,canada ,rev5ue ,ag5cy                #a

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#die;,r#c
,date3 ,may #aa1 #bjje
,subject3 ,9come ,tax ,act--,* ,c>e
  ,exp5ses
,ref];e3 ,sec;n #fc 7al sec;ns #f1 #g1
  #fd.a1 #aah1 #aah.c & #abb.f2
  subsec;ns #ha7#d71 #aah7#a71
  #aah.b7#b71 #aah.c7#a71 #aah.f7#a71
  #abb.fa7#a71 #bbj7#b.a71 & #bea7#f72 !
  m1n+ ( -mon-law "pn] 9 subsec;n
  #bdh7#a7 &! ext5d$ m1n+ ( * 9 subsec;n
  #beb7#a72 & p>agraphs #c7f71
  #ef7#a77n71 #ef7#a77o71 #ef7#a77r71
  #fj7v4#a71 #fj7w71 #ha7#a77a71
  #aah7#a77c71 #bea7#b77a7 & #beb7#b77a7
  (! ,9come ,tax ,act74

  ,at ! ,canada ,rev5ue ,ag5cy 7,,cra71
we issue 9come tax 9t]pret,n bullet9s
7,,it's7 9 ord] 6provide te*nical
9t]pret,ns & posi;ns reg>d+ c]ta9     #a
             ,,it-#die;,r#c          a#a
provi.ns 3ta9$ 9 9come tax law4 ,due 6_!
te*nical nature1 ,,it's >e us$ prim>ily
0\r /aff1 tax speciali/s1 & o!r
9dividuals :o h an 9t]e/ 9 tax matt]s4
,= ^? r1d]s :o pref] a less te*nical
explan,n (! law1 we (f] o!r public,ns1
s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4     #b
             ,,it-#die;,r#c          b#a
,if1 on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =
transac;ns 5t]$ 96af ! date on : ! *ange
is publi%$4
  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.cra.gc.ca_:
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,9come ,tax ,rul+s ,directorate
  ,policy & ,plann+ ,bran*
  ,canada ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e

or 0email at ! foll[+ a4ress3
_+bulletins@cra.gc.ca_:
  ,? v].n is only availa# electronic,y4





                                      #c
                 ,3t5ts              c#a
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,explan,n ( expres.ns us$
    ,* c>e exp5se 7p>agraphs #a-b7
    ,$uc,nal 9/itu;n 7p>agraph #c7
    ,"d sports s*ool 7p>agraph #d7
    ,exclud$ * c>e exp5ses 7p>agraph #e7
    ,eligi# * c>e provid] 7p>agraph #f7
    ,eligi# * 7p>agraph #g7
    ,ext5d$ m1n+ ( * 7p>agraph #h7
    ,sp\se & -mon-law "pn] 7p>agraph #i7
    ,support+ p]son 7p>agraph #aj7
    ,annual * c>e exp5se am.t
      7p>agraph #aa7
    ,p]iodic * c>e exp5se am.t
      7p>agraph #ab7
  ,:o may claim ! deduc;n
    ,g5]al rule 7p>agraph #ac7
      ,9come 7p>agraphs #ad-ae7
      ,pay] ( * c>e exp5ses
        7p>agraph #af7
                                      #d
             ,,it-#die;,r#c          d#a
    ,hi<] 9come taxpay] 7p>agraph #ag7
      ,sep>,n & %>$ cu/ody
        7p>agraph #ah7
    ,/ud5ts 7p>agraph #ai7
      ,full-"t & "p-"t programs
        7p>agraph #bj7
  ,maximum deduc;n
    ,g5]al rule 7p>agraph #ba7
      ,e>n$ 9come 7p>agraphs #bb-bc7
    ,deductibil;y ( * c>e exp5ses 0!
      hi<] 9come taxpay]
      7p>agraphs #bd-be7
    ,* c>e exp5ses :ile at s*ool
      7p>agraph #bf7
    ,designat$ $uc,nal 9/itu;n
      7p>agraph #bg7
    ,=m ,t#ggh & receipts 7p>agraph #bh7
    ,o!r situ,ns 7p>agraph #bi7
    ,impact ( * c>e exp5se claims
      ,* tax b5efit supple;t
        7p>agraph #cj7
      ,4abil;y tax cr$it supple;t
        7p>agraph #ca7
,explan,n ( ,*anges                   #e
               ,applic,n              #b
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#die;,r#b1 ,* ,c>e
,exp5ses1 dat$ ,janu>y #ac1 #aiig4 ,!
-;ts 9 ? bullet9 apply 6! #bjja &
subsequ5t tax,n ye>s4 ,un.s o!rwise
/at$1 all /atutory ref];es "?\t !
bullet9 >e 6! ,9come ,tax ,act 7! ,act74
,all t]ms 9 .bold >e def9$ 9 ! ,act &
expla9$ 9 ? ,,it4
  ,pl1se note t ? bullet9 does n reflect
,bill ;,c-#ch1 an ,act respect+ c]ta9
aspects ( legal capac;y = m>riage =
civil purposes1 ta#d on ,febru>y #a1
#bjje4

                ,summ>y
    
  ,! purpose (! legislative provi.ns
reg>d+ .* .c>e .exp5ses is 6provide "s
relief = taxpay]s :o 9cur .* .c>e
.exp5ses 9 ord] 6"w1 c>ry on a busi;s or
"utake c]ta9 $uc,nal activities4
                                      #f
             ,,it-#die;,r#c          a#b
  ,a taxpay] is all[$ 6deduct 9 -put+
9come =a tax,n ye> an am.t pd z or on
a3.t ( .* .c>e .exp5ses 9curr$ = s]vices
r5d]$ 9 ! ye>4 ,! deduc;n is limit$ to3
    --a maximum ( 4#aj1jjj p] ye> = ea*
      .eligi# .* 9 respect ( :om !
      taxpay] may claim ! 4abil;y tax
      cr$it =! ye>2
    --a maximum ( 4#g1jjj p] ye> = ea*
      o!r .eligi# .* :o is "u #g ye>s (
      age at ! 5d (! ye>2 &
    --a maximum ( 4#d1jjj p] ye> = ea*
      o!r .eligi# .*4
  ,dep5d+ ^u ! circum/.es1 qualify+ .*
.c>e .exp5ses may 2 deduct$ 0! taxpay]
mak+ ! pay;t1 0a .support+ .p]son or
0bo?4 ,pay;ts d n qualify z .* .c>e
.exp5ses if !y >e made 6a p>5t or
.support+ .p]son (! *1 or 6a p]son :o is
"u #ah ye>s ( age & .relat$ 6! taxpay]4
  ,! bullet9 4cusses ! m1n+ ( .* .c>e
.exp5ses 9clud+ ! circum/.es "u : s*
exp5ses may 2 deduct$4 ,x -;ts on c]ta9
specific types ( exp5ses & :e!r or    #g
             ,,it-#die;,r#c          b#b
n !y qualify = deduc;n4 ,x al 4cusses :o
is eligi# 6claim .* .c>e .exp5ses &!
limit,ns ) respect 6s* claims4 ,examples
>e provid$ = l[] & hi<] 9come taxpay]s4

          ,4cus.n & ,9t]pret,n
    
       ,explan,n ( expres.ns us$
    
     ,* c>e exp5se 7p>agraphs #a-b7
    
#a4 ,! t]m .* .c>e .exp5se is def9$ 9
  subsec;n #fc7#c74 .,* .c>e .exp5se
  m1ns an exp5se 9curr$ = s]vices r5d]$
  9 a tax,n ye> =! purpose ( provid+ *
  c>e s]vices = any .eligi# .* 7see
  p>agraph #g7 (a taxpay] if ! s]vices 7
  provid$ 65a# ! taxpay] or a .support+
  .p]son 7see p>agraph #aj7 (! * =! ye>3
  --6p]=m ! duties ( an (fice or
    employ;t2
  --6c>ry on a busi;s ei al"o or z a
    "pn] actively 5gag$ 9 ! busi;s2
                                      #h
             ,,it-#die;,r#c          c#b
  --6c>ry on rese>* or any simil> "w = :
    ! taxpay] or .support+ .p]son rcvd a
    grant2 or
  --6att5d a second>y s*ool or
    .designat$ .$uc,nal .9/itu;n ": !
    taxpay] is 5roll$ 9 a full-"t or "p-
    "t $uc,nal program 7see p>agraph
    #bj74
  
  ,! taxpay] or .support+ .p]son m/ h
  resid$ )! * at ! "t ! exp5se 0 9curr$
  9 ord] =! exp5se 6qualify z a .* .c>e
  .exp5se4
#b4 .,* .c>e .exp5ses 9clude pay;ts to3
  --an eligi# * c>e provid] 7see
    p>agraph #f72
  --a "d nurs]y s*ool or "d-c>e c5tre2
  --a "d camp or "d sports s*ool 7see
    p>agraph #d72
  --a bo>d+ s*ool or camp 79clud+ a
    sports s*ool ": lodg+ is 9volv$72 &
  --an $uc,nal 9/itu;n 7see p>agraph #c7
    =! purpose ( provid+ * c>e s]vices4
                                      #i
             ,,it-#die;,r#c          d#b
  ,! abv is n an exhau/ive li/ (
  deducti# .* .c>e .exp5ses4 ,= example1
  adv]tis+ exp5ses & place;t ag5cy fees
  9curr$ 6locate a * c>e provid] &
  m&atory regi/r,n fees may al qualify z
  .* .c>e .exp5ses4 ,9 ea* case1 !
  require;ts 9 ! def9i;n ( .* .c>e
  .exp5se 9 subsec;n #fc7#c71 z expla9$
  9 p>agraphs #a1 #e & #f1 m/ al 2 met4

     ,$uc,nal 9/itu;n 7p>agraph #c7
    
#c4 ,:5 an $uc,nal 9/itu;n (f]s * c>e z
  well z an $uc,nal program1 only !
  por;n (! fees pd 6! 9/itu;n relat+ 6*
  c>e 7i4e41 sup]vi.n 2f & af classes or
  dur+ ! lun* p]iod7 may qualify z .*
  .c>e .exp5ses4 ,h["e1 :5 ! pay;t made
  is =a * "u ! -pulsory s*ool age1 !
  s]vices 2+ provid$ >e g5],y 3sid]$ *
  c>e r ?an $uc,n un.s ! facts 9dicate
  o!rwise4

                                     #aj
            ,"d sports s*ool         e#b
             7p>agraph #d7
    
#d4 ,! t]m "d sports s*ool is 9t5d$
  6cov] ^? "d camps provid+ a su6ici5t
  degree ( * c>e s]vices4 ,": a *
  "picipates 9 a "picul> program t
  9cludes sports1 "! c 2 an ele;t (
  $uc,n & p]h tra9+ z well z an ele;t (
  * c>e4 ,h["e1 9 any "picul> case1 x is
  a "q ( fact z 6:e!r * c>e s]vices c 2
  reg>d$ z hav+ be5 provid$ or :e!r a
  program ( tra9+ &/or $uc,n is ess5ti,y
  9volv$4 ,) respect 6any "picul>
  program1 a degree ( basic protec;n &
  safety 7* c>e s]vices7 is norm,y
  9volv$ al? ! program may al provide
  activities & 9/ruc;n : 5ri* ! program4
  ,9 det]m9+ :e!r a "picul> sports
  program 9volves a su6ici5t degree ( *
  c>e1 "s factors t
--------------------------------------#c
  wd 2 3sid]$ >e ! age (! "picipat+ *n1
  ! 9/ructors' qualific,ns1 ! ext5t t
  progress is m1sur$ & goal-         #aa
             ,,it-#die;,r#c          a#c
  ori5t,n is 9volv$1 ! "t devot$ 6!
  program1 ! dur,n (! program &! tra9+ &
  $uc,nal facilities us$4 ,= example1
  sports "d camps = "y *n >e g5],y n (
  an ongo+ nature & x is g5],y recogniz$
  t "! is a su6ici5t degree ( * c>e ev5
  ?\< ! program is 5ri*$ 0sport+
  activities ) 9/ruc;n4 ,on ! o!r h&1
  *n1 "picul>ly ^? :o >e old]1 may
  "picipate 9 a sports program t is
  ongo+ =a l5g?y p]iod ( "t1 ! 9/ructors
  h degrees or c]tificates 9 respect (
  physical $uc,n1 progress is regul>ly
  monitor$ & is goal-ori5t$1 &
  sophi/icat$ tra9+ me?ods & facilities
  >e us$4 ,9 ? type ( sc5>io1 x is \r
  g5]al view t $uc,n & tra9+ >e ess5ti,y
  9volv$ z oppos$ 6* c>e4

         ,exclud$ * c>e exp5ses
             7p>agraph #e7
    
#e4 ,specific,y exclud$ f ! def9i;n ( .*
  .c>e .exp5se >e3                   #ab
             ,,it-#die;,r#c          b#c
  --m$ical exp5ses describ$ 9 subsec;n
    #aah.b7#b7 7see ! curr5t v].n (
    ,,it-#eai1 ,m$ical ,exp5se &
    ,4abil;y ,tax ,cr$its & ,att5dant
    ,c>e ,exp5se ,deduc;n7 & any o!r
    exp5ses = m$ical or hospital c>e2
  --clo?+1 transport,n or $uc,n co/s2 &
  --bo>d & lodg+ exp5ses1 except 6!
    ext5t !y >e 9clud$ 9 ! total *>ges =
    att5d.e at an ov]ni<t sports s*ool
    or a bo>d+ s*ool or camp & ^? total
    *>ges d n exce$ ! product obta9$ :5
    multiply+ ! ..p]iodic * c>e exp5se
    .am.t 7see p>agraph #ab7 9 respect
    (! * =! ye> 0! numb] ( weeks dur+ :
    ! * att5d$ ! s*ool or camp4
  
  ,note t ! co/ ( m1ls is n 4qualifi$ :5
  x is 9clud$ 9 ! co/ ( babysitt+1 "d
  nurs]y or "d camp s]vices4



                                     #ac
         ,eligi# * c>e provid]       c#c
             7p>agraph #f7
    
#f4 ,subject 6! excep;ns \tl9$ 9
  p>agraph #bi1 = an exp5se 9 respect (
  * c>e s]vices 6qualify z a .* .c>e
  .exp5se1 ! s]vices m/ 2 provid$ 0a
  resid5t ( ,canada4 ,": ! * c>e s]vices
  >e provid$ 0an 9dividual1 ! 9dividual
  m/ 2 a p]son o!r ?an3
  --! *'s "f or "m2
  --a .support+ .p]son (! *2
  --a p]son 9 respect ( :om ! taxpay] or
    a .support+ .p]son (! * has deduct$
    a tax cr$it "u sec;n #aah =! ye>2 or
  --a p]son :o is "u #ah ye>s ( age &
    .relat$ 6! taxpay]4
  
  ,p>agraph #bea7#b77a7 provides t
  9dividuals >e .relat$ if !y >e 3nect$
  0blood rel,n%ip1 m>riage1 .-mon-law
  ."pn]%ip or adop;n4 ,subsec;n #bea7#f7
  def9es a 3nec;n 0blood rel,n%ip1
  m>riage1 .-mon-law ."pn]%ip or adop;n
  =! purposes (! ,act4 ,= example1   #ad
             ,,it-#die;,r#c          d#c
  a bro!r-in-law or si/]-in-law (!
  taxpay] is .relat$ 6! taxpay] "u
  subsec;n #bea7#f74 ,h["e1 a niece1
  nephew1 aunt1 or uncle is g5],y n
  .relat$ 6! taxpay]4 ,= fur!r 9=m,n on
  ! crit]ia us$ 6det]m9e :e!r or n
  p]sons d1l ) ea* o!r at >m's l5g? "u !
  ,act see ! curr5t v].n ( ,,it-#dai1
  ,m1n+ ( ,>m's ,l5g?4

        ,eligi# * 7p>agraph #g7
    
#g4 ,an .eligi# .* (a taxpay] =a tax,n
  ye> is def9$ 9 subsec;n #fc7#c7 6m1n3
  --a * (! taxpay] or (! taxpay]'s sp\se
    or .-mon-law ."pn] 7see p>agraphs #h
    & #i72 or
  --a * dep5d5t on ! taxpay] or !
    taxpay]'s .sp\se or .-mon-law ."pn]
    = support & ^: 9come =! ye> does n
    exce$ ! basic p]sonal am.t =! ye> z
    provid$ 9 p>agraph 7c7 (! descrip;n
    ( ;,b 9 subsec;n #aah7#a74
                                     #ae
             ,,it-#die;,r#c          e#c
  ,! * has 6be "u #af ye>s ( age at "s
  "t 9 ! ye>4 ,h["e1 ! age limit does n
  apply if1 dur+ ! ye>1 ! * is dep5d5t
  on ! taxpay] or on ! taxpay]'s sp\se
  or .-mon-law ."pn] & has a m5tal or
  physical 9firm;y4

     ,ext5d$ m1n+ ( * 7p>agraph #h7
    
#h4 ,subsec;n #beb7#a7 provides an
  ext5d$ m1n+ (! t]m 8*0 =! purposes (!
  ,act4 ,"u ? subsec;n1 a * (a taxpay]
  9cludes3
  --a natural * (! taxpay]2
  --a p]son :o is :olly dep5d5t on !
    taxpay] = support &( :om ! taxpay]
    has1 or immly 2f ! p]son atta9$ !
    age ( #ai ye>s _h1 9 law or 9 fact1
    ! cu/ody & 3trol2
  --a * (! taxpay]'s sp\se or .-mon-law
    ."pn]2 &
  --an adopt$ * (! taxpay]4
  
                                     #af
         ,sp\se & -mon-law "pn]      f#c
             7p>agraph #i7
    
#i4 ,! t]m sp\se n[ ref]s exclusively 6a
  p]son :o is leg,y m>ri$ 6! taxpay]4 ,!
  t]m .-mon-law ."pn] 9 respect (a
  taxpay] is def9$ 9 subsec;n #bdh7#a7 &
  at a "picul> "t 9cludes3
  7a7 a p]son :o at t "t cohabits 9 a
    3jugal rel,n%ip )! taxpay] & has d"o
    s = any 3t9u\s p]iod ( at l1/ "o
    ye>2 &
  7b7 a p]son :o at t "t cohabits 9 a
    3jugal rel,n%ip )! taxpay] & is !
    p>5t (a * (! taxpay] = "o (! foll[+
    r1sons3
    --! p]son is ! natural or adoptive
      p>5t (! *2 or
--------------------------------------#d
    --! * is :olly dep5dant on ! p]son =
      support &! p]son has1 9 law or 9
      fact1 ! cu/ody & 3trol (! * 7or
      did immly 2f ! * turn$ #ai74
    
                                     #ag
             ,,it-#die;,r#c          a#d
  ,"u ! def9i;n ( .-mon-law ."pn]1 once
  a taxpay] & ano!r 9dividual h cohabit$
  9 a 3jugal rel,n%ip1 !y w 2 deem$
  6cohabit 9 a 3jugal rel,n%ip at any
  future "picul> "t un.s1 2c (a br1kd[n
  ( _! 3jugal rel,n%ip1 !y 7 liv+
  sep>ate & a"p at t "picul> "t &=a
  p]iod ( at l1/ #ij "ds t 9cludes t "t4

,note3
  ,h["e1 draft am5d;ts 7 rel1s$ 9
  ,febru>y #bjjd1 6p>agraph 7a7 (!
  def9i;n ( .-mon-law ."pn] 9 subsec;n
  #bdh7#a74 ,if 5act$ z propos$1 =!
  #bjja & subsequ5t tax,n ye>s1 6qualify
  z .-mon-law ."pn]s at a "picul> "t "u
  7a7 abv1 ! two 9dividuals m/ h
  cohabit$ 9 a 3jugal rel,n%ip "?\t !
  twelve mon? p]iod t 5ds at t "picul>
  "t4



                                     #ah
            ,support+ p]son          b#d
             7p>agraph #aj7
    
#aj4 ,a .support+ .p]son ( an .eligi# .*
  (a taxpay] =a tax,n ye> is def9$ 9
  subsec;n #fc7#c7 6m1n an 9dividual :o
  resid$ )! taxpay] at any "t dur+ ! ye>
  & at any "t )9 #fj "ds af ! 5d (! ye>
  & :o is3
  --! *'s p>5t 7p>agraph #beb7#b77a7
    provides an ext5d$ m1n+ ( p>5t =!
    purposes (! ,act72
  --! taxpay]'s sp\se or .-mon-law
    ."pn]2 or
  --any o!r 9dividual :o claim$ a tax
    cr$it "u sec;n #aah =! * =! ye>4
  
       ,annual * c>e exp5se am.t
             7p>agraph #aa7
    
#aa4 ,! ..annual * c>e exp5se .am.t is
  def9$ 9 subsec;n #fc7#c7 & sets \ !
  ov]all maximum am.t t a taxpay] c
  deduct =a ye> 9 respect (! taxpay]'s
  .eligi# .* 7see p>agraph #g74 ,!   #ai
             ,,it-#die;,r#c          c#d
  *'s age1 physical & m5tal 3di;n w
  det]m9e ! maximum am.t 6be deduct$4

  ,=a * 9 respect ( :om a 4abil;y tax
  cr$it may .n 2 claim$

  ,9 ? case1 ! ..annual * c>e exp5se
  .am.t is3
  --4#g1jjj = ea* * "u #g ye>s ( age at
    ! 5d (! ye>2
  --4#d1jjj = ea* * ov] #f ye>s ( age at
    ! 5d (! ye> & "u #af ye>s ( age at
    any "t dur+ ! ye>2 or
  --4#d1jjj = ea* * ov] #ae ye>s ( age
    "?\t ! ye> :o has a physical or
    m5tal 9firm;y & is dep5d5t on !
    taxpay]1 ! taxpay]'s sp\se or .-mon-
    law ."pn] 7see ! curr5t v].n ( ,,it-
    #eac1 ,p]sonal ,tax ,cr$its1 = m
    9=m,n74
  
  ,=a * 9 respect ( :om a 4abil;y tax
  cr$it .may .2 claim$
                                     #bj
             ,,it-#die;,r#c          d#d
  ,:5 ! cr$it c 2 claim$ =! ye> "u sec;n
  #aah.c =a * )a sev]e & prol;g$ m5tal
  or physical impair;t1 ! ..annual * c>e
  exp5se .am.t is 4#aj1jjj 7see p>agraph
  #ca =a 4cus.n (! pot5tial impact (a .*
  .c>e .exp5se claim on ! 5title;t 6a
  4abil;y tax cr$it supple;t74 ,see !
  curr5t v].n ( ,,it-#eai1 ,m$ical
  ,exp5se & ,4abil;y ,tax ,cr$its &
  ,att5dant ,c>e ,exp5se ,deduc;n = m
  9=m,n4

       ,p]iodic * c>e exp5se am.t
             7p>agraph #ab7
    
#ab4 ,! ..p]iodic * c>e exp5se .am.t z
  def9$ 9 subsec;n #fc7#c7 is #a ov] #dj
  (! ..annual * c>e exp5se .am.t 7see
  p>agraph #aa7 9 respect ( an .eligi#
  .* (! taxpay] =! ye>4 ,! total p]iodic
  * c>e exp5se am.ts is #a ov] #dj (!
  sum (! annual * c>e exp5se am.ts 9
  respect ( all .eligi# .*n (! taxpay]
  =! ye>4                            #ba
        ,:o may claim ! deduc;n      e#d
    
       ,g5]al rule 7p>agraph #ac7
    
#ac4 ,subsec;n #fc7#a7 provides t an
  am.t pd z or on a3.t ( .* .c>e
  .exp5ses 9curr$ = s]vices r5d]$ 9 a
  tax,n ye> = an .eligi# .* may 2
  deduct$3
  7a7 only 0! taxpay]1 :5 "! is no
    .support+ .p]son 7e4g41 a taxpay]
    lives al"o )! .eligi# .* "?\t !
    ye>72 or
  7b7 only 0! taxpay] )! l[] 9come1 :5
    "! is a taxpay] &a .support+ .p]son
    &! circum/.es describ$ 9 p>agraph
    #ag7a7 to 7c7 d n apply4
  
  ,an am.t pd z or on a3.t ( .* .c>e
  .exp5ses 9curr$ = s]vices r5d]$ 9 a
  tax,n ye> = an .eligi# .* may 2
  deduct$ 0! taxpay] )! hi<] 9come or
  "ply 0bo? t taxpay] &! .support+
  .p]son "u c]ta9 circum/.es 7see
  p>agraph #ag74 ,= fur!r 9=m,n on   #bb
             ,,it-#die;,r#c          f#d
  ! calcul,n ( .* .c>e .exp5ses &
  examples1 see p>agraphs #ba-bc =!
  g5]al rule & p>agraphs #bd-be =! hi<]
  9come taxpay]4

       ,9come 7p>agraphs #ad-ae7
    
#ad4 ,9 det]m9+ :e!r ! taxpay] or !
  .support+ .p]son _h ! l[] 9come =!
  ye>1 subsec;n #fc7#b7 provides t !
  calcul,n ( 9comes is 6be d"o )\t
  ref];e 6any o!rwise all[a# deduc;ns =3
  --.* .c>e .exp5ses "u sec;n #fc2
  --any b5efit repay;t paya# "u ,"p
    ,,vii (! ,employ;t ,9sur.e ,act on
    or 2f ,april #cj (! foll[+ ye> & :
    is deducti# =! tax,n ye> "u p>agraph
    #fj7v4#a72 or
  --! am.t ( old age secur;y b5efits t
    is requir$ 6be repd =! ye> z tax "u
    ,"p ,i4#b z provid$ 0p>agraph
    #fj7w74
  
                                     #bc
             ,,it-#die;,r#c           #e
  ,p>agraph #c7f7 provides t a taxpay] )
  no 9come =a ye> is deem$ 6h 9come ( an
  am.t equal 6z]o4
#ae4 ,subsec;n #fc7#b.a7 applies :5 !
  9come =! ye> (a taxpay] :o has an
  .eligi# .* &! 9come (a .support+
  .p]son (! * >e equal :5 calculat$ 9 !
  mann] describ$ 9 p>agraph #ad4 ,9 s*
  cases1 subsec;n #fc7#b.a7 provides t
  no .* .c>e .exp5se deduc;n w 2 all[$
  6ei ! taxpay] or 6! .support+ .p]son
  un.s !y jo9tly elect 6tr1t ! 9come (
  "o ( !m z exce$+ ! 9come (! o!r =!
  ye>4 ,! elec;n c 2 made 0hav+ ei !
  taxpay] or ! .support+ .p]son1 b n
  bo?1 claim ! deduc;n4 ,a claim =! .*
  .c>e .exp5se deduc;n is made 0fil+ ,=m
  ,t#ggh1 ,* ,c>e ,exp5ses ,deduc;n 7see
  p>agraph #bh74




                                     #bd
         ,pay] ( * c>e exp5ses       a#e
             7p>agraph #af7
    
#af4 ,subject 6! -;ts 9 p>agraph #ah1 "!
  is g5],y no require;t t ! 9dividual :o
  claims .* .c>e .exp5ses m/ h p]son,y
  pd ^? exp5ses provid$ "! is bo? a
  taxpay] &a .support+ .p]son =! ye> &!
  exp5ses 7 pd 0ei ( ^! 9dividuals4
  ,h["e1 :5 "! is no .support+ .p]son =!
  ye>1 ! taxpay] claim+ .* .c>e .exp5ses
  m/ h pd ^? exp5ses4 ,"u p>agraph
  #fc7#a77d71 no deduc;n may 2 claim$ =
  .* .c>e .exp5ses = : any taxpay] is or
  0 5titl$ 6a reimburse;t or any o!r =m
  ( assi/.e un.s ! reimburse;t or
  assi/.e is 9clud$ 9 a taxpay]'s 9come
  & is n deducti# 9 -put+ t taxpay]'s
  taxa# 9come4

          ,hi<] 9come taxpay]
             7p>agrap #ag7
    
#ag4 ,0virtue ( subsec;n #fc7#b71 !
  taxpay] )! hi<] 9come w 2 all[$    #be
             ,,it-#die;,r#c          b#e
  6deduct .* .c>e .exp5ses "u subsec;n
  #fc7#a7 7see p>agraphs #bd-be7 dur+ !
  p]iod t ! .support+ .p]son )! l[]
  9come was3
  7a7 a /ud5t 9 att5d.e at a .designat$
    .$uc,nal .9/itu;n or second>y s*ool
    7see p>agraph #bg7 & 5roll$ 9 a
    full-"t or "p-"t program 7see
    p>agraph #bj72
  7b7 c]tifi$ 0a m$ical doctor 6be a
    p]son :o
    --0r1son ( m5tal or physical 9firm;y
      & 3f9e;t "?\t a p]iod ( n less ?an
      two weeks 9 ! ye> 6a b$ or 6a
      :eel*air or z a pati5t 9 a
      hospital1 an asylum or o!r simil>
      9/itu;n1 0 9capa# ( c>+ = *n1 or
    --0r1son ( m5tal or physical
      9firm;y1 0 9 ! ye>1 & is likely
      6be =a l;g-3t9u$ p]iod ( 9def9ite
      dur,n1 9capa# ( c>+ = *n2
  7c7 3f9$ 6a prison or simil> 9/itu;n
    "?\t a p]iod ( n less ?an two weeks
    9 ! ye>2 or                      #bf
             ,,it-#die;,r#c          c#e
  7d7 liv+ sep>ate & a"p f ! taxpay] at
    ! 5d (! ye> &=a p]iod ( at l1/ #ij
    "ds 2g9n+ 9 t ye> 2c (a br1kd[n ( _!
    m>riage or .-mon-law ."pn]%ip4
    ,h["e1 s* a claim is valid only if !
    taxpay] )! hi<] 9come pd ^? .* .c>e
    .exp5ses &! p]son )! l[] 9come is a
    .support+ .p]son4 ,z 9dicat$ 9
    p>agraph #aj1 ? requires t ! two
    "pies h3
    --resid$ tgr at "s "t dur+ ! ye>2 &
    --reconcil$ )9 #fj "ds af ! 5d (!
      ye>4
    
     ,2c !y m/ h be5 resid+ tgr at "s "t
    dur+ ! ye> & be5 sep>at$ at ! 5d (!
    ye>1 s* a deduc;n is availa# 6!
    taxpay] )! hi<] 9come only =! tax,n
    ye> 9 : ! sep>,n o3urr$4 ,h["e1 z
    not$ 9 p>agraph #ah1 ? re/ric;n does
    n apply :5 ! p]son )! l[] 9come is n
    a .support+ .p]son4
  
                                     #bg
             ,,it-#die;,r#c          d#e
  ,if any (! situ,ns describ$ 9 7a7 to
  7d7 abv applies1 see p>agraph #bd
  6det]m9e ! maximum am.t t ! taxpay] )!
  hi<] 9come may deduct = .* .c>e
  .exp5ses =a ye>4

  ,draft am5d;ts 6! ,act 7 rel1s$ 9
  ,febru>y #bjjd4 ,if 5act$ z propos$1
  af ,decembe #bj1 #bjjb1 ! m$ical
  doctor's c]tific,n describ$ at
  p>agraph #ag7b7 w h 6be 9 writ+4

          ,sep>,n & %>$ cu/ody
             7p>agraph #ah7
    
#ah4 ,if ! reconcili,n ref]r$ 6in
  p>agraph #ag7d7 does n o3ur1 !
  require;t 9 p>agraph #aj w n 2 met )!
  result t "! w n 2 a .support+ .p]son
  =! ye> ( sep>,n4 ,9 ? case1 .* .c>e
  .exp5ses =! ye> ( sep>,n w 2 all[$
  only 6! 9dividual :o resid$ )! * &
  only 6! ext5t t !y 7 pd 0t 9dividual
  65a# ! 9dividual 65gage 9 "o (!    #bh
             ,,it-#die;,r#c          e#e
  activities li/$ 9 p>agraph #a4 ,:5 "!
  is no qualify+ reconcili,n &! * liv$ )
  ea* p>5t at di6]5t "ts 9 a ye> 7e4g4
  %>$ cu/ody situ,ns71 bo? taxpay]s may
  claim a deduc;n =! ye> z provid$ 9
  p>agraph #ba ) no reduc;n =! am.t
  claim$ 0! o!r taxpay]4 ,9 ^! case1 !
  ,,cra w g5],y 3sid] ea* p>5t 6reside
  )a * :ile ! * is 9 _! cu/ody4 ,assum+
  t nei p>5t is resid+ )a .support+
  .p]son dur+ ! ye>1 ea* p>5t cd claim
  .* .c>e .exp5ses 9curr$ 9 a tax,n ye>
  = an .eligi# .* =! exp5ses 9curr$ 0!
  p>5t =a p]iod dur+ : ! * resid$ )!
  p>5t & only 6! ext5t t !y 7 pd 0t p>5t
  7see p>agraph #af7 6be 5a#d 65gage 9 !
  activities li/$ 9 p>agraph #a4 ,h["e1
  if ! p>5t rem>ries or 5t]s 96a -mon-
  law rel,n%ip ) ano!r p]son s* t ! o!r
  p]son is a .support+ .p]son z describ$
  9 p>agraph #aj1 ! new .support+ .p]son
  may 2 ! "o 5titl$ 6deduct .* .c>e
  .exp5ses4
                                     #bi
         ,/ud5ts 7p>agraph #ai7      f#e
    
#ai4 ,"u subsec;n #fc7#b.b71 a taxpay]
  may 2 5titl$ 6deduct an a4i;nal am.t (
  .* .c>e .exp5ses = .eligi# .*n =
  p]iods dur+ : ! taxpay] 0 a /ud5t
  5roll$ 9 a full-"t or "p-"t program
  7see p>agraph #bj74 ,h["e1 z det]m9$
  "u subsec;n #fc7#b.c71
--------------------------------------#f
  if "! is a .support+ .p]son t p]son m/
  al 2 a /ud5t at ! same "t z ! taxpay]1
  &! taxpay] m/ h ! hi<] 9come =! ye>
  7-put$ z describ$ 9 p>agraph #ad7
  6claim ! a4i;nal am.t ( .* .c>e
  .exp5ses "u subsec;n #fc7#b.b74 ,9 ea*
  case1 ! /ud5t or /ud5ts m/ 2 9 att5d.e
  at a .designat$ .$uc,nal .9/itu;n or
  second>y s*ool 7see p>agraph #bg74 ,!
  deduc;n w v>y dep5d+ on :e!r ! program
  is full-"t or "p-"t4 ,see p>agraphs
  #bf-bg = fur!r 9=m,n on ! calcul,n (
  .* .c>e .exp5ses = /ud5ts4

                                     #cj
       ,full-"t & "p-"t programs     a#f
             7p>agraph #bj7
    
#bj4 ,a full-"t program is "o t has 6la/
  at l1/ #c 3secutive weeks & requires t
  ea* /ud5t 9 ! program sp5d at l1/ #aj
  h\rs p] week on c\rses or "w 9 !
  program4 ,a "p-"t program is "o t al
  has 6la/ at l1/ #c 3secutive weeks &
  requires t ea* /ud5t 9 ! program sp5d
  at l1/ #ab h\rs p] mon? on c\rses4

            ,maximum deduc;n
    
       ,g5]al rule 7p>agraph #ba7
    
#ba4 ,a taxpay] may claim less ?an !
  maximum am.t all[$ "u subsec;n #fc7#a7
  :5 x is advantage\s =! taxpay] 6d s
  7see p>agraphs #cj-ca74 ,x is n
  possi#1 h["e1 6c>ry =w>d unclaim$
  exp5ses 6a subsequ5t tax,n ye>4 ,!
  deduc;n availa# "u subsec;n #fc7#a7 is
  limit$ 6a maximum ( 4#aj1jjj1 4#g1jjj
  or 4#d1jjj p] .eligi# .*1 dep5d+   #ca
             ,,it-#die;,r#c          b#f
  on ! circum/.es4 ,an am.t is n
  deducti# 0! taxpay] if x is 9clud$ 9
  -put+ deducti# .* .c>e .exp5ses = "s"o
  else4

  ,z not$ 9 p>agraph #ac7a71 7b7 &
  p>agraph #af1 .* .c>e .exp5ses may 2
  deduct$ by3
  --! taxpay] :5 "! is no .support+
    .p]son2 or
  --! taxpay] )! l[] 9come :5 "! is a
    taxpay] &a .support+ .p]son &!
    circum/.es describ$ 9 p>agraph
    #ag7a7 to 7c7 d n apply4
  
  ,9 ei ( ^! cases1 ! am.t deducti# 0a
  taxpay] 9 any "picul> ye> is limit$ 6!
  l1/ ( ;,a & ;,b4

  ;,a is ! am.t pd 0! taxpay] or
    .support+ .p]son z or on a3.t ( .*
    .c>e .exp5ses 7see p>agraphs #a-f7
    9curr$ = s]vices r5d]$ 9 ! ye>1 & t
    is n alr 9clud$ z an am.t        #cb
             ,,it-#die;,r#c          c#f
    deducti# "u subsec;n #fc7#a7 0an
    9dividual o!r ?an ! taxpay]4 ,h["e1
    pursuant 6p>agraph #fc7#a77d71 no
    deduc;n may 2 claim$ = .* .c>e
    .exp5ses = : any taxpay] is or 0
    5titl$ 6a reimburse;t or any o!r =m
    ( assi/.e un.s ! reimburse;t or
    assi/.e is 9clud$ 9 a taxpay]'s
    9come & is n deducti# 9 -put+ t
    taxpay]'s taxa# 9come4
  ;,b is ! am.t1 if any1 0: ! less] (
    7,i7 two-?irds (! taxpay]'s .e>n$
      .9come 7see p>agraph #bb7 =! ye>2
      &
     7,,ii7 ! total ( all am.ts1 ea* ( :
      is ! ..annual * c>e exp5se .am.t
      7see p>agraph #aa7 9 respect ( an
      .eligi# .* 7see p>agraph #g7 (!
      taxpay] =! ye>2
    exce$s
    7,,iii7 am.ts deduct$ "u sec;n #fc
      =! ye> 9 respect (! taxpay]'s
      eligi# *n 0an 9dividual1 o!r ?an !
      taxpay]1 6:om subsec;n         #cc
             ,,it-#die;,r#c          d#f
      #fc7#b7 applies 7i4e4 ! hi<] 9come
      taxpay]74
    
  ,! am.t deducti# 0! taxpay] or
  .support+ .p]son )! hi<] 9come may 2
  fur!r limit$ z expla9$ 9 p>agraphs
  #bd-be4

       ,e>n$ 9come 7p>agraph #bb7
    
#bb4 ,z 9dicat$ 9 p>agraph #ba "u !
  g5]al rule1 a taxpay]'s claim = .*
  .c>e .exp5ses =a ye> _c exce$ two-
  ?irds (! taxpay]'s .e>n$ .9come = t
  ye>4 .,e>n$ .9come (a taxpay] =!
  purposes (! .* .c>e .exp5se deduc;n is
  def9$ 9 subsec;n #fc7#c74 .,e>n$
  .9come 3si/s (3
  7a7 a 4abil;y p5.n rcvd "u ! ,canada
    ,p5.n ,plan or ! ,quebec ,p5.n
    ,plan2
  7b7 all sal>ies1 wages1 tips1 & o!r
    remun],n f an (fice or employ;t2
                                     #cd
             ,,it-#die;,r#c          e#f
  7c7 all am.ts 9clud$ 9 -put+ employ;t
    9come 0virtue ( sec;ns #f & #g
    7employ;t b5efits & employee /ock
    op;n b5efits72
  7d7 all s*ol>%ips1 fell[%ips1
    burs>ies1 prizes & rese>* grants 6!
    ext5t !y >e 9clud$ 9 9come "u
    p>agraph #ef7#a77n7 or 7o72
  7e7 any gov]n;tal f9ancial assi/.e z
    def9$ "u p>agraph #ef7#a77r72 &
  7f7 9comes 7exclud+ losses7 f all
    busi;ses c>ri$ on al"o or z a "pn]
    actively 5gag$ 9 ! busi;s (!
    "pn]%ip4 ,g5],y1 an actively 5gag$
    "pn] is "o :o 3tributes "t1 lab\r &
    att5;n 6! "pn]%ip busi;s &! quant;y
    & qual;y (! "pn]'s ef=ts >e expect$
    6be factors 9 det]m9+ ! am.t (
    "pn]%ip pr(its4

  ,! am.ts describ$ 9 7b7 to 7f7 abv >e
  6be tak5 96a3.t 9 calculat+ a
  taxpay]'s .e>n$ .9come ev5 ?\< ^!
  am.ts1 0r1son ( p>agraph           #ce
             ,,it-#die;,r#c          f#f
  #ha7#a77a7 7/atutory exemp;ns7 or
  subsec;n #ha7#d7 7pay;ts = volunte]
  s]vices71 may n 2 requir$ 6be 9clud$ 9
  9come4

        ,example 7p>agraph #bc7
    
#bc4 ,assume t = #bjjc ! p>5t )! l[]
  9come
  --pd total * c>e exp5ses ( 4#ae1jjj =
    s]vices r5d]$ = ?ree eligi# *n :o 7
    all "u ! age ( #g ye>s at ! 5d (!
    ye>2
  --_h e>n$ 9come ( 4#bg1jjj2 &
--------------------------------------#g
  --was n 5titl$ 6assi/.e 9 respect (!
    am.t pd = * c>e exp5ses1 nor 0 any
    o!r taxpay]4
  
  ,"u subsec;n #fc 7#a7 no o!r taxpay]
  9clud$ 9 -put+ an am.t deducti# ! am.t
  pd = * c>e exp5ses4

                                     #cf
             ,,it-#die;,r#c          a#g
  ,less] ( ;,a & ;,b ":
;,a is ! am.t pd = *
  c>e exp5ses """"""""""""""""" 4#ae1jjj
;,b is ! am.t1 if
  any1 0: ! less] (
  7,i7 #b ov] #c (!
    taxpay]'s e>n$
    9come 7#b ov] #c
    "ts 4#bg1jjj7 """ 4#ah1jjj
  7,,ii7 ! total (
    all annual * c>e
    exp5se am.ts =
    #c *n "u #g3
    4#g1jjj "ts #c
    eligi# *n """"""" 4#ba1jjj
  exce$s
  7,,iii7 am.ts
    deduct$ "u sec;n
    #fc =! ye> 9
    respect (!
    taxpay]'s eligi#
    *n 0! hi<] 9come
    taxpay] """""""""""""" nil  4#ah1jjj
                                     #cg
             ,,it-#die;,r#c          b#g
  ,"!=e1 ! less] ( ;,a & ;,b is
  4#ae1jjj1 s ! full am.t exp5d$ on
  2half (! ?ree *n is deducti# 9 -put+ !
  9come (! p>5t )! l[] 9come = #bjjc4

     ,deductibil;y ( * c>e exp5ses
         0! hi<] 9come taxpay]
             7p>agraph #bd7
    
#bd4 ,:5 an am.t pd z or on a3.t ( .*
  .c>e .exp5ses is deducti# 0! taxpay]
  )! hi<] 9come or "ply 0bo? t taxpay]
  &! .support+ .p]son1 ! am.t deducti#
  0! hi<] 9come taxpay] "u subsec;n
  #fc7#a7 is limit$ 6! less] (3
  --! am.t -put$ "u p>agraph #fc7#b77a7
    7: is ! am.t t wd o!rwise 2 deducti#
    0! hi<] 9come taxpay] =! ye> us+ !
    =mula 7less] ( ;,a & ;,b7 4cuss$ 9
    p>agraph #ba72 &
  --! am.t -put$ "u p>agraph #fc7#b77b74
  
  ,! am.t -put$ "u p>agraph #fc7#b77b7
  is ! total ( all p]iodic * c>e     #ch
             ,,it-#die;,r#c          c#g
  exp5se am.ts 7see p>agraph #ab7
  multipli$ 0! total (
  --! numb] ( weeks 9 ! ye> dur+ : ! .*
    .c>e .exp5ses 7 9curr$ & "?\t : !
    .support+ .p]son 7)! l[] 9come7 0
    --a full-"t /ud5t 7see p>agraph #bj7
      9 att5d.e at a .designat$ .$uc,nal
      .9/itu;n or second>y s*ool 7see
      p>agraph #bg71 or
    --a p]son z describ$ 9 p>agraph
      #ag7b7 to 7d72 &
    --! numb] ( mon?s 9 ! ye> dur+ : !
      .* .c>e .exp5ses 7 9curr$ &!
      .support+ .p]son 7)! l[] 9come7 0
      a "p-"t /ud5t 7see p>agraph #bj7 9
      att5d.e at a .designat$ .$uc,nal
      .9/itu;n or second>y s*ool 7see
      p>agraph #bg7 &= : weeks or "p
      weeks 7 n 9clud$ 9 ! prec$+
      calcul,n4
    
  ,if ! am.t pd = .* .c>e .exp5ses
  exce$s ! am.t deduct$ 0! hi<] 9come
  taxpay]1 ! .support+ .p]son may    #ci
             ,,it-#die;,r#c          d#g
  claim ! excess 6! ext5t p]mitt$
  0subsec;n #fc7#a74 ,9 a4i;n 6! abv
  limit,ns1 claims = .* .c>e .exp5ses :5
  "! has be5 a sep>,n & reconcili,n z
  describ$ 9 p>agraph #ag7d7 >e subject
  6! -;ts 9 p>agraph #ah4

        ,example 7p>agraph #be7
    
#be4 ,gw5 & ,david h #c *n :o 7 "u ! age
  ( #g ye>s at ! 5d ( #bjjc4 ,!y pd *
  c>e exp5ses ( 4#ac1jjj = s]vices r5d]$
  9 #bjjc4 ,no "o 0 5titl$ 6any
  reimburse;t ) respect 6? am.t4 ,gw5 &
  ,david _h e>n$ 9come ( 4#de1jjj &
  4#bg1jjj1 respectively1 = #bjjc4
  ,david 0 a full-"t /ud5t 9 att5d.e at
  a .designat$ .$uc,nal .9/itu;n = #af
  weeks 9 #bjjc4 ,gw5 w calculate h]
  maximum * c>e exp5se deduc;n f/1 2c %e
  is 9 a hi<] tax bracket1 & ,david w
  calculate 8 af4

                                     #dj
             ,,it-#die;,r#c          e#g
  ,hi<] ,9come ,taxpay]
  ,less] ( am.ts -put$ "u p>agraphs
  #fc7#b77a7 & 7b73

  ,am.t -put$ "u p>agraph #fc7#b77a7
  7see p>agraph #bd7

  ,less] ( ;,a & ;,b ":

;,a is ! am.t pd = *
  c>e exp5ses """"""""""""""""" 4#ac1jjj
;,b is ! less] (
  7,i7 #b ov] #c (
    ,gw5's e>n$
    9come 7#b ov] #c
    "ts 4#de1jjj7 """ 4#cj1jjj
  7,,ii7 ! total (
    all annual * c>e
    exp5se am.ts =
    #c *n "u #g3
    4#g1jjj "ts #c
    eligi# *n """"""" 4#ba1jjj
  less] ( 7,i7 & 7,,ii7 """"""" 4#ba1jjj
                                     #da
             ,,it-#die;,r#c          f#g
  ,less] ( ;,a & ;,b """""""""" 4#ac1jjj
  
    ,am.t -put$ "u
    p>agraph #fc7#b77b7
    7see p>agraph #bd7
  ,total p]iodic * c>e
    exp5se am.ts
    7#a ov] #dj "ts
    4#ba1jjj7 """""""""""""""""""" 4#ebe
  ,multipli$ 0! numb] (
    weeks 9 #bjjc t
    ,david 0 a full-"t
    /ud5t """""""""""""""""""""""""" #af
  74#ebe "ts #af7 """""""""""""" 4#h1djj
  
  ,gw5's maximum * c>e exp5se deduc;n "u
  subsec;n #fc7#a7 = #bjjc is "!=e
  4#h1djj 2c ! am.t -put$ "u p>agraph
  #fc7#b77b7 is less ?an ! am.t -put$ "u
  p>agraph #fc7#b77a74



                                     #db
             ,,it-#die;,r#c           #h
  ,l[] ,9come ,taxpay]

  ,assum+ t ,gw5 deducts * c>e exp5ses (
  4#h1djj = #bjjc1 ,david's maximum
  deduc;n = * c>e exp5ses is calculat$ z
  foll[s "u subsec;n #fc7#a7 7see
  p>agraph #ba73

  ,less] ( ;,a & ;,b ":
;,a is ! am.t pd = * c>e
  exp5ses """"""""""""""""""""" 4#ac1jjj
less ! am.t deducti# 0,gw5 "u
  subsec;n #fc7#a7 """"""""""""" 4#h1djj
74#ac1jjj m9us 4#h1djj7 """""""" 4#d1fjj

;,b is ! less] (
  7,i7 #b ov] #c (
    ,david's e>n$
    9come 7#b ov]
     #c "ts
    4#bg1jjj7 """"""" 4#ah1jjj
  7,,ii7 ! total (
    all annual * c>e
    exp5se am.ts =                   #dc
             ,,it-#die;,r#c          a#h
    #c *n "u #g3
    4#g1jjj "ts #c
    eligi# *n """"""" 4#ba1jjj
  less] ( 7,i7 &
    7,,ii7 """""""""""""""""""" 4#ah1jjj
  m9us
  7,,iii7 am.t deduct$ 0,gw5
    "u sec;n #fc """"""""""""""" 4#h1djj
  74#ah1jjj m9us 4#i1fjj7 """""" 4#i1fjj
  
  ,david c deduct a maximum ( 4#d1fjj =
  * c>e exp5ses = #bjjc1 : is ! less] (
  ;,a & ;,b4

  ,! 4#ac1jjj pd 0? family = * c>e
  s]vices r5d]$ 9 #bjjc is fully
  deducti# 74#h1djj 0,gw5 plus 4#d1fjj
  0,david74

      ,* c>e exp5ses :ile at s*ool
             7p>agraph #bf7
    
#bf4 ,9 a4i;n 6am.ts : may 2 deducti# "u
  ei ! g5]al rule at p>agraph #ba    #dd
             ,,it-#die;,r#c          b#h
  or 0! hi<] 9come taxpay] at p>agraph
  #bd1 a taxpay] may 2 5titl$ 6claim an
  am.t ( .* .c>e .exp5ses = .eligi# .*n
  "u subsec;n #fc7#b.b7 7see p>agraph
  #ai7 = p]iods dur+ : ! taxpay] 0 a
  /ud5t 9 att5d.e at a .designat$
  .$uc,nal .9/itu;n or second>y s*ool
  7see p>agraph #bg7 5roll$ 9 a full-"t
  or "p-"t program 7see p>agraph #bj74
  ,see ,=m ,t#ggh1 ,* ,c>e ,exp5ses
  ,deduc;n = assi/.e 9 calculat+ ! am.t
  availa# 6a "picul> taxpay] 7z 4cuss$ 9
  p>agraph #bh74

  ,! deduc;n = .* .c>e .exp5ses ": a
  taxpay] is a /ud5t is limit$ "u
  subsec;n #fc7#b.c7 6! l1/ (! foll[+
  am.ts3
  7;i7 ! am.t pd = * c>e exp5ses 9curr$
    = s]vices r5d]$ 9 ! ye> = eligi# *n
    less ! am.t : is deducti# 0! taxpay]
    "u subsec;n #fc7#a7 =! ye> 7see
    p>agraphs #ba & #bd72
                                     #de
             ,,it-#die;,r#c          c#h
  7;ii7 two-?irds (! taxpay]'s 9come =!
    ye> -put$ z describ$ 9 p>agraph #ad2
  7;iii7 ! am.t det]m9$ 0! =mula ;,a
    multipli$ 0;,c
    --": ;,a repres5ts ! total ( all !
      p]iodic * c>e exp5se am.ts 7see
      p>agraph #ab7 = all .eligi# .*n
      7see p>agraph #g7 (! taxpay] =!
      ye>
    --& ;,c repres5ts3
    
      ": "! is a .support+ .p]son 7see
      p>agraph #aj7 ( an .eligi# .* )a
      l[] 9come 7-put$ z describ$ 9
      p>agraph #ad7 ?an ! taxpay]'s =!
      ye>3
      7a7 ! numb] ( weeks 9 ! ye> dur+ :
        bo? ! taxpay] &! .support+
        .p]son 7 /ud5ts 9 att5d.e at a
        .designat$ .$uc,nal .9/itu;n or
        second>y s*ool 5roll$ 9 full-"t
        programs1
      plus
                                     #df
             ,,it-#die;,r#c          d#h
      7b7 ! numb] ( mon?s 7= : weeks or
        "p weeks >e n 9clud$ 9 7a77 t
        bo? ! taxpay] &! .support+
        .p]son 7 /ud5ts 9 att5d.e at a
        .designat$ .$uc,nal .9/itu;n or
        second>y s*ool 5roll$ 9 full-"t
        or "p-"t programs dur+ ! ye>2 &
      
      ": "! is no .support+ .p]son ( an
      .eligi# .* =! ye>3
      7c7 ! numb] ( weeks 9 ! ye> dur+ :
        ! taxpay] 0 a /ud5t 9 att5d.e at
        a .designat$ .$uc,nal .9/itu;n
        or second>y s*ool 5roll$ 9 a
        full-"t program1
      plus
      7d7 ! numb] ( mon?s 7= : weeks or
        "p weeks >e n 9clud$ 9 7c77 t !
        taxpay] 0 a /ud5t 9 att5d.e at a
        .designat$ .$uc,nal .9/itu;n or
        second>y s*ool 5roll$ 9 a "p-"t
        program dur+ ! ye>2
  7;iv7 ! am.t 0: ! total annual * c>e
    exp5se am.ts =! ye> 7see         #dg
             ,,it-#die;,r#c          e#h
    p>agraph #aa7 9 respect (! taxpay]'s
    .eligi# .*n exce$ ! am.t t is
    deducti# 0! taxpay] =! ye> "u
    subsec;n #fc7#a72 &
  7;v7 ": "! is a .support+ .p]son ( an
    .eligi# .* )a l[] 9come 7-put$ z
    describ$ 9 p>agraph #ad71 ! am.t 0:
    ! am.t calculat$ "u p>agraph
    #fc7#b77b7 =! ye> =! hi<] 9come
    taxpay] exce$s two-?irds (! hi<]
    9come taxpay]'s .e>n$ .9come =! ye>
    7see p>agraphs #ag1 #bb & #bd74
--------------------------------------#i
       ,designat$ $uc,nal 9/itu;n
             7p>agraph #bg7
    
#bg4 .,designat$ .$uc,nal .9/itu;n1 z
  def9$ 9 subsec;n #aah.f7#a71 m1ns any
  (! foll[+3
  7a7 a univ]s;y1 college1 or o!r
    $uc,nal 9/itu;n 9 ,canada t has be5
    designat$ 0! ,lieut5ant ,gov]nor 9
    ,c\ncil (a prov9ce z a specifi$
    $uc,nal 9/itu;n "u ! ,canada     #dh
             ,,it-#die;,r#c          a#i
    ,/ud5t ,loans ,act1 designat$ 0an
    appropriate au?or;y "u ! ,canada
    ,/ud5t ,f9ancial ,assi/.e ,act1 or
    designat$ 0! ,m9i/] ( ,hi<] ,$uc,n &
    ,sci;e (! prov9ce ( ,quebec =!
    purposes ( ,an ,act respect+
    f9ancial assi/.e = /ud5ts (! prov9ce
    ( ,quebec2 or
  7b7 an $uc,nal 9/itu;n 9 ,canada
    c]tifi$ 0! ,m9i/] ( ,human ,res\rces
    ,develop;t z "o provid+ c\rses1 o!r
    ?an c\rses design$ = univ]s;y cr$it1
    t furni% or improve o3up,nal skills2
    or
  7c7 a univ]s;y \tside ,canada at : !
    /ud5t = :om ! $uc,n tax cr$it is
    det]m9$ is 5roll$ 9 a c\rse ( at l1/
    #ac 3secutive weeks dur,n1 l1d+ 6a
    degree n l[] ?an ! ba*elor or
    equival5t level2 or
  7d7 a univ]s;y1 college or o!r $uc,nal
    9/itu;n 9 ! ,unit$ ,/ates provid+
    c\rses at ! po/-second>y s*ool level
    if ! /ud5t = :om ! $uc,n tax     #di
             ,,it-#die;,r#c          b#i
    cr$it is det]m9$ resides "?\t ! ye>
    9 ,canada ne> ! bord] 2t ,canada &!
    ,unit$ ,/ates & -mutes 6t $uc,nal
    9/itu;n4
  
,note3
  ,draft am5d;ts 6! ,act 7 rel1s$ 9
  ,febru>y #bjjd4 ,propos$ am5d;ts
  6subp>agraph 7a77;i7 (! def9i;n (
  8designat$ $uc,nal 9/itu;n0 9 subsec;n
  #aah.f7#a71 if 5act$1 wd apply 6!
  #aiih & subsequ5t tax,n ye>s4 ,"u
  p>agraph #bg7a71 ! responsi# ,quebec
  m9i/] wd 2 re"nd 6! ,m9i/] ( ,$uc,n (!
  prov9ce ( ,quebec &! ,quebec /atute wd
  2 re"nd z an ,act respect+ f9ancial
  assi/.e = $uc,n exp5ses1 ,r4,s4,q41 c4
  ;,a-#ac.c4

         ,=m ,t#ggh & receipts
             7p>agraph #bh7
    
#bh4 ,a claim = .* .c>e .exp5ses is made
  0fil+ )! claimant's return a       #ej
             ,,it-#die;,r#c          c#i
  -plet$ ,=m ,t#ggh1 ,* ,c>e ,exp5ses
  ,deduc;n4 ,receipts = * c>e exp5ses >e
  n requir$ 6be s5t )! claimant's
  return4 ,:5 ! claimant's return is
  fil$ electronic,y 78;,e-fil$071 !
  require;t 6file ,=m ,t#ggh is al
  waiv$4 ,h["e1 ^! docu;ts %d n"e!.s 2
  reta9$ & r1dily availa# z ! ,,cra has
  ! au?or;y "u subsec;n #bbj7#b.a7
  6subsequ5tly reque/ !m z pro( (!
  claims 2+ made or 9 support (! 9=m,n
  2+ report$4

  ,e receipt = .* .c>e .exp5ses %d 2
  made \ 6! 9dividual :o pd ! * c>e
  exp5ses4 ,:5 ! * c>e s]vices >e
  provid$ 0an 9dividual resid5t 9
  ,canada1 ! receipt m/ %[ ! c>egiv]'s
  social 9sur.e numb]4
  ,o!r situ,ns 7p>agraph #bi7
#bi4 ,! def9i;n ( .* .c>e .exp5se 9
  subsec;n #fc7#c7 requires t ! exp5se 2
  9curr$ = * c>e s]vices provid$ 9
                                     #ea
             ,,it-#die;,r#c          d#i
  ,canada 0a resid5t ( ,canada4 ,h["e1
  "! >e two excep;ns 6? rule3
  --,"u sec;n #fd.a1 a taxpay] :o is1
    "?\t all or a "p (a tax,n ye>1 n
    physic,y pres5t 9 ,canada1 b :o
    n"e!.s 3t9ues 6be resid5t 9 ,canada
    = 9come tax purposes 7i4e41 a
    factual or a deem$ resid5t (
    ,canada71 is n subject 6! 8in
    ,canada0 require;t4 ,acly1 s* a
    taxpay] is all[$ 6deduct pay;ts = *
    c>e s]vices provid$ \tside ,canada
    0a non-resid5t if ! o!r require;ts 9
    sec;n #fc >e met4
  --,in c]ta9 circum/.es1 subsec;n
    #fc7#d7 deems am.ts pd = * c>e
    s]vices provid$ 9 ! ,unit$ ,/ates 6a
    taxpay] resid+ 9 ,canada ne> !
    ,canada-,unit$ ,/ates b.d>y 6be
    eligi# .* .c>e .exp5ses =! purposes
    ( sec;n #fc4 ,! * c>e s]vices m/ 2
    provid$ at a place t is clos] 6!
    taxpay]'s pr9cipal place ( resid;e
    0a r1sonably a3essi# r\te1       #eb
             ,,it-#die;,r#c          e#i
    hav+ reg>d 6! circum/.es1 ?an any
    place 9 ,canada ": s* * c>e s]vices
    >e availa#4 ,subsec;n #fc7#d7 does n
    apply 6exp5ses pd =a *'s att5d.e at
    a bo>d+ s*ool or camp \tside
    ,canada4
  
     ,impact ( * c>e exp5se claims
    
         ,* tax b5efit supple;t
             7p>agraph #cj7
    
#cj4 ,a claim = .* .c>e .exp5ses "u
  sec;n #fc may reduce an 9dividual's
  5title;t 6! * tax b5efit supple;t "u
  subsec;n #abb.fa7#a74 ,! supple;t1 :
  is availa# = ea* qualifi$ dep5dant :o
  is "u #g ye>s ( age at ! />t ( ea*
  mon?1 is reduc$ 0#be@3p (! * c>e
  exp5ses deduct$ "u sec;n #fc = all
  qualifi$ dep5dants 0! 9dividual or !
  9dividual's 8cohabit+ sp\se or -mon-
  law "pn]0 7z def9$ 9 sec;n #abb.f74
                                     #ec
      ,4abil;y tax cr$it supple;t    f#i
             7p>agraph #ca7
    
#ca4 ,a claim = .* .c>e .exp5ses "u
  sec;n #fc may reduce an 9dividual's
  5title;t 6a 4abil;y tax cr$it supple;t
  "u subsec;n #aah.c7#a71 : is availa# =
  c]ta9 9dividuals "u #ah ye>s ( age at
  ! 5d (! ye> :o h a sev]e & prol;g$
  m5tal or physical impair;t4 ,!
  supple;t is reduc$ 0! excess1 ov] a
  c]ta9 ?re%old1 (! total * c>e exp5ses
  pd 9 ! ye> & claim$ = 9come tax
  purposes 9 respect (! *4










                                     #ed
          ,explan,n ( ,*anges        #aj
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ 9t]pret,ns
(! ,,cra4

           ,r1sons =! ,revi.n
    
  ,? bullet9 updates ! =m] ,,it-
#die;,r#b1 : 4cuss$ ! 9come tax tr1t;t (
.* .c>e .exp5ses4 ,x has be5 revis$
prim>ily 6reflect am5d;ts 9 ! ,9come
,tax ,act up 6& 9clud+ ,s4,c4 #bjjd1 c4
#bd4

      ,legislative & ,o!r ,*anges
    
  ,*anges 6! ,summ>y reflect new maximum
am.ts t may 2 deduct$ = .* .c>e .exp5ses
= .eligi# .*n4                       #ee
             ,,it-#die;,r#c         a#aj
  ,p>agraph #a has be5 revis$ pursuant
6! new def9i;n ( .* .c>e .exp5se at
subsec;n #fc7#c74
  ,new p>agraph #d 4cusses ! t]m "d
sports s*ool4
  ,p>agraph #e 7=m] p>agraph #c7 9cludes
a ref];e 6! new ..p]iodic * c>e exp5se
.am.t4
  ,p>agraph #g 7=m] p>agraph #e7
reflects ! am5d;t 6! def9i;n ( .eligi#
.*1 : raises ! qualify+ age 6#af4
  ,new p>agraph #i def9es sp\se & .-mon-
law ."pn]4 ,ref];es 6-mon-law "pn]s h
be5 a4$ "?\t ! bullet94 ,draft am5d;ts
:1 if 5act$1 w revise ! def9i;n ( .-mon-
law ."pn] =! #bjja & subsequ5t tax,n
ye>s >e 4cuss$ 9 an italiciz$ note4
  ,new p>agraph #aa 4cusses ! new
..annual * c>e exp5se .am.t4
  ,new p>agraph #ab expla9s ! new
..p]iodic * c>e exp5se .am.t4
  ,p>agraph #ag 7=m] p>agraph #ab7
reflects am5d$ subsec;n #fc7#b7 : all[s
! hi<] 9come taxpay] 6deduct .*      #ef
             ,,it-#die;,r#c         b#aj
.c>e .exp5ses dur+ a p]iod :5 !
.support+ .p]son )! l[] 9come 0 a /ud5t
9 att5d.e at a .designat$ .$uc,nal
.9/itu;n or second>y s*ool & 5roll$ 9 a
"p-"t $uc,nal program4 ,draft am5d;ts :1
if 5act$1 w require t c]tific,ns 0m$ical
doctors z describ$ at p>agraph #ag7b7 2
9 writ+ >e 4cuss$ 9 an italiciz$ note4
  ,p>agraph #ah 7=m] p>agraph #ac7
provides an exp&$ 4cus.n ( .* .c>e
.exp5se deductibil;y 9 %>$ cu/ody
situ,ns4
  ,new p>agraphs #ai & #bf h be5 a4$
6expla9 h[ a4i;nal .* .c>e .exp5ses =
p]iods dur+ : ! taxpay] 0 a /ud5t 9
att5d.e at a .designat$ .$uc,nal
.9/itu;n or second>y s*ool 5roll$ 9 a
full-"t or "p-"t program may n[ 2
deducti# "u subsec;n #fc7#b.b74
  ,new p>agraph #bj 4cusses full-"t &
"p-"t programs4
  ,p>agraph #ba 7=m] p>agraph #ad7 has
be5 revis$ 6reflect ! *anges 6! g5]al
                                     #eg
             ,,it-#die;,r#c         c#aj
calcul,n ( .* .c>e .exp5ses deducti# "u
subsec;n #fc7#a74
  ,p>agraph #bb 7=m] p>agraph #ag7 has
be5 revis$ 69clude1 9 ! def9i;n ( .e>n$
.9come1 gov]n;tal f9ancial assi/.e1
fell[%ips & prizes4 ,subsec;n #ha7#d7
pay;ts = volunte] s]vices1 : may 2
exclud$ f 9come1 may 2 9clud$ 9 ! .e>n$
.9come calcul,n if !y >e o!rwise eligi#
am.ts z describ$ 9 ? p>agraph4
  ,p>agraph #bd 7"p ( =m] p>agraph #ae7
has be5 modifi$ 6reflect ! new calcul,n
( .* .c>e .exp5ses =! hi<] 9come
taxpay]1 : may 2 limit$ "u subsec;n
#fc7#b74
  ,new p>agraph #bg provides a def9i;n
(! t]m .designat$ .$uc,nal .9/itu;n4
,draft am5d;ts :1 if 5act$1 w revise !
def9i;n =! #aiih & subsequ5t tax,n ye>s
>e 4cuss$ 9 an italiciz$ note4
  ,new p>agraph #ca is a 4cus.n ( an
9dividual's 5title;t 6! 4abil;y tax
cr$it supple;t "u subsec;n #aah.c7#a7 :
                                     #eh
             ,,it-#die;,r#c         d#aj
may 2 reduc$ 0claims = .* .c>e .exp5ses
"u sec;n #fc4
  ,"?\t ! bullet91 we h made o!r *anges
= cl>ific,n or r1dabil;y purposes4



















                                     #ei