Canada Revenue Agency
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Common adjustments
Here are tips from three of our review programs, Pre-assessment Review, Processing Review, and Matching. Following these tips should help reduce the number of adjustments we make to returns each year. For more information, including obtaining the forms, guides, and publications relating to the common adjustments listed below, visit the link to each topic.
Topics
- No reply received
- Note to students
- What if you don't have all your information slips or receipts?
- Retiring allowances - Line 130
- RRSP deduction - Line 208
- Annual union, professional, or like dues - Line 212
- Moving expenses - Line 219
- Other deductions - Line 232
- Northern residents deductions - Line 255
- Additional deductions - Line 256
- Amount for an eligible dependant - Line 305
- Caregiver amount - Line 315
- Interest paid on student loans - Line 319
- Tuition fees - Line 320 of Schedule 11
- Education and textbook amounts - Lines 321-322 of Schedule 11
- Line 324, Tuition, education, and textbook amounts transferred from a child
- Transferring tuition, education, and textbook amounts - Line 327 of Schedule 11
- Medical expenses - Lines 330 and 331
- Public transit amount - Line 364
- Amount for children born in 1993 or later - Line 367
- Federal foreign tax credit - Line 405 of Form T2209
- Ontario Credit - Occupancy Cost - Line 6116 of Form ON479
No reply received
If you do not provide the information requested by the due date, we could refuse or modify the credits and deductions you have requested based on the information available to us.
Note to students
Due to changes that may occur to your mailing address during the year, our mail could unknowingly be misdirected. Sometimes, this results in credits being disallowed on your return, and in an amount owing. Therefore, always make sure the CRA has your current mailing address.
You may wish to provide authorization for us to contact another individual if additional information is required.
How to authorize or change your representative
What if you don't have all your information slips?
Do not delay filing a return because of missing T4 or other information slips. If you cannot get the missing slip(s) by the due date, use any pay stubs or statements you may have to estimate the income to report and any related deductions and credits you can claim. If your return is selected for review either before or after it is assessed and we contact you, all requested receipts and any other supporting documentation must be provided. Otherwise your claim may be reduced or disallowed.
Retiring allowances - Line 130
Include the full amount of all retiring allowances as income on line 130. If some or all of a retiring allowance was transferred into an RRSP, the transferred amount should be shown as a deduction on lines 240 and 245 of Schedule 7.
Transferring retiring allowances or a severance pay
RRSP deduction - Line 208
If you are filing a paper return, include your official receipts for all amounts you contributed from March 2, 2011, to February 29, 2012, including those you are not deducting on your return for 2011.
If you deduct an amount for 2011 that you contributed to an RRSP from March 2, 1996, to March 1, 2011, that you had not previously deducted, you should have completed and filed a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, for those contributions. If you did not, submit a completed Schedule 7, along with the appropriate RRSP receipts, to your tax centre, separate from your 2011 return.
Annual union, professional, or like dues - Line 212
Be sure not to claim the same amount twice. Your employer may have shown the dues withheld from your pay for the year on your T4 slip and the association or organization also may have issued you a receipt for these same dues. Make sure that the amount is only claimed once.
If you are claiming amounts greater than the amount included on your T4 slip, a breakdown of the amounts from the union with an explanation of the purpose of the payments is required.
Eligible amounts are only deductible in the year that you paid them, regardless of the year to which the dues relate.
If you have been reimbursed, or if you were entitled to be reimbursed from any source for the amount of the dues, then you cannot claim any of the dues that were reimbursed. However, if you have paid professional membership dues that have been reimbursed by your employer, the dues would be deductible providing that your employer has included them as a taxable benefit in your income.
Note
Amounts paid for items such as courses, lectures, conventions, and seminars are not eligible for deduction as union dues.
Line 212 - Annual union, professional, or like dues
Moving expenses - Line 219
You can claim eligible moving expenses if your new residence is at least 40 km (by the shortest public route) closer to your new place of work than what your previous residence is to this new place of work. These expenses are only deductible against the employment or self-employment income you earned at the new work location (which usually must be in Canada).
If you have received a reimbursement for some or all of your moving expenses but have not included the reimbursement in your income, you can only claim a deduction for the eligible moving expenses minus the amount of the reimbursement.
If you are a student who moves to take full-time courses at the post-secondary level, you can claim eligible moving expenses if your new residence is at least 40 km (by the shortest public route) closer to your new place of study than what your previous residence is to this new place of study. These expenses are only deductible from taxable award income (scholarships, fellowships, bursaries, certain prizes, and research grants) included in your income.
Legal fees, and any taxes paid, other than the goods and services tax or property taxes, for the transfer or registration of title of a new residence are not eligible for deduction, unless the former residence was sold as a result of the move.
The following are some examples of costs which are not deductible as moving expenses:
- Canada Post mail-forwarding costs;
- expenses for work done to make your old home more saleable;
- any loss from the sale of your old home; or
- expenses for house-hunting or job-hunting trips before you move.
Other deductions - Line 232
Legal expenses incurred by a payer to establish, contest, or negotiate payment of spousal or support amounts are not eligible for deduction. Legal costs for actions to obtain a divorce or custody of or visitation rights to children are also not deductible.
Various non-deductible items such as funeral expenses, wedding expenses, loans to family members, a loss on the sale of a home, and other similar amounts are sometimes claimed in error at this line and subsequently disallowed. If you would like additional information regarding whether a particular expense is deductible, contact us.
Northern residents deductions - Line 255
If you resided in a prescribed zone for a continuous period of at least six months, you may be able to claim the northern residents deductions. There are two deductions possible, one if you maintained a self-contained domestic establishment in a prescribed zone, and a second for medical and non-medical travel expenses incurred while residing in the prescribed zone. This continuous six month period can begin or end in the taxation year. A listing of prescribed zones can be found on Form T4039, Northern Residents Deductions - Places in Prescribed Zones.
When completing Form T2222, Northern Residents Deductions, you must clearly indicate the full address where you resided in a prescribed zone and not simply a post office box number.
A travel itinerary or other proof of travel, including the receipts for dwelling expenses may be required to support the travel part of a claim.
You are not eligible to claim the additional residency amount if another person has claimed the basic residency amount for the same period and dwelling.
Line 255 - Northern residents deductions
Additional deductions - Line 256
If you receive a German Social Security Pension be sure to follow the appropriate instructions. For more information, see the following web pages:
Generally, eligible legal expenses should be claimed at line 232 and not at line 256.
Various non-deductible items such as funeral expenses, wedding expenses, loans to family members, a loss on the sale of a home, and other similar amounts are sometimes claimed in error at this line and subsequently disallowed. If you would like additional information regarding whether a particular expense is deductible, contact us.
Line 256 - Additional deductions
Amount for an eligible dependant - Line 305
In addition to providing a completed Schedule 5, all applicable requested supporting documentation (for example, proof of custody) must be submitted in order for the claim to be allowed.
Only one individual can claim an eligible dependant at line 305. If you and another person both can claim this amount for the same dependant (such as shared custody of a child), you have to agree on who will claim the amount, otherwise we will disallow the claim on both returns.
If you are required to make support payments for a child, you cannot claim that child as an eligible dependant (unless it is the year of separation when special rules apply).
Only one claim at line 305 is allowed per household.
You cannot make a claim at line 305 for a child if you only have visitation rights.
Line 305 - Amount for an eligible dependant
Caregiver amount - Line 315
The dependant's net income, including social assistance and world income, must be considered when calculating the credit.
An eligible dependant must be 18 years of age or older and be dependent on you due to mental or physical infirmity, or must be 65 or older if he or she is your or your spouse or common-law partner's parent or grandparent.
With the exception of dependent children and/or grandchildren, eligible dependants must have resided in Canada at some time in the year. You cannot claim this amount for a person who was only visiting you.
Interpretation Bulletin IT221, Determination of an Individual's Residence Status
Interest paid on your student loans - Line 319
Only interest paid on a loan made to you under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws for post-secondary education qualifies.
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. For example, interest paid on a line of credit used for post-secondary education is not eligible.
Line 319 - Interest paid on your student loans
Pamphlet P105, Students and Income Tax
Tuition fees - Line 320 (Schedule 11)
Schedule 11 must be filed only with the student's income tax return, and not with the return of any individual designated by the student to claim the transfer of tuition, education, and textbook amounts.
Fees for non-credit courses or courses that are below the post-secondary level are not deductible. This includes courses such as driver education, academic upgrading, English as a second language or French as a second language. The tuition receipt provided by the educational institution must clearly identify the name and academic level of the course or program; otherwise your claim may be disallowed.
Fees for courses that provide or improve skills in an occupation are deductible if taken at an educational institution certified by Human Resources and Skills Development Canada.
Claims must be based on fees for a period during the calendar year, not the academic year. Fees that were reimbursed to you or to a parent or spouse on your behalf cannot be claimed unless the reimbursed amount is included in income. Only the eligible tuition fees minus the amount received as a tuition reimbursement can be deducted.
If requested to provide supporting documentation, ensure the official receipt issued by the educational institution is submitted to support the claim.
Line 323 - Eligible tuition fees
Pamphlet P105, Students and Income Tax
Education and textbook amounts - Lines 321 and 322 (Schedule 11)
You can claim only one education and textbook amount for each eligible month, either the full-time amount or the part-time amount.
Claims must be based on the calendar year, not the academic year. You cannot claim the education and textbook amounts if the tuition fees paid for the course were reimbursed to you or another person on your behalf. This applies whether or not the reimbursed tuition was added into income.
If requested to provide supporting documentation, ensure the official receipt issued by the educational institution is submitted to support the claim.
The number of months claimed must agree with the number of months indicated on the T2202/T2202A/TL11A/TL11B or TL11C.
Note
You can claim the education amount if you received salary or wages while you were taking a course related to your job. This change applies to 2004 and later years.
Pamphlet P105, Students and Income Tax
Line 324, Tuition, education, and textbook amounts transferred from a child
If you are the parent or grandparent of a child who is a student or the parent or grandparent of the student's spouse or common-law partner, you may be able to claim all or part of the tuition, education, and textbook amounts transferred from a child on line 324 of Schedule1, Federal Tax.
The maximum amount transferred from a child (or from each child), is $5,000 minus the amounts the student uses, even if there is still an unclaimed part. Tuition, education, and textbook amounts that the student carried forward from a previous year cannot be transferred.
The student has to complete Schedule 11, Tuition, Education and Textbook Amounts, to calculate the transfer amount. The student will complete the remainder of the Schedule 11 and enter, on Line 24 (also called line 327), the transferred amount.
The student also has to complete one and in some cases more than one of the following forms: Form T2202, Education and Textbook Amounts Certificate, Form T2202A, Tuition, Education, and Textbook Amounts Certificate, Form TL11A, Tuition, Education, and Textbook Amounts Certificate - University Outside Canada, Form TL11B, Tuition, Education, and Textbook Amounts Certificate - Flying School or Club, or Form TL11C, Tuition, Education, and Textbook Amounts Certificate - Commuter to the United States to designate you as the person who can claim the transferred amount. If the tuition fees being transferred to you are not shown on the student's Form T2202A, TL11A or TL11C, you should have a copy of the student's official tuition fees receipt.
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.
If the student has a spouse or common-law partner that is claiming the transferred amount, enter the federal amount designated on Form T2202, T2202A, TL11A, TL11B, or TL11C on Schedule 2, Line 360, Federal Amounts Transferred From Your Spouse or Common-Law Partner.
Note
You cannot claim an amount transferred from the same student at both line 324 and line 360.
Transferring tuition, education, and textbook amounts - Line 327 (Schedule 11)
Students must claim their tuition, education, and textbook amounts on their return and apply the amount that is required to reduce their own federal tax payable to zero, before they can calculate and transfer an unused amount to an eligible individual.
The eligible individual would claim the amount on his or her return at line 324 (when transferred by a child), or line 360 (if transferred by a spouse). The eligible amount to be transferred is limited to a maximum of $5000 (even if the tuition cost exceeds $5000).
If you have claimed an amount transferred from a student on your return and are requested to provide supporting documentation, the student's signature must be present on the reverse side of Form T2202A, Tuition, Education, and Textbook Amounts Certificate, Part 4 of Form T2202, Education and Textbook Amounts Certificate, Part 3 of Form TL11A, Tuition, Education, and Textbook Amounts Certificate - University Outside Canada, Part 4 of Form TL11B, Tuition, Education, and Textbook Amounts Certificate - Flying School or Club, or Part 4 of Form TL11C, Tuition, Education, and Textbook Amounts Certificate - Commuter to the United States.
Schedule 11 should be filed only with the student's income tax return, and not with the return of the individual claiming the transfer.
Line 323 - Transferring and carrying forward amounts
Medical expenses - Lines 330 and 331
Amounts paid for vitamins, supplements, or similar medicaments are only deductible if prescribed by a medical practitioner and recorded by a pharmacist; these do not include those that can be lawfully purchased without a prescription.
If submitting receipts, ensure they are dated, they indicate "paid", and that the type of goods or services received are clearly identified. It can be helpful to provide a list or summary of your expenses, including clear indications of whether any portion of certain expenses was reimbursed to you (for example, through an insurance plan).
To claim amounts paid to a facility such as a senior citizen's residence, retirement home, old age home or similar facility (other than a nursing home), the facility must provide the level of full-time care to the individual that would be expected of a nursing home. An exception may apply if the individual is eligible to claim the disability tax credit as these individuals may also be entitled to claim attendant care expenses.
Special rules apply when claiming medical expenses as well as the disability tax credit or the attendant care expenses.
Line 331 - Allowable amount of medical expenses for other dependants
Guide RC4064 - Medical and disability related information
Line 215 - Disability supports deduction
Form T2201 - Disability tax credit certificate
Public transit amount - Line 364
Daily passes or tickets are not eligible. Passes of less than a month in duration are only eligible if they entitle you to unlimited travel for an uninterrupted period of at least 5 days and you purchased enough of these passes to entitle you to unlimited travel for at least 20 days in any 28 day period.
If requested to substantiate your claim, submitted passes should contain an indication of the duration of the pass, the date or period for which the pass is valid, the name of the transit authority or organization issuing the pass, the amount paid, and the identity of the rider either by name or unique identifier.
If using 'smart' cards or similar electronic passes, it will be necessary to submit documentation from the transit authority indicating the name of the rider, the number of separate 31 day periods in which at least 32 one-way trips were taken and the amount paid with respect to transit services used during such periods.
Line 364 - Public transit amount
Amount for children born in 1994 or later - Line 367
If you are claiming this amount for more than one child, either you or your spouse or common-law partner must make the claim for all children who are under 18 years of age at the end of the year and resided with both of you throughout the year. Only one claim per household is allowed.
If the child or children do not reside with both parents throughout the year, the parent or the spouse or common-law partner who may claim the amount for an eligible dependant (see line 305) for a child, may make this claim for their child or children.
If you have shared custody of the child or children throughout the year, we need a letter signed by both parents stating who will make this claim. If there is no agreement about who will claim this amount, the claim will be denied to both parties.
Line 367 - Amount for children born in 1994 or later
Federal foreign tax credit - Line 405 (Form T2209)
A foreign tax credit can only be claimed with respect to foreign taxes actually payable to a foreign country and not necessarily based on taxes initially withheld.
Foreign source income and foreign income taxes paid must be converted to Canadian dollars.
What are the average exchange rates?
Contact the CRA if you are unsure of how to report income received from foreign sources.
A copy of your foreign tax return(s) and other supporting documentation may be requested in order to substantiate your claim. It may be necessary to provide foreign tax returns or other information related to two tax years if the foreign country has a taxation year that does not coincide with the calendar year. An example is the United Kingdom.
Line 405 - Federal foreign tax credit
Interpretation Bulletin IT270 - Foreign tax credit
Form T2209 - Federal foreign tax credits
Ontario Credit - Occupancy Cost - Line 6116 (Form ON479)
If requested to provide supporting documentation, ensure official receipts showing "paid" are submitted to support the claim. Copies of lease agreements are not acceptable as rent receipts.
Rent does not include condominium fees that you paid, charges that you paid for board (for example meals, cleaning and laundry), or utility charges (for example water, electricity or parking) unless these charges are included as part of rent in your rental agreement.
Property tax does not include amounts billed to you by the municipality in the form of user charges (for example water); common expenses incurred by you if you were a condominium owner; or any property tax interest and/or penalty charges that you paid in the year.
If you lived in a designated Ontario university, college, or private school residence, you can claim only $25 as your occupancy cost for the part of the year you lived in such a residence.
If you lived in a nursing home, hospital, charitable institution, group home, or a similar institution, and the institution paid full municipal and school taxes, your occupancy cost must not include any accommodation subsidy paid by a government agency.
Line 6116 - Form ON479 Ontario Credit - Occupancy Cost