or tutoring in academic subjects.
Note

An activity that develops creative skills or expertise is eligible only if it is intended to improve a child’s dexterity or co-ordination or helps in acquiring and applying knowledge through artistic or cultural activities such as literary arts, visual arts, performing arts, music, media, languages, customs, and heritage.

Reimbursement of an eligible expense – You can claim only the part of the amount for which you have not been or will not be reimbursed. However, you can claim the full amount if the reimbursement is reported as income (such as a benefit shown on a T4 slip) and you did not deduct the reimbursement anywhere else on your return.

Supporting documents – Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later.

New Line 398 – Home accessibility expenses

You can claim an amount for eligible expenses for a qualifying renovation of an eligible dwelling, if you are a qualifying individual or an eligible individual making a claim for a qualifying individual.

The total eligible expenses for an eligible dwelling cannot be more than $10,000 for the year.

The total eligible expenses claimed by a qualifying individual and all eligible individuals for a year cannot be more than $10,000 for:

  • a qualifying individual; or
  • the same eligible dwelling even if there is more than one qualifying individual.

If you cannot agree on what amount each person can claim, the CRA will determine the amounts.

A qualifying individual is an individual who is eligible for the disability tax credit for the year, or an individual who is 65 years of age or older at the end of a year.

An eligible individual is:

  1. a spouse or common-law partner of a qualifying individual; or
  2. for a qualifying individual who is 65 years of age or older, an individual who has claimed the amount for an eligible dependant (line 305), caregiver amount (line 315) or amount for infirm dependants age 18 or older (line 306) for the qualifying individual, or could have claimed such an amount if:
    • the qualifying individual had no income;
    • for the eligible dependant amount, the individual was not married or in a common-law partnership; and
    • for the amount for an infirm dependant age 18 or older, the qualifying individual was dependent on the individual because of mental or physical infirmity.
      OR
  3. If b. does not apply, an individual who is entitled to claim the disability amount for the qualifying individual or would be entitled if no amount was claimed for the year by the qualifying individual or the qualifying individual’s spouse or common-law partner.

An eligible dwelling is a housing unit (or a share of the capital stock of a co-operative housing corporation that was acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation) located in Canada and meets at least one of the following conditions:

  • it is owned (either jointly or otherwise) by the qualifying individual and it is ordinarily inhabited (or is expected to be ordinarily inhabited) in the year by the qualifying individual, or
  • it is owned (either jointly or otherwise) by the eligible individual and is ordinarily inhabited (or is expected to be ordinarily inhabited) in the year by the eligible individual and the qualifying individual, and the qualifying individual does not throughout the year own (either jointly or otherwise) and ordinarily inhabit another housing unit in Canada.

    Note

    Generally, the land on which the housing unit stands, up to ½ hectare (1.24 acres), will be considered part of the eligible dwelling.

A qualifying individual may have only one eligible dwelling at any time, but may have more than one eligible dwelling in a year (for example, in a situation where an individual moves in the year). When a qualifying individual has more than one eligible dwelling in a year, the total eligible expenses for all such eligible dwellings of the qualifying individual cannot be more than $10,000.

A qualifying renovation is a renovation or alteration that is of an enduring nature and is integral to the eligible dwelling (including the land that forms part of the eligible dwelling). The renovation must:

  • allow the qualifying individual to gain access to, or to be mobile or functional within, the dwelling; or
  • reduce the risk of harm to the qualifying individual within the dwelling or in gaining access to the dwelling.

An item you buy that will not become a permanent part of your dwelling is generally not eligible.

Eligible expenses

These expenses are outlays or expenses made or incurred during the year that are directly attributable to a qualifying renovation of an eligible dwelling. The expenses must be for work performed and/or goods acquired in the tax year.

If you do the work yourself, the eligible expenses include expenses for building materials, fixtures, equipment rentals, building plans, and permits. However, the value of your labour or tools cannot be claimed as eligible expenses.

Expenses are not eligible if the goods or services are provided by a person related to the qualifying individual or the eligible individual, unless that person is registered for goods and services tax/harmonized sales tax (GST/HST) under the Excise Tax Act. If your family member is registered for GST/HST and if all other conditions are met, the expenses will be eligible for the home accessibility tax credit (HATC).

Generally, paid work done by professionals such as electricians, plumbers, carpenters and architects for eligible expenses qualifies as eligible expenses.

You may have an eligible expense that also qualifies as a medical expense. If so, you can claim the expense as a medical expense and a home accessibility expense. For information about medical expenses see lines 330 and 331.

Ineligible expenses

The following expenses will not be eligible for the HATC:

  • amounts paid to acquire a property that can be used independently of the qualifying renovation;
  • the cost of annual, recurring, or routine repair or maintenance;
  • amount paid to buy household appliances;
  • amount paid to buy electronic home-entertainment devices;
  • the cost of housekeeping, security monitoring, gardening, outdoor maintenance, or similar services;
  • financing costs for the qualifying renovation; and
  • the cost of renovation incurred mainly to increase or maintain the value of the dwelling.
Condominium and co-operative housing corporations

For condominium or co-operative housing corporations, your share of the cost of eligible expenses for common areas qualifies for the HATC.

Other government grants or credits

The HATC is not reduced by assistance from the federal or a provincial/territorial government, including a grant, forgivable loan, or tax credit.

Vendor rebates or incentives

Eligible expenses are generally not reduced by reasonable rebates or incentives offered by the vendor or manufacturer of goods or the provider of the service.

Business and/or rental use of part of an eligible dwelling

If you earn business or rental income from part of an eligible dwelling, you can only claim the amount for eligible expenses incurred for the personal-use areas of your dwelling.

For expenses incurred and/or goods acquired for common areas or that benefit the housing unit as a whole (such as a ramp or hand rails), you must divide the expense between personal use and income-earning use. For more information, see Guide T4002, Business and Professional Income or Guide T4036, Rental Income.

Eligible expenses must be supported by acceptable documentation, such as agreements, invoices, and receipts. They must clearly identify the type and quantity of goods bought or services provided, including, but not limited to, the following information, as applicable:

  • information that clearly identifies the vendor/contractor, their business address, and, if applicable, their GST/HST registration number;
  • a description of the goods and the date when they were bought;
  • the date when the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed;
  • a description of the work done, including the address where it was done;
  • the amount of the invoice;
  • proof of payment. Receipts or invoices must show that bills were paid in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque; and
  • a statement from a co-operative housing corporation or condominium corporation (or, for civil law, a syndicate of co-owners) signed by an authorized individual identifying:
    • the amounts incurred for the renovation or the alteration work;
    • as a condominium owner, your part of these expenses if the work is done for common areas;
    • information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number; and
    • a description of the work done or services performed and the dates when the work was done or the services were performed.

To verify whether someone is registered for GST/HST, please consult the GST/HST Registry at Confirming a GST/HST account number.

How to claim this amount

To claim home accessibility expenses complete Schedule 12, Home Accessibility Expenses, and report the amount from line 4 of Schedule 12 on line 398 of Schedule 1, Federal Tax.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule 12 but do not send your other documents. Keep them in case we ask to see them later.

Line 369 – Home buyers' amount

You can claim $5,000 for the purchase of a qualifying home in 2016 if both of the following apply:

  • You or your spouse or common-law partner acquired a qualifying home.
  • You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

Note

You do not have to be a first-time home buyer if you are eligible for the disability tax credit or if you acquired the home for the benefit of a related person who is eligible for the disability tax credit. However, the purchase must be made to allow the person with the disability to live in a home that is more accessible or better suited to the needs of that person. For the purposes of the home buyers' amount, a person with a disability is a person who is eligible for the disability tax credit for the year in which the home is acquired.

A qualifying home must be registered in your and/or your spouse's or common-law partner's name in accordance with the applicable land registration system and it must be located in Canada. It includes existing homes and homes under construction. The following are considered qualifying homes:

  • single-family houses;
  • semi-detached houses;
  • townhouses;
  • mobile homes;
  • condominium units; and
  • apartments in duplexes, triplexes, fourplexes, or apartment buildings.

Note

A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.

You must intend to occupy the home, or you must intend that the related person with a disability occupy the home, as a principal place of residence no later than one year after it is acquired.

You and your spouse or common-law partner can split the claim, but the combined total cannot exceed $5,000.

When more than one person is entitled to the amount (for example, when two people jointly buy a home), the total of all amounts claimed cannot exceed $5,000.

Supporting documents – Do not send any supporting documents when you file your tax retuirn. Keep them in case we ask to see them later.

Line 313 – Adoption expenses

You can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The new maximum claim for each child is $15,453.

Two adoptive parents can split the amount if the total combined claim for eligible expenses for each child is not more than the amount before the split.

Parents can only claim these incurred expenses in the tax year including the end of the adoption period for the child. The adoption period:

  • begins either when an application is made for registration with a provincial or territorial ministry responsible for adoption (or with an adoption agency licensed by a provincial or territorial government) or when an application related to the adoption is made to a Canadian court, whichever is earlier; and
  • ends when an adoption order is issued by, or recognized by, a government in Canada for that child or when the child first begins to live permanently with you, whichever is later.
Eligible adoption expenses

Eligible adoption expenses you can claim are:

  • fees paid to an adoption agency licensed by a provincial or territorial government (an "adoption agency");
  • court costs and legal and administrative expenses related to an adoption order for the child;
  • reasonable and necessary travel and living expenses of the child and the adoptive parents;
  • document translation fees;
  • mandatory fees paid to a foreign institution;
  • mandatory expenses paid for the child's immigration; and
  • any other reasonable expenses related to the adoption required by a provincial or territorial government or an adoption agency licensed by a provincial or territorial government.

Reimbursement of an eligible expense – You must reduce your eligible expenses by any reimbursements or other forms of assistance you received.

Supporting documents – Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later.

Line 314 – Pension income amount

You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on lines 115, 116, and/or 129 of your return.

Report your pension or annuity income on the applicable line. To calculate your claim, complete the chart for line 314 on the federal worksheet.

If you and your spouse or common-law partner elected to split pension income, follow the instructions at Step 4 on Form T1032, Joint Election to Split Pension Income, to calculate the amount to enter on line 314 of your and your spouse's or common-law partner's Schedule 1.

Note

Amounts such as old age security benefits, Canada Pension Plan benefits, Quebec Pension Plan benefits, death benefits, retiring allowances, excess amounts from a RRIF transferred to an RRSP, another RRIF, or an annuity, amounts shown in boxes 18, 20, 22, 26, 28, and 34 of your T4RSP slips, and amounts distributed from a retirement compensation arrangement shown on your T4A-RCA slips do not qualify.

Tax Tip

You may be able to transfer all or part of your pension income amount to your spouse or common-law partner or to claim all or part of his or her pension income amount. See line 326.

Line 315 – Caregiver amount

If at any time in 2016 you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,667 ($6,788 if he or she is eligible for the family caregiver amount) for each dependant.

Each dependant must have been one of the following persons:

  • your or your spouse's or common-law partner's child or grandchild; or
  • your or your spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.

In addition, each dependant must meet all the following conditions. The person must have:

  • been 18 years of age or older at the time he or she lived with you;
  • had a net income in 2016 (line 236 of his or her return, or the amount it would be if he or she filed a return) of less than $20,607 ($22,728 if he or she is eligible for the family caregiver amount); and
  • been dependent on you because of an impairment in physical or mental functions, or if he or she is your or your spouse's or common-law partner's parent or grandparent, born in 1951 or earlier.

If you had to make support payments for a child, you cannot claim an amount on line 315 for that child. However, if you were separated from your spouse or common-law partner for only part of 2016 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 315 (in addition to any allowable amounts on lines 305 and 318) if you do not claim any support amounts paid to your spouse or common-law partner on line 220. You can claim whichever is better for you.

Complete the appropriate part of Schedule 5 to calculate your claim and give certain details about each of your dependants. Attach a copy of this schedule to your paper return.

Claim made by more than one person – If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot exceed the maximum amount allowed for that dependant.

If anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 306 for that dependant. If anyone other than you claims an amount on line 305 for a dependant, you cannot claim an amount on line 315 for that dependant.

Line 316 – Disability amount (for self)

If you are eligible for the disability tax credit, you may be able to claim the disability amount.

To be eligible, you must have had a severe and prolonged impairment in physical or mental functions during 2016. An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months. You may be able to claim $8,001 if a medical practitioner certifies on Form T2201, Disability Tax Credit Certificate, that you meet certain conditions.

Note

You can send the form T2201 to us at any time during the year. Sending us your form before you file your income tax and benefit return may help avoid a delay in getting your assessment.

For more information, see Guide RC4064, Disability-Related Information or go to Tax credits and deductions for persons with disabilities. To view your disability tax credit information, go to My Account for Individuals.

Supplement for persons under 18

If you qualify for the disability amount and were under 18 years of age at the end of the year, you can claim up to an additional $4,667. However, this supplement may be reduced if in 2016 someone claimed child care expenses (on line 214) or attendant care expenses (as a medical expense on line 330 or 331) for you. It will also be reduced if you claimed attendant care expenses on line 215 or 330 for yourself.

How to claim this amount

If this is a new claim for this amount, you must submit a completed Form T2201, Disability Tax Credit Certificate, certified by a medical practitioner or your claim will be delayed. We will review your claim before we assess your return to see if you are eligible.

If you were eligible for the disability tax credit for 2015 and you still meet the eligibility requirements in 2016, you can claim this amount without sending us a new Form T2201. However, you must send us one if the previous period of approval ended before 2016 or if we ask you to.

If you were 18 years of age or older at the end of the year, claim $8,001. Otherwise, complete the chart for line 316 on the federal worksheet.

Tax Tips

You may be able to transfer all or part of your disability amount (and, if it applies, the supplement) to your spouse or common-law partner (who would claim it on line 326) or to another supporting person (who would claim it on line 318).

You may be able to claim all or part of the disability amount (and, if it applies, the supplement) transferred from your spouse or common-law partner on line 326 or from another dependant on line 318.

You may also be able to claim a working income tax benefit disability supplement. See line 453.

Claiming the disability tax credit?

Applying for the credit is as easy as 1-2-3. See how you or someone you know can benefit.

For more information visit Disability tax credit.

Line 318 – Disability amount transferred from a dependant

You may be able to claim all or part of your dependant's (other than your spouse's or common-law partner's) disability amount (line 316) if all the following apply:

  • your dependant is eligible for the disability tax credit;
  • your dependant was resident in Canada at any time in 2016; and
  • he or she was dependent on you for all or some of the basic necessities of life (food, shelter, and clothing).

In addition, one of the following situations has to apply:

  • You claimed an amount on line 305 for that dependant, or you could have if you did not have a spouse or common-law partner and if the dependant did not have any income (see line 305 for conditions).
  • The dependant was your or your spouse's or common-law partner's parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew and you claimed an amount on line 306 or 315 for that dependant, or you could have if he or she had no income and had been 18 years of age or older in 2016.

Notes

You cannot claim the unused part of this amount if the spouse or common-law partner of the person with a disability is already claiming the disability amount or any other non-refundable tax credit (other than medical expenses) for the person with a disability.

If you are splitting the unused part of this amount with another person, attach a note to your paper return that includes the name and social insurance number of the other person who is claiming this amount. The total claimed for that dependant cannot exceed the maximum amount allowed for that dependant.

If you or anyone else paid for an attendant or for care in an establishment, special rules may apply. For more information, see Guide RC4065, Medical Expenses. To view your disability tax credit information, go to My Account for Individuals.

How to claim this amount

If this is a new claim for this amount, you must submit a completed and certified Form T2201, Disability Tax Credit Certificate. We will review your claim before we assess your return to see if your dependant is eligible.
 

Note

You can send the form T2201 to us at any time during the year. Sending us your form before you file your income tax and benefit return may help avoid a delay in getting your assessment.

If your dependant was eligible for the disability tax credit for 2015 and still meets the requirements in 2016, you can claim this amount without sending us a new Form T2201. However, you must send us one if the previous period of approval ended before 2016 or if we ask you to. If you are not attaching a Form T2201 for a dependant, attach to your paper return a note stating the dependant’s name, social insurance number, and relationship to you.

If your dependant was under 18 years of age at the end of the year, first complete the chart for line 316 on the federal worksheet to calculate the supplement that dependant may be able to claim.

Complete the chart for line 318 on the federal worksheet to calculate your claim for each dependant and enter the amount on line 318 of your Schedule 1.

Tax Tip

If you can claim this amount, you may also be able to claim an amount on line 315 for the same dependant.

For more information about different amounts you may be able to claim, see Guide RC4064, Disability-Related Information or go to Tax credits and deductions for pensions with disabilities .

Line 319 – Interest paid on your student loans

You may have a loan under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act, or similar provincial or territorial government laws for post‑secondary education. For more information about the Canada Apprentice Loan if you are training as a registered Red Seal apprentice in a designated trade, contact Employment and Social Development Canada or visit Service Canada.

Only you can claim an amount for the interest you, or a person related to you, paid on that loan in 2016 or the preceding five years.

You can claim an amount only for interest you have not already claimed. If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your return. You can carry the interest forward and apply it on your return for any of the next five years.

Notes

You cannot claim interest paid on any other kind of loan or on a student loan that has been combined with another kind of loan. If you renegotiated your student loan with a bank or financial institution or included it in an arrangement to consolidate your loans, the interest on the new loan does not qualify for this tax credit.

In addition, you cannot claim interest you paid because of a judgment obtained after you failed to repay a student loan.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your documents for the amounts you are claiming for 2016.

Line 323 – Your tuition, education, and textbook amounts

Complete Schedule 11 to calculate your total eligible tuition, education, and textbook amounts for 2016 and to carry forward any unused amounts from previous years that are shown on your notice of assessment or notice of reassessment for 2015. Enter the amount you are claiming on line 323.

For more information, see Transferring and carrying forward amounts or Guide P105, Students and Income Tax.

Tax tips

Even if you have no tax to pay and you are transferring part of your tuition, education, and textbook amounts, file your return and attach a completed Schedule 11 so we can update our records with your unused tuition, education, and textbook amounts available to carry forward to other years.

If you are transferring an amount to a designated individual, transfer only the amount this person can use. That way, you can carry forward as much as possible to use in a future year.

You may be able to claim all or part of your spouse's or common-law partner's tuition, education, and textbook amounts on line 326 and/or your child's or grandchild's tuition, education, and textbook amounts on line 324.

Eligible tuition fees

Generally, a course qualifies if it was taken at the post-secondary level or (for persons 16 years of age or older at the end of the year) if it develops or improves skills in an occupation and the educational institution has been certified by Employment and Social Development Canada. In addition, you must have taken the course in 2016.

Not all fees can be claimed. To qualify, the fees you paid to attend a Canadian educational institution must exceed $100. For fees paid to an educational institution outside Canada, see Guide P105 and Information Sheet RC192, Information for Students – Educational Institutions Outside Canada. In addition, you cannot include in your claim the amounts paid for other expenses, such as board and lodging, students' association fees, or textbooks (see Textbook amount).

If the fees were paid or reimbursed by your employer or an employer of one of your parents, you can claim them only if the payment or reimbursement was included in your or your parent's income.

Forms

To claim tuition fees paid to an educational institution in Canada, you will need an official tax receipt or a completed Form T2202A, Tuition, Education, and Textbook Amounts Certificate, which your institution has to give you.

To claim tuition fees paid to an educational institution outside Canada, you will need Form TL11A, Tuition, Education, and Textbook Amounts Certificate – University Outside Canada, or Form TL11C, Tuition, Education, and Textbook Amounts Certificate – Commuter to the United States. Ask your institution to complete and give you the applicable form.

To claim tuition fees paid to a flying school or club in Canada, you will need a completed Form TL11B, Tuition, Education, and Textbook Amounts Certificate – Flying School or Club, which your school or club has to give you.

You can get these forms from us. You can also get Form TL11B from your flying school or club.

Education amount

You can claim this amount for each whole or part month in 2016 in which you were enrolled in a qualifying program. If you were under 16 years of age at the end of the year, you can claim this amount only for courses you took at the post-secondary level.

Post-secondary programs consisting mainly of research are eligible for the education amount only if they lead to a college or CEGEP diploma or a bachelor, masters, or doctoral (or equivalent) degree. For more information, see Guide P105, Students and Income Tax.

Generally, you cannot claim this amount for a program for which you received a benefit, a grant, an allowance, or a reimbursement of your tuition fees.

However, you can claim this amount even if you received salary or wages from a job related to your program of study or certain other kinds of payments, such as scholarships and student loans, or if you received and reported as income any financial assistance provided under:

  • Part II of the Employment Insurance Act (and shown in box 20 of your T4E slip) or a labour-market development agreement as part of a similar provincial or territorial program; or
  • a program developed under the authority of the Department of Employment and Social Development Act.

To confirm the period in which you were enrolled in a qualifying program, your educational institution has to complete and give you one of the following forms:

The following amounts apply for each month in which you were enrolled in a qualifying program:

  • If you were enrolled full-time, you can claim $400 per month.
  • If you attended only part-time and you are eligible for the disability tax credit, you can claim $400 per month.

    If you could attend only part-time because you had an impairment restricting one of the activities listed in Guide RC4064, Disability-Related Information, but your condition was not severe and prolonged, you can claim $400 per month. You must submit a letter from a medical doctor, optometrist, audiologist, occupational therapist, psychologist, physiotherapist, or speech language pathologist to certify your impairment.
     
  • If you were enrolled part-time, you can claim $120 per month.

You cannot claim more than one education amount per month.

Textbook amount

You can claim this amount if you are entitled to claim the education amount.

The following are the amounts you can claim:

  • $65 for each month you qualify for the full-time education amount; and
  • $20 for each month you qualify for the part-time education amount.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule 11 but do not send your other documents. Keep them in case we ask to see them later.

Transferring and carrying forward amounts

You must claim your tuition, education, and textbook amounts first on your own return, even if someone else paid your fees. However, you may be able to transfer all or some of the unused part of these amounts to your spouse or common-law partner (who would claim it on line 326 of his or her Schedule 1) or to your or your spouse's or common-law partner's parent or grandparent (who would claim it on line 324 of his or her Schedule 1).

You can designate who can claim an unused amount and specify the amount that person can claim. To do this, complete the “Transfer or carryforward of unused amount” section of Schedule 11 to calculate this transfer. As well as any of the following applicable forms: 

Attach Schedule 11 to your return even if you are transferring all of your total tuition, education, and textbook amounts.

You can carry forward and claim in a future year the part of your tuition, education, and textbook amounts you cannot use (and do not transfer) for the year. However, if you carry forward an amount, you will not be able to transfer it to anyone. You must claim your carry-forward amount in the first year you have to pay federal tax. Calculate the carry-forward amount on Schedule 11.

To view your carryforward amounts, go to My Account for Individuals.

Line 324 – Tuition, education, and textbook amounts transferred from a child

If you are the parent or grandparent of a student or his or her spouse or common-law partner, the student may be able to transfer to you all or part of his or her unused tuition, education, and textbook amounts for 2016. The maximum transferable amount from each student is $5,000 minus the amounts he or she uses, even if there is still an unclaimed part.

Note

The student cannot transfer to you any tuition, education, or textbook amounts carried forward from a previous year.

How to claim this amount

The student has to complete the “Transfer or carryforward of unused amount” section of Schedule 11 and attach the schedule to his or her return. The student must also complete any of the following applicable forms to designate you as the person who can claim the amount:

If the amount being transferred to you is not shown on these forms, you should have a copy of the student's official tuition fee receipt.

Amounts claimed by student's spouse or common-law partner – If a student's spouse or common-law partner claims an amount on line 303 or 326 for the student, you cannot claim an amount on line 324 for that student. However, the student's spouse or common-law partner can include the transfer on line 326.

No amounts claimed by student's spouse or common-law partner – If the student's spouse or common-law partner does not claim an amount on line 303 or 326 for the student, or if the student does not have a spouse or common-law partner, the student can choose which parent or grandparent will claim an amount on line 324.

Only one person can claim this transfer from the student. However, it does not have to be the same parent or grandparent who claims an amount on line 305 or 306 for the student.

Supporting documents – If you are filing electronically or filing a paper return, do not send any documents. Keep them in case we ask to see them later. The student must attach Schedule 11 to his or her paper return.

Line 326 – Amounts transferred from your spouse or common-law partner

You may be able to claim all or part of the following amounts for which your spouse or common-law partner qualifies if he or she did not need the whole amount to reduce his or her federal tax to zero:

  • the age amount (line 301) if your spouse or common-law partner was 65 years of age or older;
  • the family caregiver amount for infirm children under 18 years of age (line 367);
  • the pension income amount (line 314);
  • the disability amount for self (line 316); and
  • the tuition, education, and textbook amounts (line 323) for 2016 your spouse or common-law partner designates to you. The maximum amount your spouse or common-law partner can transfer is $5,000 minus the amounts he or she uses even if there is still an unused part.

Notes

Your spouse or common-law partner cannot transfer to you any tuition, education, or textbook amounts carried forward from a previous year.

If you were separated because of a breakdown in your relationship for a period of 90 days or more including December 31, 2016, your spouse or common-law partner cannot transfer any unused amounts to you.

Complete Schedule 2 to calculate your claim.

If the amount on this line includes a new claim for the disability amount, attach a completed and certified Form T2201, Disability Tax Credit Certificate. We will review your claim before we assess your return to see if your spouse or common-law partner is eligible for the disability tax credit. If he or she was eligible for 2015 and still meets the requirements in 2016, you can claim this amount without sending us a new Form T2201. However, you must send us one if the previous period of approval ended before 2016 or if we ask you to.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach to your return your completed Schedule 2, and if your spouse or common-law partner is not filing a return, attach the information slips that show his or her income. Do not send your other supporting documents, but keep them in case we ask to see them later.

Line 330 – Medical expenses for self, spouse or
common-law partner, and your dependent children born in 1999 or later

You can claim on line 330 the total eligible medical expenses you or your spouse or common-law partner paid for:

  • yourself;
  • your spouse or common-law partner; and
  • your or your spouse's or common-law partner's children born in 1999 or later.

Medical expenses for other dependants must be claimed on line 331.

You can claim eligible medical expenses paid in any 12-month period ending in 2016 and not claimed for 2015. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than 3% of your net income (line 236 of your return) or $2,237, whichever is less.

Notes

On the return for a person who died in 2016, a claim can be made for expenses paid in any 24-month period that includes the date of death if they were not claimed for any other year.

If you are claiming expenses paid for a dependant who died in the year, these amounts can be claimed for any 24-month period that includes the date of death if they were not claimed for any other year.

Tax Tip

There is a refundable tax credit for working individuals with low incomes and eligible medical expenses. See line 452.

Eligible medical expenses

Some eligible medical expenses you can claim are:

  • payments to a medical doctor, dentist, nurse, or certain other medical professionals or to a public or licensed private hospital;
  • premiums paid to private health services plans (other than those paid by an employer, such as the amount shown in box J of your Quebec Relevé 1 slip);
  • premiums paid under a provincial or territorial prescription drug plan, such as the Quebec Prescription Drug Insurance Plan and the Nova Scotia Seniors' Pharmacare Program (amounts or premiums paid to provincial or territorial government medical or hospitalization plans are not eligible); and
  • payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, prescription drugs, and certain prescription medical devices.

Reimbursement of an eligible expense – You can claim only the part of an expense for which you have not been or will not be reimbursed. However, you can claim the full expense if the reimbursement is included in your income, such as a benefit shown on a T4 slip, and you did not deduct the reimbursement anywhere else on your return.

Travel expenses – If medical services are not available to you within 40 kilometres of your home, you may be able to claim the cost of your transportation to get these services somewhere else. You can choose to simplify the way you calculate this amount. For more information, use Info-Tax, one of our Tax Information Phone Services.

If you use the simplified method, you can find the rate per kilometre for each province or territory by going to Meal and vehicle rates used to calculate travel expenses.

If you had to travel at least 80 kilometres from your home, you can claim accommodation and meal expenses in addition to transportation expenses.

For more information about medical expenses, go to Lines 330 and 331 – Eligible medical expenses you can claim on your return or use Info‑Tax, one of our Tax Information Phone Services. You can also see Guide RC4065, Medical Expenses, and Income Tax Folio S1-F1-C1, Medical Expense Tax Credit.

Tax Tip

Compare the amount you can claim with the amount your spouse or common-law partner would be allowed to claim. It may be better for the spouse or common-law partner with the lower net income (line 236) to claim the allowable medical expenses. You can make whichever claim you prefer.

The following example shows you how to calculate your claim.

Example

Richard and his wife Pauline have two children. They have reviewed their medical bills and decided that the 12-month period ending in 2016 for which they will calculate their claim is July 1, 2015, through June 30, 2016. They incurred the following expenses:

List of expenses

Richard
$1,500
 
Pauline
$1,000
 
Jen (their 16-year-old daughter)
$1,800
 
Rob (their 19-year-old son)
$1,000
 
Total medical expenses
$5,300
 

The total allowable expenses for 2016 are $4,300, which will be entered on line 330. Since Rob is over 18 years of age, his expenses will be claimed on line 331.

Pauline’s net income on line 236 of her return is $32,000. She calculates 3% of that amount as $960. Because the result is less than $2,237, she enters $960 on line 28 (line 31 for Quebec residents) and subtracts it from $4,300. The difference is $3,340, which is the amount on line 29 (line 32 for Quebec residents).

Richard’s net income on line 236 of his return is $48,000. He calculates 3% of that amount as $1,440. Because the result is less than $2,237, he enters $1,440 on line 28 (line 31 for Quebec residents) and subtracts it from $4,300. The difference is $2,860, which is the amount on line 29 (line 32 for Quebec residents).

In this case, Pauline and Richard have found it is better for Pauline to claim all the expenses for them and their daughter Jen.

You may be claiming expenses that would be allowable only for a person who is eligible for the disability tax credit. For information about the disability amount, see line 316.

Supporting documents – Do not send any supporting documents when you file your tax return. Keep them in case we ask to see them later.

Line 331 – Allowable amount of medical expenses for other dependants

Claim on line 331 the part of eligible medical expenses you or your spouse or common-law partner paid for the following persons who depended on you for support:

  • your or your spouse's or common-law partner's children born in 1998 or earlier or grandchildren; and
  • your or your spouse's or common-law partner's parents, grandparents, brothers, sisters, aunts, uncles, nieces, or nephews who were residents of Canada at any time in the year.

The expenses must meet the criteria in the section Eligible medical expenses at line 330. They have to cover the same 12-month period that was used for line 330.

For more information, see Guide RC4065, Medical Expenses.

Calculate for each dependant the medical expenses you are claiming on this line. The total of these expenses must exceed the lesser of $2,237 and 3% of the dependant's net income for the year.

Use the following chart for each dependant:

Total eligible expenses

Other dependant's medical expenses

 

Less: $2,237 or 3% of line 236 of that dependant (whichever is less)

−    

Allowable medical expenses

=    

Claim on line 331 the total of all allowable amounts for each dependant.

Line 349 – Donations and gifts

You can claim donations either you or your spouse or common-law partner made. Enter your claim from the calculation on Schedule 9. See Pamphlet P113, Gifts and Income Tax, for more information about donations and gifts or if you made any of the following:

  • gifts of property other than cash (gifts in kind);
  • gifts to qualified donees outside Canada; or
  • gifts to Canada, a province, or a territory.

Notes

New The calculation for donations made in 2016 and later years has changed. For more information, see Schedule 9, Donations and Gifts.

These gifts do not include contributions to political parties. If you contributed to a federal political party, see lines 409 and 410 to find out about claiming a credit. If you contributed to a provincial or territorial political party, see the provincial or territorial forms to find out about claiming a credit. If you are a resident of Quebec, refer to your provincial guide.

Monetary gifts to Canada should be made payable to the Receiver General of Canada. Send the gift, along with a note stating that the money is a gift to Canada, to: Place du Portage, Phase III, 11 Laurier Street, Gatineau QC  K1A 0S5. If you made such a gift, you should have been given an official donation receipt.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule 9 but do not send your other documents. Keep them in case we ask to see them later.

Allowable charitable donations (line 340 of Schedule 9)

Add up all the eligible amounts of your donations to registered charities and other qualified donees made in 2016 plus donations made in any of the previous five years that have not been claimed before. This includes gifts to Canada, a province, or a territory. For a list of qualified donees, use Info-Tax, one of our Tax Information Phone Services, or see Pamphlet P113, Gifts and Income Tax.

The eligible amount is the amount by which the fair market value of your gift exceeds any advantage you received or will receive for making the gift. Generally, an advantage includes the value of certain property, service, compensation, use, or any other benefit. For more information, see Pamphlet P113, Gifts and Income Tax.

Generally, you can claim on line 340 all or part of the eligible amount of these donations, up to a limit of 75% of your net income for the year. You may be able to increase this limit if you donate capital property (including depreciable property). For more information, see Pamphlet P113, Gifts and Income Tax. For the year a person dies and the year before that, this limit is 100% of the person's net income.

Note

If you have taken a vow of perpetual poverty as a member of a religious order, this limit does not apply. Claim your donations on line 256 of your return.

Tax Tip

You do not have to claim on your return for 2016 the donations you made in 2016. It may be more beneficial for you to carry them forward and claim them on your return for any of the next five years. No matter when you claim them, you can claim them only once.

Donations of certain flow-through share properties may result in a deemed capital gain that is subject to an inclusion rate of 50%. For more information, see Pamphlet P113, Gifts and Income Tax and Guide T4037, Capital Gains.

New For deaths that occur after 2015, donations made by will and designation donations are no longer deemed to be made by an individual immediately before the individual’s death. For more information, see Pamphlet P113, Gifts and Income Tax.

Cultural and ecological gifts (line 342 of Schedule 9)

Unlike other donations, your total eligible amount claimed for these types of gifts is not limited to a percentage of net income. You can choose the part you claim in 2016 and carry forward any unused part for up to five years.

For donations of ecologically sensitive lands made after February 10, 2014, the carry-forward period is up to 10 years.

For donations of certified cultural property made after February 10, 2014, special rules apply when the property was acquired through a gifting arrangement that is a tax shelter.

For more information about these gifts and the amounts you can claim, see Pamphlet P113, Gifts and Income Tax.

First-time donor’s super credit (FDSC) (line 343 of Schedule 9)

For 2013 to 2017, if you are a first-time donor, you can claim up to $1,000 of donations of money made after March 20, 2013, for the FDSC. This credit is calculated by multiplying the eligible amount of these donations by 25%. This is in addition to the credit already allowed for these same donations that you and your spouse or common-law partner claimed on line 340 of Schedule 9.

To qualify as a first-time donor, neither you nor your spouse or common-law partner can have claimed and been allowed a charitable donations tax credit for any year after 2007. If you have a spouse or common-law partner, you can share the FDSC, but the total combined donations claimed cannot exceed $1,000.

Enter the amount of the gift on line 343 of Schedule 9. For more information, go to First-time donor’s super credit.

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