Description of items
- Items 1 to 3
- Income items
- Deduction items
- Tax payable
Items 1 to 3
- Item 1: Number of taxable returns
This is the number of taxable returns as outlined in the Taxable or non-taxable classification description.
- Item 2: Number of non-taxable returns
This is the number of non-taxable returns as outlined in the Taxable or non-taxable classification description.
- Item 3: Total number of returns
This item is the total number of returns.
- Employment income
- Pension income
- Income from other sources
- Income from self-employment
- Other non-taxable Income
- Total income assessed
- Item 4: Employment income (before deductions) - Line 101 of the return, less commissions on line 102
This item refers to income from wages and salaries, taxable allowances and benefits, bonuses and directors' fees, etc.
- Item 5: Commissions - Line 102 of the return
This item refers to the income an employee received based on a percentage of sales. Some people may be paid by commission only, while others may receive a fixed salary as well as a percentage of sales.
- Item 6: Other employment income - Line 104 of the return
This item includes tips and occasional earnings, net research grants, clergy's housing allowance, foreign employment income, income-maintenance insurance plans (wage-loss replacement plans), veterans' benefits, certain GST/HST and QST rebates, royalties, amounts received under a supplementary unemployment benefit plan (guaranteed annual wage plan), taxable benefits for premiums paid for a group term life-insurance plan, employee profit-sharing plan amounts, medical premium benefits, amounts for the Wager Earner Protection Program.
- Item 7: Old Age Security pension - Line 113 of the return
This is the amount of income from the Old Age Security pension plan (box 18 of the T4A(OAS) slip).
- Item 8: Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits - Line 114 of the return
This is the amount of CPP or QPP benefits (box 20 on the T4A(P) slip). This item also includes death and disability benefits, and child benefit, if received by a child of a deceased or disabled contributor.
- Item 9: Other pensions or superannuation - Line 115 of the return
In addition to income from registered pension plans, this item includes income from registered retirement income funds, deferred profit-sharing plans, foreign pensions, etc.
- Item 10: Elected split-pension amount - Line 116 of the return
Amount of elected split-pension amount from line E of Form T1032, Joint Election to Split Pension Income.
Income from other sources
- Item 11: Universal Child Care Benefit (UCCB) - Line 117 of the return
Since July 2006, an eligible individual responsible for the care of a child under 6 years of age, is eligible to receive $100 per month for each qualified dependant. Starting in 2010, single parents can choose to include their UCCB received in the income of an eligible dependant.
- Item 12: Employment Insurance and other benefits - Line 119 of the return
This is the amount of benefits from the Employment Insurance Plan (box 14 on the T4E slip).
- Item 13: Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations - Line 120 of the return
This is the total dividend value, plus a 44% gross-up for the eligible dividends and a 25% gross-up for the dividends other than eligible dividends. A dividend tax credit is also available. For more information, see item 97.
- Item 14: Interest and other investment income - Line 121 of the return
This item includes interest, foreign interest or dividend income, etc.
- Item 15: Net partnership income: limited or non-active partners only - Line 122 of the return
This is the share of the net business income or loss from limited partnerships.
- Item 16: Registered disability savings Plan (RDSP) Income - Line 125 of the return
This item includes the registered disability savings plan income, the amount shown in box 28 of the T4A slip.
- Item 17: Net rental income - Line 126 of the return
This is rental income after expenses.
- Item 18: Taxable capital gains - Line 127 of the return
This amount represents 50% of the capital gains realized in 2010.
Note: It is possible for deceased taxfilers to claim capital losses at line 127. However, these amounts are not included in the total income calculation at line 150, they are deducted from the net income when calculating their taxable income at line 260. Therefore, this item only represents positive values found at line 127, and for accuracy, all negative values are reflected in Item 64.
- Item 19: Support payments received - Line 128 of the return
This is the taxable part of support payments received.
- Item 20: RRSP income - Line 129 of the return
This item refers to income from an RRSP.
- Item 21: Other income - Line 130 of the return
This item contains the following incomes reported on line 130 of the return:
- Scholarships, fellowships, bursaries, and artists' project grants;
- Apprenticeship incentive grant;
- Apprenticeship completion grant;
- lump-sum payments from pensions and deferred profit-sharing plans when leaving a plan;
- Retiring allowances (severance pay);
- Death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits)
- Other kinds of income (see the General Income Tax and Benefit Guide - 2010 for more details).
Income from self-employment
Self-employment income presented here corresponds to net income, i.e., the gross income, less any adjustments and expenses incurred.
- Item 22: Net business income - Line 135 of the return
This item is the income from businesses and partnerships. A business is an activity intended to carry on for profit.
- Item 23: Net professional income - Line 137 of the return
This refers only to income from independent practice, such as earnings by self-employed accountants, doctors, dentists, and lawyers. However, when a professionally qualified person is employed by a company, government, or institution, this individual's income is included in Item 4: Employment income (before deductions).
- Item 24: Net commission income - Line 139 of the return
This item shows net commission income for self-employed people -- such as real estate agents -- who are working in sales and earning commissions.
- Item 25: Net farming income - Line 141 of the return
Self-employed farmers, including beekeepers, tree farmers, etc., report their income on this line.
- Item 26: Net fishing income - Line 143 of the return
This item shows the net income from self-employed people fishing as boat owners or crew members, or fishing from shore.
Other non-taxable Income
- Item 27: Workers' compensation benefits - Line 144 of the return
This is the amount of compensation paid in respect to an injury, disability, or death to an employee, or surviving spouse/common-law partner, under the law of Canada or a province or territory. These amounts are shown on a T5007, Statement of Benefits slip.
- Item 28: Social assistance payments - Line 145 of the return
This item shows the social assistance payments made to beneficiaries or third parties as reported on a T5007, Statement of Benefits slip.
- Item 29: Net federal supplement - Line 146 of the return
This is the net amount of any Allowance, Allowance for the survivor, or Guaranteed Income Supplement received in the tax year, box 21 on the T4A(OAS) slip.
Note: A deduction may be claimed for the sum of Items 27, 28, and 29 at line 250 of the return.
Total income assessed
- Item 30: Total income assessed - Line 150 of the return or the total of Items 4 to 29
This item contains the amount reported on line 150 of the return, or the total of Items 4 to 29. It also includes the elected split-pension amount - Line 116 of the return. This item does not include non-taxable income from the following:
- any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
- child assistance payments and the supplement for handicapped children paid by the province of Quebec;
- compensation received from a province or territory for a victim of a criminal act or a motor vehicle accident;
- lottery winnings;
- most gifts and inheritances;
- amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
- most amounts received from a life insurance policy following someone's death;
- most payments of the type commonly referred to as strike pay received from a union; and
- most amounts received from a Tax-Free Savings Account (TFSA).
Note: Income earned on any of the above amounts (such as interest earned from the investment of lottery winnings) is taxable.
Some parts of total income assessed are in gross amounts, while others are in net amounts. For example, eligible dividend income is grossed-up to represent 144% of such income. Interest and investment income are also gross figures since carrying charges are not deducted (i.e., netted out). On the other hand, taxable capital gains are net amounts because only 50% of the gains realized in 2010 are reported.
- Deductions from total income assessed
- Deductions from net income
- Non-refundable tax credits
Deductions from total income assessed
- Item 31: Registered pension plan (RPP) contributions - Line 207 of the return
This item reports deductions from salaries for registered pension plans.
- Item 32: RRSP deduction - Line 208 of the return
This is the amount deducted for registered retirement savings plans or pooled registered pension plans. It is reported on line 208 of the return. The reported amount does not include eligible RRSP transfers.
- Item 33: Saskatchewan Pension Plan (SPP) deduction - Line 209 of the return
This item reports part of the contributions to the Saskatchewan Pension Plan (SPP) for 2010, up to a maximum of $600. Contributions to the SPP can be reported here or in Item 32, RRSP deduction.
- Item 34: Deduction for elected split-pension amount - Line 210 of the return
This item represents the elected split-pension amount that spouses or common-law partners have jointly elected to split (line E of Form T1032).
- Item 35: Annual union, professional, or like dues - Line 212 of the return
This item includes:
- annual dues for membership in a trade union or an association of public servants;
- professions board dues required under provincial or territorial law;
- professional or malpractice liability insurance premiums or professional membership dues required to keep a professional status recognized by law; and
- parity or advisory committee (or similar body) dues required under provincial or territorial law.
Note: Not included are initiation fees and special assessments, licenses or charges for any purpose other than the organization's ordinary operating costs.
- Item 36: Universal Child Care Benefit (UCCB) repayment - Line 213 of the return
This item represents repayment amounts shown in box 12 of the RC62 slip.
- Item 37: Child care expenses - Line 214 of the return
This item shows the child care expenses reported on line 214 of the return.
The maximum that a taxfiler could claim was the lesser of:
- Part A - the child care expense payment
- Part B - two-thirds of the taxfiler's earned income
- Part C - $7,000 for each child under 7 and for whom the disability amount could not be claimed; $10,000 for each child for whom the disability amount could be claimed; and $4,000 for each child aged 7 to 16.
- Item 38: Disability supports deductions - Line 215 of the return
This item represents the expenses paid for personal attendant care and other disability supports expenses, that no one has claimed as medical expenses (line 330 and line 331), that allowed the taxfiler to earn income or pursue an education. This includes income from employment or self-employment or grants received for conducting research.
- Item 39: Business investment loss - Line 217 of the return
This is the allowable business investment loss in 2010 from line D of Chart 6 of Guide T4037, Capital Gains.
- Item 40: Moving expenses - Line 219 of the return
This item represents moving expenses paid in 2010 for individuals who moved in order to obtain employment, run a business or study full time at an educational institution offering post-secondary courses; the move must have brought the taxfiler at least 40 kilometers closer to their new work or school.
- Item 41: Support payments made - Line 220 of the return
This item represents only the deductible amount of support payments for a spouse or common-law partner, or for a child in 2010.
- Item 42: Carrying charges and interest expenses - Line 221 of the return or according to the Schedule 4 calculation
The following carrying charges and interest paid to earn income from investments can be claimed:
- fees to manage or take care of investments (other than administration fees paid for registered retirement savings plan or registered retirement income fund), including safety deposit box charges;
- fees for certain investment advice or for recording investment income;
- fees paid to have someone complete a return, but only if the taxfiler has income from a business or property, accounting is a usual part of the operations of their business or property, and did not use the amounts claimed to reduce the business or property income reported;
- most interest paid on money borrowed for investment purposes, but generally only as long as it is used to try to earn investment income, including interest and dividends. However, if the only earnings the investment can produce are capital gains, the interest paid cannot be claimed.
- Item 43: Deduction for CPP or QPP contributions on self-employment and other earnings - Line 222 of the return
This item represents half of the total Canada Pension Plan or Quebec Pension Plan contributions, if any, from Schedule 8. The taxfiler can claim an amount for the other half on line 310 on Schedule 1.
- Item 44: Deduction for PPIP premiums on self-employment income - Line 223 of the return
This item represents the provincial parental insurance plan (PPIP) premiums paid by residents of Quebec with a net self-employment income on lines 135 to 143 of $2,000 or more; or total employment income (including employment income from outside Canada) and net self-employment income of $2,000 or more.
- Item 45: Exploration and development expenses - Line 224 of the return
This item represents deductions for investments in a petroleum, natural gas, or mining venture in 2010, without active participation.
- Item 46: Other employment expenses - Line 229 of the return
This item includes deductions for certain expenses incurred by the taxfiler to earn employment income, such as:
- Accounting and legal fees
- Advertising and promotion
- Allowable motor vehicle expenses
- Food, beverages, and entertainment expenses, up to 50%
- Lodging, when work conditions require being away from employer's place of business
- Supplies (for example, postage, stationery, other office supplies)
- Tradesperson's tools expenses
- Apprentice mechanic tools expenses
- Musical instrument expenses
- Capital cost allowance for musical instruments
- Artists' employment expenses
- Item 47: Clergy residence deduction - Line 231 of the return
This is a calculated deduction available to a member of the clergy for his or her residence. See Form T1223, Clergy Residence Deduction for more information.
- Item 48: Other deductions - Line 232 of the return
This item includes allowable amounts not deducted anywhere else on the return. The most common deductions claimed on line 232 are:
- Income amounts paid back
- Legal fees
- Depletion allowances
- Certain unused RRSP contributions made after 1990 that were refunded in 2010
- Excess parts of a direct transfer of a lump-sum payment from an RPP to RRSP or RRIF that was withdrawn and included in lines 129 or 130 of the 2010 return.
- Item 49: Total Deductions before adjustment - Line 233 of the return
This item is the total for Items 31 to 48.
- Item 50: Social benefits repayment - Line 235 of the return
Employment Insurance premiums have to be repaid in whole or in part if there is an amount in box 15 of the taxfiler's T4E slip, the rate in box 7 is 30% and the amount on line 234 of the taxfiler's return, minus any UCCB (line 117 or 125), plus any deduction on line 213 and/or for a repayment of registered disability savings plans income included on line 232, is more than $54,000.
Old Age Security pension (line 113) or net federal supplements (line 146) have to be repaid in whole or in part when the net income before adjustments (line 234) minus line 117 and 125, plus any deduction on line 213 and/or for a repayment of registered disability savings plans income included on line 232, is more than $66,733.
- Item 51: Net income after Adjustment - Line 236 of the return
This item is the result of subtracting social benefits repayment and total deductions before adjustment from total income (Items 49 and 50 subtracted from Item 30).
Deductions from net income
- Item 52: Canadian Forces personnel and police deduction - Line 244 of the return
This is the deductions claimed for certain members of the Canadian Forces and Canadian police services, deployed outside Canada on a high-risk or current moderate-risk operational mission. This amount can be found in box 43 on the T4 slip.
- Item 53: Employee home relocation loan deduction - Line 248 of the return
Generally, an employee home relocation loan is a loan received by virtue of a prior, current or future office or employment when the taxfiler has moved from their former residence to another residence in Canada to start employment at the new work location. For more information on the conditions that must be met, see IT421R2, Benefits to individuals, corporations and shareholders from loans or debt.
- Item 54: Security options deductions - Line 249 of the return
This item is the total of the amounts shown in boxes 39 and 41 of the T4 slip. In addition, if the taxpayer disposed of securities for which they had previously deferred the taxable benefit (see "Security option benefits" on page 12 of the General Income Tax and Benefit Guide-2010) they may claim 50% of the amount from line 4 of Form T1212, Statement of Deferred Security Options Benefits. The taxfiler may be electing, in 2010, for the special relief in respect of gains from a disposition of eligible securities on which he or she elected in a previous year to defer the security option benefits. In these cases, the amount the taxfiler can claim on line 249 may be more than 50% of line 4 of Form T1212, Statement of Deferred Security Options Benefits. See Form RC310, Election for Special Relief for Tax Deferral Election on Employee Security Options, or Guide T4037, Capital Gains.
- Item 55: Other payments deduction - Line 250 of the return
Generally, the total amount from line 147 of the return can be deducted. This includes: line 144, Workers' compensation benefits; line 145, Social assistance payments; and line 146, Net federal supplements.
- Item 56: Limited partnership losses of other years - Line 251 of the return
This item represents limited partnership losses in previous years that have not already been deducted.
- Item 57: Non-capital losses of other years - Line 252 of the return
This item is the amount of the unapplied non-capital losses reported on 2003 to 2009 returns and/or any unapplied farming and fishing losses reported on 2000 to 2009 returns that have been applied in 2010.
- Item 58: Net capital losses of other years - Line 253 of the return
This item is the amount of net capital losses of previous years that have not already claimed, within certain limits. For more information, see Guide T4037, Capital Gains.
- Item 59: Capital gains deduction - Line 254 of the return
The taxfiler may claim a capital gains deduction from these taxable capital gains in 2010:
- dispositions of qualified small business corporation shares;
- dispositions of qualified farm property;
- dispositions after May 1, 2006, of qualified fishing property; and
- reserves brought into income in 2010, from any of the above.
The deduction limit was increased to $375,000 (1/2 of the proposed $750,000 lifetime capital gains exemption) on capital gains arising from dispositions of qualified property after March 18, 2007.
Cumulative net investment losses may reduce the amount of net taxable capital gains that are otherwise eligible for the capital gains deduction.
- Item 60: Northern residents deductions - Line 255 of the return
This item represents the total northern residents deductions, which is the sum of the residency deduction for having lived in a prescribed zone and the travel deduction for taxable travel benefits received from employment in a prescribed zone, as calculated on form T2222, Northern Residents Deduction.
- Item 61: Additional deductions - Line 256 of the return
- Income exempt under a tax treaty. For example, foreign income such as support payments received from a resident of another country, reported at line 128.
Note: Under the Canada-U.S. tax treaty, a deduction equal to 15% of the U.S. social security benefits can be claimed, including U.S. medicare premiums, included in the income on line 115.
- Earned income and pension benefits given to a religious order by members who have taken a vow of perpetual poverty.
- Net employment income reported by employees of prescribed international organizations, such as United Nations.
- Adult basic education tuition assistance, a deduction for the amount of qualifying assistance shown in box 21 for slip T4E can be claimed.
- Income exempt under a tax treaty. For example, foreign income such as support payments received from a resident of another country, reported at line 128.
- Item 62: Restricted Farming/Fishing losses of prior years
This item is the sum of the amount of farming/fishing losses of prior year applied in 2010 and the gross amount of a farm loss subject to the section 31 restrictions.
- Item 63: Total deductions (from net income) - Line 257 of the return
This item is the sum of Items 52 to 62.
- Item 64: Taxable income assessed - Line 260 of the return
This is the amount on which income tax is calculated. For example:
Note: Capital losses for deceased taxfilers are reported here.
|$40,970 or less||15%|
|$40,970 to $81,941||22% plus $6,146|
|$81,941 to $127,021||26% plus $15,159|
|Over $127,021||29% plus $26,880|
Non-refundable tax credits
Individuals are entitled to claim certain non-refundable tax credits in calculating taxes payable for a taxation year. These credits reduce the amount of income tax an individual owes. If the total of these credits is more than the income tax the individual would otherwise owe for the year, the individual will not receive a refund for the difference.
Non-refundable tax credits are calculated by multiplying a total or single dollar amount by the lowest tax rate percentage. The amounts shown in the tables are the full amounts before applying the percentage rate. If a taxfiler became or ceased to be a resident of Canada for income tax purposes during 2010 they may have to reduce their claim for the amounts on lines 300, 301, 303, 305, 367, 306, 363, 364, 365, 369, 313, 314, 315, 318, 324, 326, and 332. For more information, see Pamphlet T4055, Newcomers to Canada, or Leaving Canada (emigrants) page, whichever applies.
The non-refundable tax credit is 15% of the total credit amount. Credits for charitable donations and for cultural, ecological, and government gifts of more than $200 are calculated at a rate of 29%.
- Item 65: Basic Personal Amount - Line 300 of Schedule 1 of the return
For 2010, this amount is $10,382.
- Item 66: Age amount - Line 301 of the Schedule 1 of the return
Taxfilers who were 65 years or older in 2010 and whose net income was less than $75,480 may be allowed to claim an age amount up to a maximum of $6,446.
- Item 67: Spouse or common-law partner amount - Line 303 of Schedule 1 of the return
This amount can be claimed by a taxfiler who supported their spouse or common-law partner at any time in the year and their spouse's net income was less than $10,382.
- Item 68: Amount for eligible dependant - Line 305 of Schedule 1 of the return
The taxfiler may be able to claim this amount if, at any time in the year, he or she met all of the following conditions at once:
- He or she did not have a spouse or common-law partner or, if he or she did, he or she were not living with, supporting, or being supported by that person;
- He or she supported a dependant in 2010; and he or she lived with the dependant (in most cases in Canada) in a home that he or she maintained. He or she cannot claim this amount for a person who was only visiting him or her. In addition, at the time he or she met the above conditions, the dependant also must have been either:
- His or her parent or grandparent by blood, marriage, common-law partnership, or adoption;
- Or his or her child, grandchild, brother, or sister by blood, marriage, common-law partnership, or adoption and either under 18 years of age or mentally or physically impaired.
- Item 69: Amount for children under 18 - Line 367 of Schedule 1 of the return
Taxfilers can claim $2,101 for each of their children (or their spouse or common-law partner's children) who are 17 years of age or under at the end of the year.
- Item 70: Amount for infirm dependants age 18 or older - Line 306 of Schedule 1 of the return
Taxfilers can claim an amount up to a maximum of $4,223 for each dependant child or grandchild only if that child or grandchild had impairment in physical or mental functions and was born in 1992 or earlier.
- Item 71: Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions through employment - Lines 308 of Schedule 1 of the return.
This is the amount, up to a maximum of $2,163.15 paid into the Canada Pension Plan or Quebec Pension Plan by employees. It does not include taxfilers aged 71 and over because they do not contribute.
- Item 72: CPP or QPP contributions on self-employment and other earnings - Line 310 of Schedule 1 of the return
For self-employment and other earnings, this item represents the other half of the total Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP) contribution from Schedule 8. (The other half is claimed on line 222 of the return.)
- Item 73: Employment Insurance premiums through employment - Line 312 of Schedule 1 of the return.
This is the amount, up to a maximum of $747.36, deducted as Employment Insurance premiums and withheld by the employer. This does not include any overpayment.
- Item 74: Employment Insurance premiums on self-employment and other eligible earnings
Under new Employment Insurance (EI) measures that have been in effect since January 2010, self-employed individuals can choose to pay EI premiums, up to $747.36 to be eligible to receive EI special benefits (see schedule 13).
- Item 75: Provincial parental insurance Plan (PPIP) premiums paid - Line 375 of Schedule 1 of the return
This represents the amount of premiums paid by the residents of Quebec to the PPIP, shown in box 55 of the T4 slip. The maximum amount that the taxfiler can claim is $316.25.
- Item 76: PPIP premiums payable on employment income - Line 376 of Schedule 1 of the return
This represents the premiums paid by the residents of Quebec, from line 16 of Schedule 10 of the return, with employment income (including employment income outside of Canada) of more than $2,000 and one T4 slip with a province of employment other than Quebec in box 10. The maximum amount that the taxfiler can claim is $316.25.
- Item 77: PPIP premiums payable on self-employment income - Line 378 of Schedule 1 of the return
This represents the premiums paid by the residents Quebec, from line 10 of Schedule 10 of the return. The maximum amount that the taxfiler can claim is $316.25.
- Item 78: Canada Employment Amount - Line 363 of Schedule 1 of the return
Employees are eligible to claim an employment amount. This amount is the lesser of:
- $1,051; and
- The total of the income reported on lines 101 and 104 of the return.
- Item 79: Public transit amount - Line 364 of Schedule 1 of the return.
An amount can be claimed for the cost of monthly public transit passes, passes of longer duration, and certain passes of shorter duration. Public transit includes local buses, streetcars, subways, commuter trains or buses, and local ferries.
- Item 80: Children's Fitness amount - Line 365 of Schedule 1 of the return
This item represents the fees paid in 2010 by the taxfiler to register his or her child or his or her spouse or common-law partner's child in a prescribe program of physical activity. This credit can be claimed to a maximum of $500 per child.
The taxfiler can claim an additional amount of $500 for a child that qualifies for the disability amount and is under 18 years of age.
- Item 81: Home buyers' amount - Line 369 of Schedule 1 of the return
An amount of $5,000 can be claimed for the purchase of a qualifying home made if the taxfiler or his or her spouse or common-law partner acquired a qualifying home, and they did not live in another home they owned in the year of acquisition or in any of the four preceding years (first-time home buyer).
Note: Taxfilers eligible for the disability amount or those buying the home for the benefit of a related person who is eligible for the disability amount, do not need to be first-time home buyers to claim this amount.
- Item 82: Adoption expenses - Line 313 of Schedule 1 of the return
This represents the claimed amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $10,975.
- Item 83: Pension income amount - Line 314 of Schedule 1 of the return
An amount up to $2,000 can be claimed by taxfilers with eligible pension, superannuation or annuity payments on lines 115, 116 and/or 129 of the return.
- Item 84: Caregiver amount - Line 315 of Schedule 1 of the return
Taxfilers may be allowed to claim a caregiver amount up to a maximum of $4,223 for each dependant. Each dependant must have been one of the following individuals:
- The taxfiler's or his or her spouse's or common-law partner's child or grandchild; or
- The taxfiler's spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. This amount cannot be claimed for a person who was only visiting.
In addition, each dependant must meet all of the following conditions. The person must have:
- Been 18 years of age or older at the time he or she lived with the taxfiler.
- Had a net income less than $18,645 in 2010.
- Been dependant due to mental or physical impairment, of if he or she is the taxfiler's or taxfiler's spouse or common-law partner's parent or grandparent, born in 1945 or earlier.
- Item 85: Disability amount (for self) - Line 316 of Schedule 1 of the return
This amount can be claimed if the taxfiler has had an impairment in physical or mental functions that is severe and prolonged during 2010. They may be able to claim $7,239 if they meet certain conditions and with certification from a qualified practitioner. Taxfilers under 18 years of age in 2010 could be eligible for a supplement for a total maximum credit of $11,462. See the Disability Tax Credit Certificate - Form T2201 for more information.
- Item 86: Disability amount transferred from a dependant - Line 318 of Schedule 1 of the return
This amount represents all or part of the taxfiler's dependant's disability amount from line 316 if he or she resided in Canada at any time in 2010 and depended on the taxfiler for all or some on the basic necessities of life (food, shelter, or clothing).
In addition, one of the following situations has to apply:
- The taxfiler claimed an amount on line 305 for that dependant, or the taxfiler could have if they 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 the taxfiler's or the taxfiler's spouse's or common-law partner's parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew, and the taxfiler claimed an amount on line 306 or 315 for that dependant, or could have if the dependant had no income and had been 18 years of age or older in 2010.
- Item 87: Interest paid on student loans - Line 319 of Schedule 1 of the return
This is the amount for the interest paid on a loan made to the taxfiler under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws for post-secondary education in 2010 or the preceding five years.
- Item 88: Tuition, education, and textbook amount - Line 323 of Schedule 1 of the return
This is item represents eligible tuition fees and the education and textbook amounts.
- Item 89: Tuition, education, and textbook amount transferred from a child - Line 324 of Schedule 1 of the return
This item represents eligible tuition fees and the education and textbook amounts transferred from a student. A student may transfer up to $5,000, minus the amount that he or she uses (even if there is still an unclaimed part), to his or her parent or grandparent.
- Item 90: Amounts transferred from spouse or common-law partner - Line 326 of Schedule 1 of the return
When a taxfiler is entitled to certain credits that aren't required to reduce his or her federal income tax to zero, these amounts can be transferred to the return of his or her spouse. The taxfiler can transfer the following:
- age amount
- amount for children born in 1993 or later
- pension income amount
- disability amount
- tuition, education and textbooks amounts.
- Item 91: Allowable amount of medical expenses - Line 332 of Schedule 1 of the return
This is the total allowable medical expenses reported on lines 330 and 331 of the return. This includes the allowable medical expense amount for the filer, his or her spouse or common-law partner and his or her dependant children born in 1993 or later and the allowable amount of medical expenses for other dependants. Medical expenses for the taxfiler, his or her spouse or common-law partner and his or her dependants must be more than 3% of the taxfiler's net income or $2,024, whichever is less. The medical expenses for each dependant over age 18 must exceed the lesser of $2,024 or 3% of the dependant's net income, up to a maximum of $10,000 for each dependant.
- Item 92: Net tax credits on personal amounts - Line 338 of the Schedule 1 of the return
This is 15% of the total credit amounts from Items 65 through 91.
- Item 93: Allowable charitable donations and government gifts - Line 340 of Schedule 9 of the return
This amount is allowable charitable donations and government gifts: 75% of the taxfiler's net income, plus 25% of the sum of gifts of depreciable property and gifts of capital property, or the total amount of eligible charitable donations and government gifts reported on line 1 of Schedule 9, whichever is less.
- Item 94: Eligible cultural and ecological gifts - Line 342 of Schedule 9 of the return
This item represents the eligible amount of cultural and ecological gifts. The total eligible amount claimed for these types of gifts are not limited to a percentage of net income.
- Item 95: Total tax credit on donations and gifts - Line 349 of Schedule 1 of the return
This item is the sum of Lines 346 and 348 of Schedule 9. Where:
Line 344 = the sum of Items 93 "Allowable charitable donations and government gifts" and 94 "Eligible cultural and ecological gifts".
Line 345 = $200 or the amount from Line 344, whichever is less.
Line 346 = 15% of Line 345.
Line 348 = 29% of Line 344 minus Line 345.
- Item 96: Total federal non-refundable tax credits - Line 350 of Schedule 1 of the return
This item is the sum of Item 92, "Net tax credits on personal amounts" and Item 95 "Total tax credit on donations and gifts".
- Item 97: Federal dividend tax credit - Line 425 of Schedule 1 of the return
This is 17.9739% of the taxable amount of eligible dividends included on line 120 for taxfilers who received eligible dividends or 13.3333% of the taxable amount of dividends reported on line 180 for taxfilers who received dividends other than eligible.
- Item 98: Overseas employment tax credit - Line 426 of Schedule 1 of the return
A taxfiler may be able to claim this credit if he or she was a resident or a deemed resident of Canada at any time in the year and he or she had employment income from certain kinds of work in another country. See Form T626, Overseas Employment Tax Credit.
- Item 99: Minimum tax carryover - Line 427 of Schedule 1 of the return
If the taxpayer paid minimum tax on any of his or her 2003 to 2009 tax returns but doesn't have to pay minimum tax for 2010, he or she may be able to claim credits against his or her taxes for 2010 for all or part of the minimum tax paid in those years. See Form T691, Alternative Minimum Tax.
- Item 100: Basic federal tax - Line 429 of Schedule 1 of the return - Line 429 of Schedule 1 of the return
This amount refers to the tax on taxable income assessed, less items 97 to 99.
- Item 101: Federal foreign tax credit - Line 405 of Schedule 1 of the return
This credit is for foreign income or profits taxes paid on income received from outside Canada and reported on the taxfiler's Canadian tax return. See Form T2209, Federal Foreign Tax Credits. Note that the taxfiler may have deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty. In that case, that income, or any tax withheld from it, is not in the foreign tax credit calculation.
- Item 102: Federal political contribution tax credit - Line 410 of Schedule 1 of the return
This amount refers to the total contributions the taxfiler or their spouse or common-law partner paid during 2010 to a registered federal political party or a candidate for election to the House of Commons. The eligible amount is the amount by which the fair market value of the monetary contribution exceeds any advantage that the taxfiler or their spouse or common-law partner received or will receive for making it. If total political contributions are $1,275 or more, the maximum that can be claimed is $650 on line 410. See the federal worksheet of the return.
- Item 103: Investment tax credit - Line 412 of Schedule 1 of the return
The taxfiler may be eligible for this credit if any of the following apply. The taxfiler:
- bought certain new buildings, machinery, or equipment and they were used in certain areas of Canada in qualifying activities such as farming, fishing, logging, manufacturing, or processing;
- have unclaimed credits from the purchase of qualified property after 1999;
- have an amount shown in box 41 of your T3 slips;
- have an amount shown in box 107 or 128 of your T5013 or T5013A slips;
- have an amount shown in box 128 of your T101 slips;
- have a partnership statement that allocates to him or her an amount that qualifies for this credit;
- have an investment in a mining operation that allocates certain exploration expenditures to him or her; or
- employs an eligible apprentice in his or her business.
The taxfiler can claim an investment tax credit if he or she carry on a business and create one or more new child care spaces for children of his or her employees and other children. See Form T2038(IND), Investment Tax Credit (Individuals).
- Item 104: Labour-sponsored funds tax credit - Line 414 of Schedule 1 of the return
The taxfiler may be able to claim this credit if he or she became the first registered holder to acquire or irrevocably subscribe to and pay for an approved share of the capital stock of a prescribed labour sponsored venture capital corporation (LSVCC) from January 1, 2010, to March 1, 2011. The allowable credit cannot be more than 15% of the net cost, to a maximum of $750 per year. The unused 2009 credit, in whole or in part, can be claimed in 2010.
- Item 105: Alternative minimum tax payable
Minimum tax limits the tax advantage a taxfiler can receive in a year from certain incentives. A taxfiler has to pay minimum tax if it is more than the federal tax calculated in the usual manner. When calculating the taxable income for this tax, a basic exempt amount of $40,000 is allowed. This Item represents the additional taxes paid in tax year 2010 that are eligible for the minimum tax carryover. The whole amount of this Item is already included in Item 100, Basic federal tax. See Form T691, Alternative Minimum Tax or page 32 of the General Income Tax and Benefit Guide - 2010.
- Item 106: Net federal tax - Line 420 of Schedule 1 of the return
This item represents basic federal tax (item 100) less items 101 to 104, and less the federal logging tax credit plus the alternative minimum tax payable (item 105). It also includes the sum of the Working income tax benefit (WITB) advance payments received and the Additional tax on registered education savings plan (RESP) accumulated income payments.
- Item 107: CPP contribution payable on self-employment and other earnings - Line 421 of Schedule 1 of the return
This item represents the Canada Pension Plan contributions for self-employed and other earnings.
- Item 108: Employment Insurance premiums payable on self-employment and other eligible earnings - Line 430 of Schedule 1 of the return
This is the amount of the EI premiums that self-employed taxfilers who chose to pay EI premiums was required to pay for 2010. It is the same amount reported at Item 74. Refer to Schedule 13 of the return.
- Item 109: Social benefits repayment - Line 422 of Schedule 1 of the return
This is the social benefits to be repaid from Item 50.
- Item 110: Net provincial or territorial tax - Line 428 of Schedule 1 of the return
For provinces and territories (except for Quebec), tax is based on a percentage of basic federal tax.
In 2010, the provincial and territorial income tax and surtax rates are provided below:
The following provinces and territories levy a surtax on provincial and territorial tax payable:
- Item 111: Total tax payable - Line 435 of the return
This is the total of the amounts of Net federal tax (Item 106), Canada Pension Plan contributions payable on self-employment earnings (Item 107), Employment Insurance premiums payable on self-employment and other eligible earnings (108), Social benefits repayment (109), and Provincial or territorial tax payable (Item 110).Total tax payable includes the Yukon First Nations tax from line 432 of the return, for which a line item is not depicted in tables 2-5A.
|Newfoundland and Labrador||7.7% on the first $31,278 of taxable income, +
12.65% on the next $31,278, +
14.4% on the amount over $62,556
|Prince Edward Island||9.8% on the first $31,984 of taxable income, +
13.8% on the next $31,985, +
16.7% on the amount over $63,969
|Nova Scotia||8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820 +
17.5% on the next $57,000 +
21% on the amount over $150,000
|New Brunswick||9.3% on the first $36,421 of taxable income, +
12.5% on the next $36,422, +
13.3% on the next $45,584, +
14.3% on the amount over $118,427
|Ontario||5.05% on the first $37,106 of taxable income, +
9.15% on the next $37,108, +
11.16% on the amount over $74,214
|Manitoba||10.8% on the first $31,000 of taxable income, +
12.75% on the next $36,000, +
17.4% on the amount over $67,000
|Saskatchewan||11% on the first $40,354 of taxable income, +
13% on the next $74,943, +
15% on the amount over $115,297
|Alberta||10% of taxable income|
|British Columbia||5.06% on the first $35,859 of taxable income, +
7.7% on the next $35,860, +
10.5% on the next $10,623, +
12.29% on the next $17,645, +
14.7% on the amount over $99,987
|Yukon||7.04% on the first $40,970 of taxable income, +
9.68% on the next $40,971, +
11.44% on the next $45,080, +
12.76% on the amount over $127,021
|Northwest Territories||5.9% on the first $37,106 of taxable income, +
8.6% on the next $37,108, +
12.2% on the next $46,442, +
14.05% on the amount over $120,656
|Nunavut||4% on the first $39,065 of taxable income, +
7% on the next $39,065, +
9% on the next $48,891, +
11.5% on the amount over $127,021
|Province/Territory||Surtax||Provincial/territorial tax payable|
|Prince Edward Island||10%||over $12,500|
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