Chapter 1 Electronic Records Preparation for 2023

Introduction

Electronic filing (EFILE) for income tax return is limited to the current plus six prior tax years. It is an automated service that permits those who prepare tax returns on behalf of others to electronically file them to the Canada Revenue Agency (CRA). You must use a software product certified for EFILE to transmit the returns using a web service. You will receive a "real-time" acknowledgement, which means a confirmation number is provided almost instantly using the same web service.

The purpose of this chapter is to provide supplementary information for tax preparers and software developers for the completion of the electronic return and the correction of errors. This chapter does not replace or contain information that is in the Federal Income Tax Information, other supplementary guides or other CRA publications.

Ensure the return contains all the required information before it is transmitted. If we have accepted and processed your client's tax return, you may be able to retransmit an online adjustment. Go to canada.ca/guide-refile for more information. Also, your client can use the "Change my return" option from My Account at canada.ca/my-cra-account. Alternatively, you may change your client's return if you have a level 2 authorization on your client's account. Go to canada.ca/cra-represent-a-client for more information.

Information for tax preparers

Support

If you receive an error message after you transmit a return, consult Chapter 2 of the Electronic Filers Manual. If you have questions regarding the error messages or any problems regarding the authentication for EFILE numbers and passwords, the EFILE Helpdesk is available for assistance. Please make every attempt to contact your designated Helpdesk. You may read the following web pages for more information:

1. EFILE certified software for the 2024 EFILE program

   canada.ca/cra-efile-software

2. Mandatory electronic filing for tax preparers

   canada.ca/taxes-mandatory-electronic-filing

3. EFILE for electronic filers – File returns

   canada.ca/cra-efile-file-returns

4. EFILE for electronic filers – Eligibility

   canada.ca/cra-efile-eligibility

5. Form T183

   canada.ca/cra-form-t183

6. Information for discounters

   canada.ca/taxes-discounters

7. About Auto-fill my return

   canada.ca/auto-fill-my-return

Processing returns

Electronic returns

Subsection 150.1(3) of the Income Tax Act states: "For the purposes of section 150, where a return of income of a taxpayer for a taxation year is filed by way of electronic filing, it shall be deemed to be a return of income filed with the Minister in prescribed form on the day the Minister acknowledges acceptance of it."

For an electronic record to be deemed a return of income filed with the Minister in prescribed form, a confirmation number must be generated by EFILE.

Form T7DR(A), Electronic Filing Remittance Form

As of the 2017 filing season, the Form T7DR(A) is no longer available in paper format. Certified software will have the capability to provide a link to an electronic version of the T7D(A) remittance form.

If not included in the software, you can call 1-800-959-8281 for instructions to download a fillable PDF form. Each electronic T7D(A) form:

• is personalized
• contains a QR code, allowing your client to pay in person at their Canadian financial institution or at any Canada Post outlet across Canada
• contains validations to ensure information is accurate
• is easy to use and take less than a minute to complete

Near real-time processing

The CRA begins processing tax returns (2017 to 2023 tax years) on February 19, 2024. The majority of accepted EFILE returns are processed in near real time shortly after being filed. For returns filed using EFILE, the notices will be issued electronically through the EFILE service provider and/or through My Account. First-time filers will receive a paper notice of assessment regardless of how they file their first income tax return. Notices of assessment delivered electronically will be available within 24 hours. Paper notices of assessment will be issued via a batch cycle process. The first notice of assessment date will be in early March 2024.

Payment of balance owing

Inform clients that payment of any balance owing on the 2023 tax return is due by April 30, 2024. Clients who file early may send the CRA a post-dated payment for as late as April 30, 2024. Compound daily interest is charged on any outstanding balance from May 1, 2024 until it is paid in full. Inform clients that if they cannot pay in full upon filing their return, they may go to canada.ca/cra-collections for additional information.

Go to canada.ca/guide-taxes-payments for information on the different types of payment methods.

Refund enquiries

Do not direct your client’s refund enquiries to the EFILE Helpdesks. Instead, your client should call 1-800-959-8281. Go to canada.ca/cra-individual-income-tax-enquiries-line for the hours of telephone service. Advise your client that the CRA enquiries officers can only check the status of the refund four weeks after the electronic return has been accepted by the Agency for processing. You must inform your client accordingly if a delay is encountered in the submission of the EFILE return. Your clients can also visit My Account to get information about the status of their current year refund.

Election documentation

For ease of discussion in this part, all elections, designations, agreements, waivers, and special elective returns are referred to as "elections."

The Income Tax Act provides for various elections to be made. Some are made on authorized CRA forms. Others are made by providing specific information in a letter or note.

All elections, including the supporting documentation, must be submitted to the CRA in writing, unless otherwise indicated. In order for an election to be considered valid, it must be submitted by the due date established in the Act.

Paper documentation in support of elections should be sent to the tax centre that services the area in which the client lives except for Form T1135, Foreign Income Verification Statement, which is to be sent to the tax centre indicated on the form. If the return is successfully transmitted by EFILE, a paper copy of the form is not required to be sent to the tax centre.

When submitting this documentation:

• Clearly state the client's full name, address, and social insurance number (SIN) on all the election forms and letters.
• Clearly indicate in the covering letter that this documentation is submitted in support of the client's electronically filed return.

All other documentation used to prepare the return, excluding elections as indicated, is to be retained and sent to the CRA only if requested.

Identification and other information

The CRA no longer sends an identification mail-out label which reflects information contained in the CRA’s records. Confirm with your clients their personal information, including their current address, before entering it on the EFILE return. Ensure that the name, the SIN and date of birth entered belong to the client for whom you are preparing the return. Non acceptance often results because spousal identification information is entered on the client’s return.

The following information is found on pages 1, 2 and 8 of the Income Tax and Benefit Return. Refer to Appendices A, B, C and D for specifications.

Identification

First name/Last name

The client’s first and/or last name must agree with the information on the CRA’s records. If the information you entered was correct, indicate that a name change is required.

When entering the client’s name:

• All names may begin and end with an alphanumeric character. See Appendix B for more information.
• Do not key titles in the taxpayer’s name (e.g., Ms, Rev, Dr).
• Where there is a suffix after the taxpayer’s name, leave one space between the surname and the suffix.
• For hyphenated names, do not leave a space (e.g., Jones-Smith).
• Where the taxpayer has multiple first names (e.g., Mary Lou), leave a space between the names.
• A client who uses a number at the beginning of their name (e.g., an Inuit) may enter the number before their name.
• For deceased clients, do not include "The estate of the late" in the client’s first name.

Mailing address (apartment – number, street)

All address fields must begin and end with an alpha or numeric character. Failure to comply with the specifications may result in a processing delay.

• When a street address contains a fraction, for example, 45½, key as 45 1/2. Leave only one space to separate numbers and words (for example, 75 3 Garden St).
• The entry for the name of the city is validated against the CRA’s city database index. The only allowable combination of special characters in the city name is a period followed by a hyphen.
• The postal code must be in ANANAN format and it must be valid for the city and the province or territory of residence entered.
• When making an entry on the “care of” line, do not include “C/O,” “c/o,” or “care of.” Do not enter the “care of” information in the client’s address lines and do not make an entry on this line unless it is to be used in the client’s mailing address. Entries on this line will be printed on the client’s notice of assessment. Begin and end the entry with an alpha or numeric character.
• For discounted returns, enter the client’s address. The CRA will direct the notice of assessment and the refund to the discounter based on the address associated with the discounter code.
• For pre-bankruptcy returns, do not enter the trustee’s address. It is the client’s address that must be entered.

The EFILE service will accept tax returns with a non-Canadian mailing address.

• When entering an U.S. address, the zip code is mandatory and it must be numeric. It must be greater than 00000 and less than 100000. Zip code extension is optional. If provided, it must be in four digits and must be greater than 0000.

Email address

By providing an email address, the client is registering to receive email notifications from the CRA and agree to the Terms of use. To view the Terms of use, go to canada.ca/cra-email-notifications-terms.

Social insurance number (SIN)

Ensure that the name, the SIN and date of birth entered belong to the client for whom you are preparing the return. Non acceptance often results because spousal identification information is entered on the client’s return.

Date of birth

The date of birth is one of the entries used to ensure that the correct master record is accessed for processing the return. If you are preparing a tax return for a client who has previously filed, you should refer to the client’s previous notice of assessment to determine if it contained notification concerning a discrepancy in the date of birth.

Changes to the date of birth cannot be made through EFILE. Where a change is required, the client should contact their local tax services office.

Date of death

Enter your client’s date of death. Valid entries are within or subsequent to the current tax year.

Marital status

Enter the client’s marital status on December 31 of the tax year.

Language of correspondence

Enter the client’s choice of official language when corresponding with the CRA.

Residence information

Province or territory of residence

Where the client’s mailing address is in a province or territory different from the province or territory of residence on December 31 of the tax year, the client is still eligible for EFILE.

Enter the client's province or territory where the client lives now if it is different from their mailing address.

Province or territory of self-employment

The entries for the province or territory of residence and of self-employment must be the same or the client is not eligible to EFILE, unless a Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, is being filed.

Date of entry

Enter the client's immigration date. The year must be the same as the year of the tax return.

Date of departure

Enter the client’s emigration date. The year must be the same as the year of the tax return.

Your spouse's or common-law partner's information

Spouse's or common-law partner's first name

The CRA uses only the first four characters entered for the spouse's or common-law partner's given name. A period is valid with the exception of the first character.

Spouse’s or common-law partner’s SIN

Ensure that the client’s SIN has not been entered as the spouse’s or common-law partner’s SIN.

Spouse's or common-law partner's net income

Enter the spouse’s or common-law partner’s net income, even if the amount is “0.”

Spouse’s or common-law partner’s universal child care benefit (UCCB)

The spouse or common-law partner who has the lower net income (whether a return would be filed or not) must report the UCCB income. Enter the amount of the UCCB and/or any UCCB repayment reported by the spouse or common-law partner with the lower net income.

Residency information for tax administration agreements

Yukon First Nation identification numbers

The acceptable entries for clients living on the Settlement Land of a self-government Yukon First Nation on December 31 of the tax year are:

• 11001 = Carcross/Tagish
• 11002 = Champagne and Aishihik
• 11003 = Kluane
• 11004 = Kwanlin Dun
• 11006 = Little Salmon/Carmacks
• 11007 = Nacho Nyak Dun
• 11009 = Selkirk
• 11010 = Ta’an Kwäch’än
• 11011 = Teslin Tlingit
• 11012 = Tr’ondëk Hwëch’in
• 11013 = Vuntut Gwitchin

Telephone number

On page 8 of the return, enter the three digits of the area code followed by the telephone number. Do not key spaces or dashes. Always enter the client’s telephone number on discounted returns.

Tax return specifications

This part contains specific instructions as they relate to the preparation of the electronic return. Most of the information you may require to complete the return is contained in the Federal Income Tax and Benefit Information and other supplementary guides.

Assessment under subsection 152(7)

Under certain criteria, the CRA has the authority under subsection 152(7) of the Income Tax Act to prepare and assess a return on behalf of a taxpayer. The taxpayer is required by law to pay the taxes owing on the assessment but has the right to submit a return to amend the 152(7) assessment. The CRA will accept the amended return electronically. However, the amended return must not contain more than 80 line changes; otherwise, a paper return is required.

Canada Pension Plan/Quebec Pension Plan (CPP/QPP) contributions

When making an entry for the CPP/QPP pensionable earnings, do not reduce by the basic CPP/QPP exemption.

Where the client is electing to pay additional CPP contributions (Form CPT20, Election to Pay Canada Pension Plan Contributions), enter the amount of the elective income not shown on a T4 slip on line 50373, and the election amounts related to under-deducted T4 contributions on line 50399.

Canada Recovery Benefits Act

The Canada Recovery Benefits Act was enacted on October 2, 2020, to provide the following payments:

• Canada Recovery Benefit (CRB) – Reported under code 202 on the T4A slip.
• Canada Recovery Sickness Benefit (CRSB) – Reported under code 203 on the T4A slip.
• Canada Recovery Caregiving Benefit (CRCB) – Reported under code 204 on the T4A slip.

The CRA will withhold income tax at source on these payments. Report the income on line 13000 and include the tax withheld on line 43700. The software should build line 53450 with the amount of the reported T4A income.

The Canada Recovery Benefit (code 202 of the T4A slip) is subject to claw back under certain conditions. Calculate the repayment using the Federal Worksheet and report the amount, if any, on line 23500 (Social benefits repayment) of the tax return.

Include on line 23200 the amount of all federal and/or provincial or territorial COVID-19 benefit repayments.

Communal organizations

Income allocated to members of a communal organization is reported in box 26 on a T3 slip. The software should build line 53650 with this income. Such income would be considered “earned income” for registered retirement savings plan (RRSP) purposes. However, members of a communal organization are not permitted to contribute to a RRSP or claim a deduction for RRSP on line 20800 on the return.

This income is also considered working income for the purposes of the Canada workers benefit (CWB). Such income as reported on lines 13500 to 14300 will be included in the calculation of the CWB on Schedule 6.

Deceased returns

When a valid election is made under subsection 104(13.4) of the Income Tax Act, the software should build the indicator for this election to "1." It is the only valid entry for this indicator. The election must also be accompanied by the amount of the election. The software must build line 52080 with the election amount. The software must not use $0 as the election amount or build line 52080 to $1 for processing purposes. For more on this election and other information, see Guide T4011, Preparing Returns for Deceased Persons.

Direct deposit requests

By providing banking information, the client authorizes the Receiver General to deposit in the bank account designated any amounts payable by the CRA. This authorization replaces all previous authorizations on file. The client must contact the CRA in order to stop the service.

Starting direct deposit for the following types of return is not allowed:

• Pre-bankruptcy returns.
• Subsection 70(1) returns for deceased clients.

Discounted returns

Ensure the amounts entered on lines 65050, 65070 and 65090 on the Form RC71, Statement of Discounting Transaction, are correct. Do not submit the form to the CRA unless requested.

Discounting on the following types of return is not allowed:

• Emigrant returns.
• Section 116 for disposition of taxable Canadian property by non-residents.
• Section 250 for deemed residents.

Elections indicator

Indicate if the client is making an election, designation, agreement, waiver, or special elective return at the time of filing the tax return. The software should build line 9906 with an entry of "1." An entry on this line does not constitute an election; it is designed only to inform the CRA that an election, a letter or note containing the required information is being submitted in paper format.

Do not indicate an election which is not required to be made at the time of filing the return. These elections will have to be submitted in accordance with the provisions of the Act.

Foreign business income

If foreign business income is from box 24 of a T3 slip, Statement of Trust Income Allocations and Designations, the amount must be reported on lines 13499 and 13500 of the tax return. A selected financial data (SFD) statement type 02 must be completed. Complete the lines in the identification area of the SFD as follows:

• Your name and business name – Enter taxpayer's name.
• Business address (including city, province or territory and postal code) – Enter taxpayer's address of residence on the tax return.
• Fiscal period – From January 1 to December 31 (or to the date of death) of the tax year.
• Industry code – Enter 526912.
• Lines 8000, 8299, 8519, 9369 and 9946 – Enter the amount from box 24 of the T3 slip.

Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election

Working beneficiaries aged 65 to 70 who elected to opt out of contributing to the CPP or are revoking a prior election should submit the completed Form CPT30 to their employer and send a copy to the CRA. The election/revocation will apply to all income from pensionable employment, including self-employment earnings. Send the original completed form to the Winnipeg Tax Centre using the address shown on the back of the form. Individuals with self-employed income only should not use Form CPT30 when they want to revoke a previous election. Instead, they should indicate the revocation effective date on Schedule 8 when they file their tax return.

Paragraph 19(d) of the Canada Pension Plan Act requires that the CPP basic exemption be calculated differently in the year an individual commences receiving CPP retirement benefits. Individuals can commence receiving CPP retirement benefits at age 60. This provision is intended to protect an individual's entitlement to the survivor, child and death benefits, based on pre-retirement earnings. The provision under paragraph 19(d) does not apply to the Quebec Pension Plan.

Form RC381, Inter-Provincial Calculation for CPP and QPP Contributions and Overpayments

The Canada Pension Plan (CPP) Act was amended to provide for the enhancement of pensions. The government of Quebec also adopted legislative amendments to enhance the Quebec Pension Plan (QPP) in a similar way to the federal plan. The enhancements are funded by additional enhanced contributions beginning in January 2019.

Since 2013, the CPP and the QPP have different base contribution rates. The CRA must be able to calculate the CPP and/or QPP contributions separately using the applicable rate(s). Complete the Form RC381 if one of the following situations applies:

• Your client earned employment income in the province of Quebec in the tax year and they were a resident of a province or territory other than Quebec on December 31 of the tax year.
• Your client earned employment income in a province or territory other than Quebec in the tax year and they were a resident of Quebec on December 31 of the tax year.

If these situations do not apply, complete Schedule 8, Canada Pension Plan Contributions and Overpayment, or Schedule 8, Quebec Pension Plan Contributions, whichever applies.

The CRA will use the information you provided on the Form RC381 to determine the portion of the yearly basic exemption, and the maximum contributory earnings, that will be applied to the CPP and the portion that will be applied to the QPP.

Form T1A, Request for Loss Carryback

Where a carryback of a current year loss under sections 111 and 41 of the Income Tax Act is requested, a reassessment to the applicable year will be processed and a notice of reassessment will be issued when the adjustment is complete. The CRA’s goal is to issue a reassessment notice within an average of eight weeks. For electronic returns, the Form T1A does not have to be submitted to the CRA.

Instalments

Ensure the instalment payments that the client remitted to the CRA are included on line 47600. Do not include instalment payments as tax deducted at source.

Investment tax credit

Where a carryback of an investment tax credit is requested, a reassessment to the applicable year will be processed and a notice of reassessment will be issued when the adjustment is complete. The CRA’s goal is to issue a reassessment notice within an average of eight weeks.

Manitoba tax credits

If a client who is married or living common-law is entitled to a claim based on entries made on the Form MB479, but no claim is being made because the spouse or common-law partner is making the claim, ensure your tax preparation software does not permit the transfer of the lines from the Form MB479.

If there is an entry for the spouse’s or common-law partner’s net income and there is a claim for the spouse or common-law partner amount, line 60900 for the personal tax credit is required even where the calculated Manitoba personal tax credit is zero.

When claiming the Manitoba refundable tax credits on the Form MB479 such as the personal tax credit, education property tax credit, renters tax credit, seniors’ school tax rebate and/or school tax credit for homeowners, and the client and/or their spouse or common-law partner received employment and income assistance (EIA) payments from the province of Manitoba in the tax year, enter on line 61255 the number from box 14 on the T5007 slip. If box 14 is blank, "0" or "0.00," enter "101." If there are multiple slips, enter the lowest number shown in box 14. If the client and their spouse or common-law partner both received EIA, enter the number shown in box 14 of either the client’s or their spouse’s T5007 slip, whichever is less.

Where the client and their spouse or common-law partner only received social assistance benefits from the federal government and/or from a province or territory other than Manitoba, enter "100" on line 61255.

Newcomers to Canada

To calculate whether to claim the full or prorated non-refundable tax credits, indicate in Canadian dollars if the client has any Canadian sourced non-resident income, excluding the income subject to Part XIII tax, and/or any Canadian sourced non-resident income subject to Part XIII tax plus foreign sourced non-resident income. The software should build line 52920 and line 52930 respectively with these income. Go to canada.ca/cra-non-residents-canada for more information. Refer to the pamphlet T4055, Newcomers to Canada, for the proration calculations.

For the following income, report only the income earned in Canada:

• Line 11300 – Old age security (OAS) pension
• Line 11400 – CPP or QPP benefits
• Line 11500 – Other pensions or superannuation
• Line 11900 – Employment insurance (EI) and other benefits
• Line 12600 – Rental income (or loss)
• Line 12900 – Registered retirement savings plan (RRSP) income

No income

Indicate when the client has no income to report, that is, no entry on any line from 10100 to 15000. The software should build line 9915 with an entry of "1."

Patronage allowances

Where the client received non-taxable patronage allocations on which income tax was withheld, claim the tax deducted on line 43700. Indicate the income on which this tax was deducted. The software should build line 53450 with this income amount.

Placement agency

If a self-employed worker, engaged by a placement agency, received a T4 slip with CPP/QPP and EI premiums deducted, with code 11 in box 29, and no entry in box 14, update as follows:

If boxes 26 and 28 are blank, update the pensionable CPP earnings (line 50339) and/or the pensionable QPP earnings (line 50329) with the lesser of:

• The gross self-employment income reported in respect of that T4 slip; or
• The maximum CPP/QPP pensionable earnings for the year.

If boxes 24 and 28 are blank, update the EI insurable earnings (line 54780) with the lesser of:

• The gross self-employment income reported in respect of that T4 slip; or
• The maximum EI insurable earnings for the year.

The software should build line 53470 with the amount of the T4 placement agency income reported on the self-employment lines.

If T4 placement agency income is the only income reported on the self-employment lines, enter 1 on line 50371 on the Schedule 8 or the Form RC381.

Pre-bankruptcy returns

All income reported and deductions claimed are from January 1 to the day before the date of bankruptcy.

The number of months used in the “2023 Enrolment information” section on the Schedule 11, Federal Tuition, Education, and Textbook Amounts and Canada Training Credit, cannot exceed the number of months up to and including the month the client became bankrupt.

Line 32600 (federal amounts transferred from your spouse or common-law partner) is prorated based on the number of days from January 1 to the day before the date of bankruptcy. Do not prorate the lines on the Schedule 2 (lines 35200, 35300, 35500, 35700, 36000, 36100).

The following federal claims are not allowed on a pre-bankruptcy return:

• Line 24600 – Home Buyers’ Plan (HBP) repayment
• Line 24620 – Lifelong Learning Plan (LLP) repayment
• Line 41500 – Advanced Canada workers benefit
• Line 44800 – CPP or QPP overpayment
• Line 45000 – EI overpayment
• Line 45200 – Refundable medical expense supplement
• Line 45300 – Canada workers benefit (CWB)
• Line 45350 – Canada training credit (CTC)
• Line 45355 – Multigenerational home renovation tax credit
• Line 48800 – Refund transfer to the instalment account for the following year

The following types of pre-bankruptcy returns are not accepted for EFILE. A paper return is required:

• There is an immigration date on the return.
• There is an emigration date on the return.
• The return is filed under section 116.
• The return is filed under section 250.

Refund transfer

Indicate if the client wants to transfer the refund to the next year’s instalment account. The software should build line 48800 with an entry of "1." In this instance, a request for direct deposit of the refund is not permitted.

Rental income

If more than one rental property is covered by the SFD record, enter the address and postal code of the property that generated the highest gross rental income.

Restricted farm loss

If the chief source of income is neither from farming nor from a combination of farming and some other source of income, you can only deduct a portion of the farm loss for the year. The portion of the loss that you cannot deduct becomes a restricted farm loss. The restricted farm loss limit is $17,500 annually. This means that if your net farm loss is $32,500 or more, you can deduct $17,500 from the other income. The software should build line 54950 with the total farming loss. For more information, see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Selected financial data (SFD) records

Complete a SFD record using the applicable type when the client is reporting any of the following:

• SFD type 01 – Form T776, Statement of Real Estate Rentals
• SFD type 02 – Form T2125, Statement of Business or Professional Activities (business and commissions)
• SFD type 03 – Form T2125, Statement of Business or Professional Activities (professional)
• SFD type 04 – Form T2121, Statement of Fishing Activities
• SFD type 05 – Form T2042, Statement of Farming Activities
• SFD type 06 – AgriStability and AgriInvest programs (Form T1163 and Form T1273)
• SFD type 07 – Form T777, Statement of Employment Expenses
• SFD type 08 – Form TL2, Claim for Meals and Lodging Expenses
• SFD type 09 – AgriStability and AgriInvest programs (pages 1 and 7 of Form T1273)
• SFD type 11 – Form T2091(IND), Designation of a Property as a Principal Residence by an Individual
• SFD type 12 – Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual

Note also the following:

• A separate SFD record is to be completed for each source of income or expenses or for each property disposed.
• SFD type 06 is to record the information from the Form T1163 and from pages 1 to 5 of the Form T1273. The supplementary information on page 7 of the Form T1273 is recorded as SFD type 09.
• There must be one SFD type 06 for every SFD type 09 and they count as two different SFDs.
• A client reporting more than 80 lines in the free format area of SFD types 01 to 08 is not eligible to EFILE. Refer to Exclusions from electronic filing for the maximum occurrences allowed for SFD type 09.
• A client reporting more than 12 SFD records is not eligible to EFILE.
• A SFD using the appropriate type 01, 02, 03, 04, or 05 is required for a client who is an active partner or is reporting rental, fishing or farming income (or loss) from a T5013 slip. There is no requirement to capture the address information from a T5013 slip.

Spouse’s or common-law partner’s net income

The spouse’s or common-law partner’s net income is captured in the “Identification and other information” area on the return. This income will be used in the calculations for non-refundable and refundable tax credits, and provincial or territorial tax and credits. This information will also be used to calculate the GST/HST credit. Where the marital status is married or living common-law, indicate if the net income is zero or negative. The software should build line 9918 with an entry of "1."

If your client is a newcomer to Canada, indicate the spouse’s or common-law partner’s net income earned during the period the client was living in Canada and the net income earned during the period the client was living outside Canada. The software should build line 52630 and line 52670 respectively with the income amount. Also indicate if either amount is zero or negative. The software should build the line with an entry of "1" for processing purposes.

Tax deducted

If your client resides outside the province of Quebec and was employed in the province of Quebec, indicate the income and tax deducted on the relevé 1 (information slip from the province of Quebec).

When there is an election to split pension income on the Form T1032, include the amount of income from the Quebec information slips that are in the client’s name, regardless if a portion has been transferred to the spouse or common-law partner on line 21000. Likewise, where Quebec tax deductions are included on line 68050, only include the amount if the slips are in the client’s name.

The software should build line 53490 with the Quebec tax deducted and line 53500 with the income on which the Quebec tax was withheld.

Tax deducted transfer

Line 43800 is applicable only for residents of Quebec who were employed outside the province of Quebec in the tax year. Do not include tax deductions withheld on CPP/QPP and/or EI benefits.

Tax preparer code

When the return was prepared by a tax professional, indicate whether a fee was charged. The software should build line 49000 with an entry of "1" if a fee was charged, and with an entry of "2" if no fee was charged.

Volunteer program

Indicate if the return was completed under the Community Volunteer Income Tax Program. The software should build line 48700 with an entry of "1."

Wage-loss replacement plans

Indicate if an amount of premiums paid to a wage-loss replacement plan has been used to reduce the benefits reported. Report only the amount of the net benefits on line 10400. Enter the contributions made to a wage-loss replacement plan on line 10130.

The software should build line 9916 with the amount of premiums used to reduce the benefits reported on line 10400.

Canadian Indians

Status Indians are subject to the same tax rules as other Canadian residents unless their income is eligible for tax exemption under section 87 of the Indian Act. The exemption applies to the income that is earned on a reserve or that is considered to be earned on a reserve, as well as to goods bought on, or delivered to, a reserve. However, a member of a First Nations group that has negotiated a self-governing or tax agreement with the Government of Canada may not qualify for the exemption under section 87 of the Indian Act. To find out, contact the First Nations government.

Indicate on the return if the client has any income that is exempt under the Indian Act. If yes, complete Form T90, Income Exempt from Tax under the Indian Act. The CRA uses information provided on the form to calculate the Canada training credit limit, and if applicable, the Canada workers benefit.

See below for some examples of exempt income that a status Indian may receive.

Employment income

Non-taxable salary or wages paid to status Indians are indicated on a T4 slip as follows, if the total employment income is exempt. For working income calculation purposes, the non-taxable earnings from box 71 should be reported on line 1 of Form T90 and be included on line 10000 (Total exempt working income).

Application for coverage under the CPP (Form CPT124):

• Box 14 should be blank. In the "Other information" area on the T4 slip, box 71 should indicate the amount of the non-taxable earnings for a status Indian employee.
• Indicate the non-taxable earnings from box 71 that is included in box 14. The software should build line 53470 with this amount.
• Update line 50329 (QPP pensionable earnings where the province of employment is Quebec) and/or line 50339 (CPP pensionable earnings where the province of employment is other than Quebec) with the amount indicated in box 26 (maximum of $66,600 per slip).

No application for coverage under the CPP:

• Box 14 should be blank. In the "Other information" area on the T4 slip, box 71 should indicate the amount of the non-taxable earnings for a status Indian employee.
• Indicate the non-taxable earnings from box 71 that is included in box 14. The software should build line 53470 with this amount.

Indicate if the client has only exempt T4 income and no other income to report (no entries are being made on lines 10100 to 15000). The software should build line 9915 with an entry of "1."

If the client has exempt T4 income and also other income to report (entries are being made on lines 10400 to 15000), the software should build line 53470 with the non-taxable earnings from box 71.

Do not claim any deductions withheld for registered pension plan contributions, union or professional dues and/or other employment expenses on the non-taxable earnings. Where CPP/QPP contributions and/or EI premiums were withheld, update the appropriate lines.

Self-employment income

Tax-exempt self-employed income is reported in box 88 of the T4 slip. For working income calculation purposes, the exempt net self-employment income (excluding losses) should be reported on line 3 of Form T90 and be included on line 10000 (Total exempt working income).

Where the total self-employment income is exempt, do not make any entry on the self-employment lines and do not prepare any SFD records.

Where the client is electing to pay additional CPP contributions on the self-employment income not shown on a T4 slip (Form CPT20), enter the exempt net self-employment income on line 50373 on the Schedule 8 or Form RC381.

Employment insurance, provincial parental insurance plan, and other benefits (including EI and Quebec maternity and parental benefits)

These benefits are reported on a T4E slip, as follows:

• Total benefits paid (box 14)
• Tax-exempt benefits (box 18, included in box 14)
• EI maternity and parental benefits (not identified on the T4E slip)
• Income tax deducted (box 22)
• Provincial parental insurance plan (PPIP) benefits (box 36, included in box 14)

Report these amounts on the Form T90 and/or on the return as follows:

• Box 14 minus box 18 – line 11900 on the return
• Box 18 – Line 8 on the Form T90
• Exempt EI maternity and paternal benefits and PPIP benefits – line 10019 on Form T90
• EI maternity and paternal benefits and PPIP benefits (taxable portion) – Line 11905 on the return
• Box 22 – line 43700 on the return

Where tax was withheld on the income (box 22 on the T4E slip and line 43700 on the return), the software should build line 53450 with the income on which the tax was withheld.

CPP/QPP benefits

Enter the amount of benefits from box 20 of the T4A(P) slip on line 11400 on the return. Enter the tax-exempt portion on line 23200 of the return and on line 5 of Form T90.

Training allowances

The amount of training allowances received that is tax-exempt should not be included as income on the return. However, for working income calculation purposes, include the tax-exempt training allowances that would have otherwise been reported on line 10400 of the return on line 2 of the Form T90.

Other types of exempt income and tax deducted at source on exempt income

Indicate any other types of exempt income not received from a T4 slip or not mentioned above on the appropriate lines on the Form T90. Indicate any tax withheld on the income and the software should build line 53450 with the income on which the tax was withheld.

Not all exempt income reported should be included on line 23200, Other deductions.

Pooled registered pension plans

Complete Form RC383 to allow the CRA to calculate and track your client’s non-deductible pooled registered pension plans (PRPP) room and non-deductible PRPP contributions on tax-exempt earned income. Enter the total amount of tax-exempt employment earnings on line 58750. Enter the total tax-exempt self-employment earnings and other tax-exempt earned income on line 58810.

Gross tax-exempt employment earnings are reported in box 71 of the T4 slip, and gross tax-exempt self-employment earnings are reported in box 88 of the T4 slip. Your client may have other tax-exempt earned income not included on an information slip.

Contributions to a PRPP from tax-exempt income are not deductible on the taxpayer’s return; however, they can be used as a repayment under the HBP or the LLP.

Canada workers benefit

Complete Form T90 to report income that is tax-exempt under the Indian Act. The information provided may be used to calculate the Canada workers benefit (CWB) for the tax year. Indicate on line 38105 on the Schedule 6 whether your client chooses to include the tax-exempt income in calculating the CWB.

If your client has an eligible spouse for CWB purposes, include on line 38109 the eligible spouse’s tax-exempt part of all income earned or received on a reserve less the deductions related to that income or an allowance received as an emergency volunteer.

line 38107 should include the eligible spouse’s tax-exempt part of working income earned on a reserve or an allowance received as an emergency volunteer.

Canada training credit limit

Subsection 122.91(2) of the Income Tax Act introduced the Canada training credit limit (CTCL) effective for the 2019 and subsequent tax years and a new refundable tax credit called the Canada training credit (CTC) effective for the 2020 and subsequent tax years. Eligible individuals will be able to accumulate $250 each year in the calculation of their CTCL, up to a maximum of $5,000 over their lifetime. The annual accumulation of the $250 amount will start in 2019 based on eligibility determined using information from the Form T90 and the tax return filed for the 2019 tax year. Eligible individuals will be able to claim the Canada training credit beginning with the 2020 tax return. Refer to the Federal Income Tax and Benefit Information for more information.

Residency type and residency status

Starting with the 2023 tax year, the EFILE service will begin accepting and processing the following non-resident types:

• Emigrant taxpayers
• Deemed residents of Canada
• Non-residents filing returns under section 116

It is mandatory for the software to indicate the residency type on all resident, non-resident, deemed resident, immigrant and emigrant returns. Depending on the residency type, software must build line 17700 with the applicable residency status indicator.

There are seven possible residency types.

Residency types

Residency Type		Action
1	Canadian resident	Accept and process the return.
2	Factual resident	Software must require the taxpayer to indicate their residency status as per Form T1248 Schedule D, Information About Your Residency Status, and generate line 17700 with the applicable residency status indicator. There are three possible residency statuses. Only residency status 5 (line 17700 = 5) will be accepted for EFILE. 1 = Non-resident 2 = Deemed non-resident 5 = Factual resident
3	Non-resident or Deemed resident (other than residency type 6 or 7)	Software must require the taxpayer to provide information about their residency status as per 5013-R, Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada, and generate line 17700 with the applicable residency status indicator. There are four possible residency statuses: 1 = Non-resident 2 = Deemed non-resident 3 = Deemed resident (183 days or more) 4 = Deemed resident (other reasons)
4	Immigrant – entered Canada within the tax year	Accept and process the return.
5	Emigrant – left Canada within the tax year	Software must ask the taxpayer if they are attempting to submit a form T1243, T1244 and/or T1161. If “Yes” – Software will produce a warning that a paper return is required. None of the lines on the above forms are valid for EFILE. If “No” – Accept and process the return based on a valid emigration date.
6	Deemed resident reporting only business income with a permanent establishment in Canada	These returns are not accepted for EFILE.
7	Deemed resident reporting income from a business with a permanent establishment outside Canada and/or rental income from a property located outside Canada	These returns are not accepted for EFILE.

There are five possible residency statuses.

Residency status

Residency status		Action
1	Non-resident	If the residency status is “1” or “2,” software must ask the taxpayer which of the following returns they are attempting to file: Section 115 – Non-resident reporting employment income Section 116 – Non-residents reporting only a disposition of taxable Canadian property Section 216 – Non-resident reporting only Canadian rental income Section 217 – Non-resident reporting Canadian pension income Only returns filed under section 116 will be accepted for EFILE.
2	Deemed non-resident
3	Deemed resident (183 days or more)	Residency status = 3 is not accepted for EFILE. A paper return will be required.
4	Deemed resident (other reasons)	Accept the return as a deemed resident filing under section 250.
5	Factual resident	Accept and process the return.

Information for tax preparers and software developers

Exclusions from electronic filing

Electronic filing (EFILE) is only available for a tax return for the current and six prior tax years. While most taxpayers will qualify to have their returns filed using EFILE, certain situations may still exclude a taxpayer from EFILE for these years. Please refer to the following criteria. Go to canada.ca/cra-efile-file-returns and select "Exclusions" for a full list of exclusions.

1. Foreign workers employed in Canada under the Seasonal Agricultural Workers Program who are non-residents or deemed non-residents. Refer to the guide Seasonal Agricultural Workers Program.
2. Taxpayers who are deemed residents filing as Sojourners or Commuters are excluded. Only deemed residents for other reasons [i.e., line 17700 (Residency status code) = 4] are accepted through EFILE. Deemed residents who are reporting self-employment income on Form T2203, or rental income from a property located outside Canada, remain as exclusions.
3. Taxpayers who died prior to the current tax year. Early filed and elective deceased returns also remain as exclusions.
4. Taxpayers whose social insurance number (SIN) begins with a zero. Only newcomers to Canada and/or those filing their returns under section 116 with a SIN starting with a zero are eligible to use EFILE.
5. For taxpayers who are coded bankrupt according to the Canada Revenue Agency’s records, their tax return for the year immediately prior to the year of bankruptcy is an exclusion and must be filed by the trustee in bankruptcy (if not previously filed by the taxpayer). The in-bankruptcy and post-bankruptcy returns are also exclusions from EFILE. Only pre-bankruptcy returns that are not early filed are accepted through EFILE.
6. Taxpayers who are emigrants filing one of forms T1243, T1244 and/or T1161, or are reporting self-employment income on Form T2203, are excluded. Otherwise, an emigrant return is accepted through EFILE.
7. Taxpayers who are non-residents are excluded, unless the return is filed under section 116 of the Income Tax Act (ITA).
8. Taxpayers who are filing or reporting the following forms and returns are excluded from EFILE:
   1. Schedule A, Statement of World Income – Non-Residents of Canada, unless it is for a return filed under section 116 of the ITA.
   2. Schedule B, Allowable Amount of Non-Refundable Tax Credits – Non-Resident of Canada, unless it is for a return filed under section 116 of the ITA.
   3. Schedule C, Electing Under Section 217 of the Income Tax Act – Non-Resident of Canada.
   4. Form T1136, Old Age Security Return of Income.
   5. Form T1159, Income Tax Return for Electing Under Section 216.
   6. Income from the following information slips:
      1. NR4, Statement of amounts paid or credited to non-residents of Canada.
      2. T4A-NR, Statement of Fees, Commissions, or Other Amounts Paid to Non-Residents for Services Rendered in Canada.
      3. NR-OAS, Statement of Old Age Security Pension Paid or Credited to Non-Residents of Canada.
9. Taxpayers who are filing Form RC199, Voluntary Disclosures Program (VDP), Taxpayer Agreement, or are making a request to the VDP.
10. Taxpayers who are electing to defer tax on a distribution of spin-off shares by foreign corporations.
11. Taxpayers who are reporting any of the following:
    1. Canadian-source income from Lloyds of London.
    2. Employment income earned from an international organization.
    3. Lump-sum pension income accrued to December 31, 1971.
    4. More than 12 selected financial data (SFD) records.
    5. Ontario, Saskatchewan, British Columbia, or Yukon qualifying environmental (mining reclamation) trust tax credit.
    6. Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment.
    7. More than 80 lines present in the free format area of SFD types 01 to 08.
12. Taxpayers who are claiming any of the following:
    1. Less than the maximum federal foreign tax credit.
    2. Business income tax paid to more than three foreign countries.
    3. Non-business income tax paid to more than three foreign countries.
    4. Deduction for scientific research and experimental development expenses.
    5. Form T89, Alberta Stock Savings Plan Tax Credit.
    6. Nova Scotia research and development tax credit recapture.
13. Taxpayers who are reporting farming income with the AgriStability and AgriInvest programs which involves any of the following:
    1. Farming income from a partnership reported on a T5013 slip.
    2. Farming income from a partnership that includes a corporate partner.
    3. Status Indian reporting tax-exempt self-employed income.
    4. SFD type 06 that has exceeded the maximum occurrences for the following lines:
       1. 29 occurrences of "Total of commodity sales and program payments" on line 9950.
       2. 29 occurrences of "Total of commodity purchases and repayment of program benefits" on line 9960.
    5. SFD type 09 that has exceeded the maximum occurrences in the following sections:
       1. 50 occurrences for "Crop inventory valuation and productive capacity."
       2. 50 occurrences for "Livestock inventory valuation."
       3. 8 occurrences for "Purchased inputs."
       4. 19 occurrences for "Livestock productive capacity."
       5. 8 occurrences for "Deferred income and receivables."
       6. 8 occurrences for "Accounts payable."

Appendix A – Provincial and territorial alpha characters

The following characters must be used whenever an entry for a province or a territory is required.

Provincial and territorial alpha characters

Characters	Province/Territory
NL	Newfoundland and Labrador
PE	Prince Edward Island
NS	Nova Scotia
NB	New Brunswick
QC	Quebec
ON	Ontario
MB	Manitoba
SK	Saskatchewan
AB	Alberta
BC	British Columbia
NT	Northwest Territories
YT	Yukon
NU	Nunavut
EX	Other

Appendix B – Valid characters

The following chart illustrates the acceptable characters for some of the identification records. In general, key hyphens using a dash, and Roman numerals are to be keyed as alpha characters.

Appendix C – Treasury Board of Canada addressing standard

The record length for a taxpayer’s street and/or mailing address is 60 characters. In order to ensure that the most accurate address information is captured for mailing purposes, the taxpayer’s address information should be captured in the following order:

Apartment number

When an address includes an alpha character as part of the apartment or unit number, key a hyphen between the apartment or unit number and the street number. Do not key any spaces before or after the hyphen. See the following examples:

• 313D-2233 Main Street
• D-2233 Main Street
• D313-2233 Main Street

Building unit identifier

A number or alpha code which uniquely identifies a unit of a specific type within a building.

Civic site street number

Enter the number assigned to a specific civic site by the official municipality or relevant authority.

Civic site street number suffix

Enter an alpha character or fraction added to a civic site number by an official municipality or relevant authority.

Street direction code

Enter Canada Post Corporation’s mnemonic code for street direction. The acceptable entries are:

• E = East
• N = North
• NE = Northeast
• NW = Northwest
• S = South
• SE = Southeast
• SW = Southwest
• W = West

Street name

Enter the full name of a street, roadway, or artery assigned by an official municipality or relevant authority.

Street type code

Enter the street type code in addition to the street name to uniquely designate the street from other streets having the same street name. See Appendix D.

Appendix D – Street type codes

Street type codes

Street type	Code
Abbey	ABBEY
Acres	ACRES
Allée	ALLÉE
Alley	ALLEY
Autoroute	AUT
Avenue (English)	AVE
Avenue (French)	AV
Bay	BAY
Beach	BEACH
Bend	BEND
Boulevard (English)	BLVD
Boulevard (French)	BOUL
By-Pass	BYPASS
Byway	BYWAY
Campus	CAMPUS
Cape	CAPE
Carré	CAR
Carrefour	CARREF
Centre (English)	CTR
Centre (French)	C
Cercle	CERCLE
Chase	CHASE
Chemin	CH
Circle	CIR
Circuit	CIRCT
Close	CLOSE
Common	COMMON
Concession	CONC
Corners	CRNRS
Côte	CÔTE
Cour	COUR
Cours	COURS
Court	CRT
Cove	COVE
Crescent	CRES
Croissant	CROIS
Crossing	CROSS
Cul-de-sac	CDS
Dale	DALE
Dell	DELL
Diversion	DIVERS
Downs	DOWNS
Drive	DR
Échangeur	ÉCH
End	END
Esplanade	ESPL
Estates	ESTATE
Expressway	EXPY
Extension	EXTEN
Farm	FARM
Field	FIELD
Forest	FOREST
Freeway	FWY
Front	FRONT
Gardens	GDNS
Gate	GATE
Glade	GLADE
Glen	GLEN
Green	GREEN
Grounds	GRNDS
Grove	GROVE
Harbour	HARBR
Heights	HTS
Highlands	HGHLDS
Highway	HWY
Hill	HILL
Hollow	HOLLOW
Île	ÎLE
Impasse	IMP
Inlet	INLET
Island	ISLAND
Key	KEY
Knoll	KNOLL
Landing	LANDNG
Lane	LANE
Limits	LMTS
Line	LINE
Link	LINK
Lookout	LKOUT
Loop	LOOP
Mall	MALL
Manor	MANOR
Maze	MAZE
Meadow	MEADOW
Mews	MEWS
Montée	MONTÉE
Moor	MOOR
Mount	MOUNT
Mountain	MTN
Orchard	ORCH
Parade	PARADE
Parc	PARC
Park	PK
Parkway	PKY
Passage	PASS
Path	PATH
Pathway	PTWAY
Pines	PINES
Place (English)	PL
Place (French)	PLACE
Plateau	PLAT
Plaza	PLAZA
Point	PT
Pointe	POINTE
Port	PORT
Private	PVT
Promenade	PROM
Quai	QUAI
Run	RUN
Sentier	SENT
Square	SQ
Street	ST
Subdivision	SUBDIV
Terrace	TERR
Terrasse	TSSE
Thicket	THICK
Towers	TOWERS
Townline	TLINE
Trail	TRAIL
Turnabout	TRNABT
Vale	VALE
Via	VIA
View	VIEW
Village	VILLGE
Villas	VILLAS
Vista	VISTA
Voie	VOIE
Walk	WALK
Way	WAY
Wharf	WHARF
Wood	WOOD
Wynd	WYND

Appendix E – Lines that can be negative

Only the lines listed below may contain a negative value.

Lines that can be negative

Line	Description	Schedule or form
8519	Gross profit (or loss)	T2125, SFD type 02 only
9369	Net income (loss) before adjustments	T776, T2121, T2125
9899	Net income (loss) before inventory adjustments	T2042
9944	Net income (loss) after adjustments	T1163, T1273
9946	Your net income (loss)	T776, T2042, T2121, T2125
9946	Net farming income (loss)	T1163, T1273
9969	Net income (loss) before adjustments	T1163, T1273
10700	Gain (or loss) from disposition of qualified small business corporation shares	Schedule 3
11000	Gain (or loss) from disposition of qualified farm or fishing property	Schedule 3
12200	Net partnership income: limited or non-active partners only	Page 3 of the return
12400	Gain (or loss) from disposition of mortgage foreclosures and conditional sales repossessions of a qualified farm or fishing property	Schedule 3
12600	Net rental income (loss)	Page 3 of the return
12700	Taxable capital gains (or net capital loss) Note: Line 12700 can be negative for deceased taxpayers only.	Page 3 of the return
13200	Gain (or loss) from disposition of publicly traded shares, mutual fund units, deferral of eligible small business corporation shares, and other shares	Schedule 3
13500	Net business income (loss)	Page 3 of the return
13700	Net professional income (loss)	Page 3 of the return
13800	Gain (or loss) from disposition of real estate, depreciable property, and other properties	Schedule 3
13900	Net commission income (loss)	Page 3 of the return
14100	Net farming income (loss)	Page 23 of the tax return
14300	Net fishing income (loss)	Page 3 of the return
15000	Total income	Page 3 of the return
15300	Gain (or loss) from disposition of bonds, debentures, promissory notes, crypto-assets, and other similar properties	Schedule 3
15500	Gain (or loss) from disposition of other mortgage foreclosures and conditional sales repossessions	Schedule 3
17400	Capital gains (or losses) from T5, T5013, and T4PS information slips	Schedule 3
17600	Capital gains (or losses) from T3 information slips	Schedule 3
26000	Taxable income	Page 5 of the return
53550	Amount of self-employment net earnings reported on self-employed lines in relation to T4 self-employment on which EI premiums through employment were deducted	See Appendix F
55070	RRSP earned income calculation	See Appendix F
55300	Earned income adjustment amount	See Appendix F
58810	Tax-exempt self-employment earnings and other tax-exempt earned income	RC383
66848	Amount of the most recent reserves claimed on line 66840	T2017
66905	Amount of the most recent reserves claimed on line 66850	T2017
67060	Total reserve	T2017

Appendix F – Summary of supporting lines

The following is a list of the supporting lines used in EFILE that are not shown on the tax returns, schedules or forms. Where a paper return is required to be filed, these lines should not be printed on that return.

Summary of supporting lines

Line	Description	Principle line
8001	Indicator for $0 "basic credit for self" claimed by the spouse or common-law partner	62480 (NT479)
9900	Additional business income	T1139
9901	Last year's additional business income	T1139
9902	Number of eligible children age 6 or younger for whom the disability amount cannot be claimed	21400 (T778)
9903	Child care expenses paid for eligible age 6 or younger for whom the disability amount cannot be claimed	21400 (T778)
9904	Number of eligible children between age 7 and age 16, and eligible children age 17 or older with a mental or physical impairment for whom the disability amount cannot be claimed	21400 (T778)
9906	Election indicator
9907	Annuity income	11500
9908	RRSP annuity income	12900
9909	Bank interest	12100
9910	Bond interest	12100
9911	Foreign non-business income on T3 slips	12100
9912	Interest from mortgages	12100
9913	Interest expense	22100
9914	Indicator for no provincial assistance received	61140 (MB479)
9915	Indicator that the taxpayer has no income
9916	Premiums paid to a wage-loss replacement plan	10400
9917	Indicator that no old age security pension was received	11300
9918	Indicator that the spouse's or common-law partner's net income is zero or negative
9919	Joint accounts	12100
9921	Number of eligible children born in the current tax year or earlier for whom the disability amount can be claimed	21400 (T778)
9922	Indicator for no pension adjustment	20600
9971	Child care expenses paid for eligible children between age 7 and age 16, and eligible children age 17 or older with a mental or physical impairment for whom the disability amount cannot be claimed	21400 (T778)
9972	Child care expenses paid for eligible children born in the current tax year or earlier for whom the disability amount can be claimed	21400 (T778)
46000	Direct deposit – Branch number
46100	Direct deposit – Institution number
46200	Direct deposit – Account number
48800	Refund transfer	48400
50260	EI and PPIP premiums (non-Quebec return)	31200
50270	Total PPIP premiums	31200
50280	Total EI premiums	31200
50290	PPIP indicator	31210
50310	CPP and QPP contributions	30800
50320	QPP contributions on self-employment and other earnings	22200, 31000
50410	Capital gains at 100%	12700 (Schedule 3)
51170	Number of full weeks in attendance at a designated educational institution or secondary school	21500
52080	Subsection 104(13.4) election amount
52300	Spouse's or common-law partner's capital gains from mortgage foreclosures and conditional sales repossessions	45200, 45300, 60350, 61580, 61880, 61970, 63390
52630	Spouse's or common-law partner's net income while the taxpayer is living in Canada
52670	Spouse's or common-law partner's net income while the taxpayer is living outside of Canada
52730	Net foreign non-business income from the first foreign country	43300 (T2209)
52740	Net foreign non-business income from the second foreign country	43300 (T2209)
52750	Net foreign non-business income from the third foreign country	43300 (T2209)
52760	Business income tax paid to the first foreign country	43400 (T2209)
52770	Non-business income tax paid to first foreign country	43100 (T2209)
52780	Non-business income tax paid to second foreign country	43100 (T2209)
52790	Non-business income tax paid to third foreign country	43100 (T2209)
52800	Net business income from the first foreign country	43900 (T2209)
52810	Net business income from the second foreign country	43900 (T2209)
52820	Net business income from the third foreign country	43900 (T2209)
52830	Business income tax paid to the second foreign country	43400 (T2209)
52840	Business income tax paid to the third foreign country	43400 (T2209)
52850	Vow of perpetual poverty	25600
52920	Canadian sourced non-resident income, excluding the income subject to Part XIII tax
52930	Canadian sourced non-resident income subject to Part XIII tax plus foreign sourced non-resident income
53080	BC logging tax paid
53210	QC logging tax paid
53300	Indicator for filing due date for tax shelter, or inactive or active business	12200
53350	BC logging income	53080
53370	CCA on certified film property	23200
53440	Ineligible pension income	11500, 11600, 12900, 25600, 31400
53450	Income with tax withheld supported by information slips	10400, 11900, 13000, 13500, 13700, 13900, 14100, 14300, 43700
53470	T4 earning reduction	10100
53490	Quebec tax deducted (from slips in the taxpayer's name)	43700
53500	Income on which Quebec tax was withheld (from slips in the taxpayer's name)	43700
53510	Amount of OASP repaid	23200
53530	Limited partnership loss carryforward from 1986 and 1987	25100
53540	Limited partnership loss available for carryforward	12200, 12600
53550	Amount of self-employment net earnings reported on self-employed lines in relation to T4 self-employment on which EI premiums through employment were deducted	31217
53590	Shareholder's loan repayment	23200
53650	Business income allocated to member of a communal organization	13500, 13700, 13900, 14100, 14300
53670	QC logging income	53210
53680	Spouse's or common-law partner's total split income
53755	CWB income from other returns	10105
54493	Shareholder earnings	31217
54494	Tax-exempt self-employment income earned by a status Indian	31217
54610	Taxable income from the post-bankruptcy period
54780	EI insurable earnings	31200, 31217, 45000, 50280
54790	EI and other benefits repaid	23200
54920	Farm/fish loss	25200
54950	Total section 31 farm loss	14100
54960	Restricted farm loss	25200
55070	RRSP earned income calculation	13500, 13700, 13900, 14100, 14300
55080	Home Buyers' Plan (HBP) participant repayment amount	12900
55110	Lifelong Learning Plan (LLP) participant repayment amount	12900
55270	Spousal indicator	60900 (MB479)
55300	Earned income adjustment amount	21400
55320	Net self-employment income (loss) adjustment amount	13500, 13700, 13900, 14100, 14300, 45200, 45300
55360	RDSP repayment by taxpayer	23200, 23500, 45200, 45300
55370	RDSP income of spouse or common-law partner	23500, 45200, 45300
55380	RDSP repayment by spouse or common-law partner	23500, 45200, 45300
55400	Number of months of retirement	11400
55530	Total CPP overpayment allowed on line 44800 on previously assessed returns
55550	Number of months of disability	11400
55630	CPP deductions allowed on previously assessed returns
55640	Total CPP withheld per T4 on all previously assessed returns
55660	CPP/QPP retirement benefits	11400
56121	Total tax credit calculated for farmers with one or more permanent establishments in ON plus farming business in more than one province or territory, with an allocation of eligible farming expenses to ON	47556, 67062, 67063, 67067, 67071
56122	Total tax credit calculated for farmers with one or more permanent establishments in MB plus farming business in more than one province or territory, with an allocation of eligible farming expenses to MB	47556, 67062, 67064, 67068, 67072
56123	Total tax credit calculated for farmers with one or more permanent establishments in SK plus farming business in more than one province or territory, with an allocation of eligible farming expenses to SK	47556, 67062, 67065, 67069, 67073
56124	Total tax credit calculated for farmers with one or more permanent establishments in AB plus farming business in more than one province or territory, with an allocation of eligible farming expenses to AB	47556, 67062, 67066, 67070, 67074
56125	Total tax credit calculated for farmers with one or more permanent establishments in NS plus farming business in more than one province or territory, with an allocation of eligible farming expenses to NS	47556, 67062, 67091, 67095, 67099
56126	Total tax credit calculated for farmers with one or more permanent establishments in PE plus farming business in more than one province or territory, with an allocation of eligible farming expenses to PE	47556, 67062, 67092, 67096, 67100
56127	Total tax credit calculated for farmers with one or more permanent establishments in NL plus farming business in more than one province or territory, with an allocation of eligible farming expenses to NL	47556, 67062, 67093, 67097, 67101
56128	Total tax credit calculated for farmers with one or more permanent establishments in NB plus farming business in more than one province or territory, with an allocation of eligible farming expenses to NB	47556, 67062, 67094, 67098, 67102
56130	Farm expenses on other elective returns	47556, 67061
57460	QPP deductions allowed on all previously assessed returns
57470	QPP withheld per T4 on all previously assessed returns
57480	QPP overpayment allowed on line 44800 on all previous assessed returns
57730	Marital status indicator – Separation less than 90 days	11600, 21000, 32600, 58640
68140	Capital gains from T3 slips	17600
68200	Special tax for Quebec LSVCC	T5006

Appendix G – All valid line numbers

Appendix G1 – Line numbers used on EFILE records

The following is a list of valid line numbers that may be transmitted on EFILE records. As identified below, the entry on a line must be numerical (N), in dollars only ($), or in dollars and cents ($/¢).

Appendix G2 – Line numbers used on SFD records

The following is a list of valid line numbers that can be used on SFD records. All SFD lines are dollar amounts only.

Line numbers used on SFD records

Line	Description	Forms
575	Point of sale adjustments	T1163, T1273
1770	Tradesperson’s tools expenses	T777
1771	Labour mobility deduction	T777
1776	Musical instrument expenses	T777
1777	Capital cost allowance for musical instruments	T777
8000	Adjusted gross sales	T2125, SFD type 02 only
8000	Adjusted professional fees	T2125, SFD type 03 only
8141	Total of your gross rents in the year you receive them	T776
8230	Other income	T776, T2125
8290	Reserves deducted last year	T2125
8299	Total gross rental income	T776
8299	Gross income	T2121
8299	Gross business income	T2125, SFD type 02 only
8299	Gross professional income	T2125, SFD type 03 only
8300	Opening inventory (include raw materials, goods in process and finished goods	T2125, SFD type 02 only
8320	Purchases during the year (net of returns, allowances and discounts	T2125, SFD type 02 only
8340	Direct wage costs	T2125, SFD type 02 only
8360	Subcontracts	T2125, SFD type 02 only
8450	Other costs	T2125, SFD type 02 only
8500	Closing inventory (include raw materials, goods in process and finished goods	T2125, SFD type 02 only
8518	Cost of goods sold	T2125, SFD type 02 only
8519	Gross profit (or loss)	T2125, SFD type 02 only
8520	Advertising and promotion	T777
8521	Advertising	T776, T2125
8523	Food, beverages, and entertainment expenses	T777
8523	Meals and entertainment	T2121, T2125
8523	Part 2A – Total amount you paid for meals	TL2
8528	Part 2B – Total amount you paid for meals	TL2
8590	Bad debts	T2125
8690	Insurance	T776, T2121, T2125
8710	Interest and bank charges	T776, T2121, T2125
8760	Business taxes, licences and memberships	T2121, T2125
8810	Office expenses	T776, T2121, T2125
8810	Office supplies (postage, stationery, ink cartridge, etc.)	T777
8811	Office stationery and supplies	T2125
8860	Professional fees (includes legal and accounting fees)	T776, T2121, T2125
8862	Accounting and legal fees	T777
8871	Management and administration fees	T776, T2125
8910	Parking	T777
8910	Rent	T2125
8960	Repairs and maintenance	T776, T2125
8963	Repairs and maintenance: Fishing boat – Your cost	T2121
9060	Salaries, wages and benefits (including employer’s contributions)	T776, T2121, T2125
9062	Crew shares	T2121
9131	Apprentice mechanic tools expenses	T777
9136	Fishing gear	T2121
9137	Nets and traps	T2121
9138	Salt, bait and ice	T2121
9180	Property taxes	T776, T2125
9200	Travel	T776
9200	Lodging	T777
9200	Travel expenses	T2125
9200	Allowable amount you paid for lodging	TL2
9220	Utilities	T776, T2125
9224	Fuel costs (except for motor vehicles)	T2121, T2125
9270	Other expenses	T776
9270	Other expenses (employment use of a cell phone, long distance calls for employment purposes, etc.)	T777
9270	Other expenses (specify)	T2121, T2125
9275	Delivery, freight and express	T2121, T2125
9281	Motor vehicle expenses (not including CCA)	T776, T2121, T2125
9281	Allowable motor vehicle expenses	T777
9368	Total expenses	T777, T2121, T2125
9369	Net income (loss) before adjustments	T776, T2121, T2125
9370	Grains and oilseeds	T2042
9371	Wheat	T2042
9372	Oats	T2042
9373	Barley	T2042
9374	Mixed grains	T2042
9375	Corn	T2042
9376	Canola	T2042
9377	Flaxseed	T2042
9378	Soybeans	T2042
9420	Other crops	T2042
9421	Fruits	T2042
9422	Potatoes	T2042
9423	Vegetables (not including potatoes)	T2042
9424	Tobacco	T2042
9425	Greenhouse and nursery products	T2042
9426	Forage crops or seeds	T2042
9470	Livestock sold – Livestock and animal products revenue	T2042
9471	Livestock sold – Cattle	T2042
9472	Livestock sold – Swine	T2042
9473	Livestock sold – Poultry	T2042
9474	Livestock sold – Sheep and lambs	T2042
9476	Milk and cream (not including dairy subsidies)	T2042
9477	Eggs for consumption	T2042
9520	Other commodities	T2042
9540	Other program payments	T1163, T1273
9540	Program payments – Other program payments	T2042
9541	Program payments – Dairy subsidies	T2042
9542	Program payments – Crop insurance	T2042
9544	Business risk management (BRM) and disaster assistance program payments	T1163, T1273
9570	Rebates	T2042
9574	Resales, rebates, GST/HST for allowable expenses	T1163, T1273
9575	Resales, rebates, GST/HST for non-allowable expenses, and recapture of capital cost allowance (CCA)	T1163, T1273
9600	Other (specify)	T1163, T1273
9600	Other income (specify)	T2042, T2121
9601	Agricultural contract work	T1163, T1273
9601	Custom or contract work (includes machine rentals)	T2042
9604	Insurance proceeds	T2042
9605	Patronage dividends	T1163, T1273, T2042
9607	Interest	T1163, T1273
9610	Gravel	T1163, T1273
9611	Trucking (farm-related only)	T1163, T1273
9612	Resales of commodities purchased	T1163, T1273
9613	Leases (gas, oil well, surface, etc.)	T1163, T1273
9614	Machine rentals	T1163, T1273
9659	Gross income	T2042
9661	Containers and twine	T1163, T1273, T2042
9662	Fertilizers and soil supplements	T1163, T1273
9662	Fertilizers and lime	T2042
9663	Pesticides and chemical treatments	T1163, T1273
9663	Pesticides (herbicides, insecticides, fungicides)	T2042
9664	Seeds and plants	T2042
9665	Insurance premiums (crop or production)	T1163, T1273
9711	Feed, supplements, straw and bedding	T2042
9712	Livestock purchases	T2042
9713	Veterinary fees, medicine, and breeding fees	T1163, T1273
9713	Veterinary fees, medicine and breeding fees	T2042
9714	Minerals and salts	T1163, T1273
9760	Machinery (repairs, licences, insurance)	T1163, T1273
9760	Machinery expenses – Repairs, licences and insurance	T2042
9764	Machinery (gasoline, diesel fuel, oil)	T1163, T1273
9764	Machinery expenses – Gasoline, diesel fuel and oil	T2042
9765	Machinery lease/rental	T1163, T1273
9790	Total other expenses	T2042
9792	Advertising and promotion costs	T1163, T1273
9795	Building and fence repairs	T1163, T1273
9795	Building repairs and maintenance (includes fence repairs)	T2042
9796	Land clearing and draining	T1163, T1273
9796	Clearing, levelling and draining land	T2042
9797	Crop insurance, Revenue Protection Program and stabilization premiums	T2042
9798	Agricultural contract work	T1163, T1273
9798	Custom or contract work (includes machine rentals)	T2042
9799	Electricity	T1163, T1273, T2042
9801	Freight and shipping	T1163, T1273
9802	Heating fuel	T1163, T1273
9802	Heating fuel and curing fuel	T2042
9803	Insurance program overpayment recapture	T2042
9804	Other insurance premiums	T1163, T1273
9804	Insurance	T2042
9805	Interest (real estate, mortgage, other)	T1163, T1273
9805	Interest and bank charges	T2042
9807	Memberships/subscription fees	T1163, T1273
9808	Office expenses	T1163, T1273, T2042
9809	Legal and accounting fees	T1163, T1273
9809	Professional fees (includes legal and accounting fees)	T2042
9810	Property taxes	T1163, T1273, T2042
9811	Rent (land, buildings, pastures)	T1163, T1273
9811	Rent (land, buildings and pastures)	T2042
9814	Salaries, wages and benefits (including employer’s contributions)	T2042
9815	Arm’s length salaries	T1163, T1273
9816	Non-arm’s length salaries	T1163, T1273
9819	Motor vehicle expenses	T1163, T1273
9819	Motor vehicle expenses (not including CCA)	T2042
9820	Small tools	T1163, T1273, T2042
9821	Soil testing	T1163, T1273
9822	Storage/drying	T1163, T1273
9823	Licences/permits	T1163, T1273
9824	Telephone	T1163, T1273
9825	Quota rental (tobacco, dairy)	T1163, T1273
9826	Gravel	T1163, T1273
9827	Purchases of commodities resold	T1163, T1273
9829	Motor vehicle interest and leasing costs	T1163, T1273
9836	Commissions and levies	T1163, T1273
9896	Other (specify)	T1163, T1273
9898	Total farm expenses	T2042
9899	Net income (loss) before inventory adjustments	T2042
9923	Total cost of all land additions	T776, T1175, T2042, T2121, T2125
9924	Total proceeds from all land dispositions	T776, T1175, T2042, T2121, T2125
9925	Total equipment additions	T776, T1175, T2042, T2121, T2125
9926	Total equipment dispositions	T776, T1175, T2042, T2121, T2125
9927	Total building additions	T776, T1175, T2042, T2121, T2125
9928	Total building dispositions	T776, T1175, T2042, T2121, T2125
9929	Total cost of all quota additions	T1175, T2042
9930	Total proceeds from all quota dispositions	T1175, T2042
9931	Total business liabilities	T1175, T2042, T2121, T2125
9932	Drawings in the current year	T1175, T2042, T2121, T2125
9933	Capital contributions in the current year	T1175, T2042, T2121, T2125
9934	Adjustment to business-use-of-home expenses	T1163, T1273
9936	Total capital cost allowance	T776
9936	Capital cost allowance	T1163, T1273, T2042, T2121, T2125
9937	Mandatory inventory adjustments – prior year	T1163, T1273
9937	Mandatory inventory adjustment included in the previous year	T2042
9938	Optional inventory adjustments – prior year	T1163, T1273
9938	Optional inventory adjustment included in the previous year	T2042
9940	Other deductions	T1163, T1273
9941	Optional inventory adjustment – current year	T1163, T1273
9941	Optional inventory adjustment included in the current year	T2042
9942	Mandatory inventory adjustment – current year	T1163, T1273
9942	Mandatory inventory adjustment included in the current year	T2042
9943	Partners – other expenses of the partner	T776
9943	Other amounts deductible from your share of net partnership income (loss)	T2042, T2121, T2125
9944	Net income (loss) after adjustments	T1163, T1273
9945	Co-owners – other deductible expenses	T776
9945	Work-space-in-the-home expenses	T777
9945	Business-use-of-home expenses	T2042, T2121, T2125
9946	Your net income (loss)	T776, T2042, T2121, T2125
9946	Net farming income (loss)	T1163, T1273
9947	Recaptured capital cost allowance	T776
9948	Terminal loss	T776
9949	Total for personal portion	T776
9950	Total A: Total of commodity sales and program payments	T1163, T1273
9951	Return of fuel charge proceeds to farmers tax credit allocated to partnerships	T1163, T1273, T2042
9953	Private insurance premiums for allowable commodities	T1163, T1273
9954	Proceeds of disposition	T1255, T2091
9955	Year of acquisition	T1255, T2091
9956	Total number of years designated	T1255, T2091
9959	Gross farming income	T1163, T1273
9960	Total C: Total of commodity purchases and repayment of program benefits	T1163, T1273
9968	Total expenses	T1163, T1273
9969	Net income (loss) before adjustments	T1163, T1273
9973	Artists’ employment expenses	T777
9974	Partners – GST/HST rebate for partners received in the year	T776
9974	GST/HST rebate for partners received in the year	T1163, T1273, T2042, T2121, T2125

Appendix H – Working beneficiaries with pensionable employment earnings

A taxpayer is considered a CPP working beneficiary and is required to make CPP contributions in the tax year if they met all of the following conditions:

• They were 60 to 70 years of age
• They received a CPP or QPP retirement pension
• They had employment and/or self-employment income

However, if the taxpayer was at least 65 years of age but under 70 years of age, they can elect to stop paying CPP contributions.

When there is an election in the tax year, the taxpayer will stop making CPP contributions starting with the election effective month.

Example 1:

• The election effective date on record is April 2021. The taxpayer files a 2021 return with CPP contributions.
• The system will calculate CPP contribution for January to March. The proration factor of 3/12 will be used.
• For elections made in December of the tax year, the effective date will be January of the following year. The taxpayer may also revoke in this subsequent year, meaning the system will calculate CPP contributions using both the election and revocation effective dates.

Example 2:

• The election effective date on record is January 2021, meaning an election was made in December 2020. Therefore, a revocation can be made in 2021. The revocation effective date on record is June 2021.
• The system will calculate CPP contributions for June to December. The proration factor of 7/12 will be used.

Example 3:

• The 68 year old taxpayer works in and out of Quebec. He is in receipt of CPP retirement benefits and has a CPT30 election on record with an effective date of April 2021.
• The taxpayer files a 2021 return with CPP and QPP contributions indicated on Form RC381.
• The system will calculate QPP contributions based on the QPP pensionable earnings on line 50329, for the entire year.
• The system will calculate CPP contributions for January to March. The proration factor of 3/12 will be used.
• When there is a relevant revocation in the tax year, the taxpayer will start paying CPP contributions in the revocation effective month.

Example 4:

• There is a relevant revocation effective date on record of April 2021. The taxpayer files a 2021 return with CPP contributions.
• The system will calculate CPP contributions for April to December. The proration factor of 9/12 will be used.

Appendix I – Spouse's or common-law partner's capital gain from mortgage foreclosures and conditional sales repossessions

Supporting line 52300 captures the spouse's or common-law partner's capital gain from mortgage foreclosures and conditional sales repossessions. This type of gain is excluded from the calculation of net income in order to determine the refundable medical expense supplement, the Canada workers benefit, and the low-income tax reduction for the provinces of Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, and the British Columbia sales tax credit.

The amount on line 52300 is calculated as follows:

• If there is no amount on line 12700, line 52300 is equal to zero.
• If there is an amount on line 12700, the following rules apply:
  1. If line 12400 and line 15500 are both less than or equal to zero, line 52300 is equal to zero.
     See Example 1.
  2. If line 12400 is less than or equal to zero but line 15500 is greater than zero, compare the taxable portion of the amount on line 15500 with the amount on line 12700:
     1. If the taxable portion is less than line 12700, line 52300 is equal to the taxable portion on line 15500.
        See Example 2a.
     2. If the taxable portion is greater than or equal to line 12700, line 52300 is equal to the amount on line 12700.
        See Example 2b.
  3. If line 12400 is greater than zero but line 15500 is less than or equal to zero, compare the taxable portion of the amount on line 12400 with the amount on line 12700:
     1. If the taxable portion is less than line 12700, line 52300 is equal to the taxable portion of line 12400.
        See Example 3a.
     2. If the taxable portion is greater than or equal to line 12700, line 52300 is equal to the amount on line 12700.
        See Example 3b.
  4. If line 12400 and line 15500 are both greater than zero, compare the taxable portion of the total of the amounts reported on these lines with the amount on line 12700:
     1. If the taxable portion is less than line 12700, line 52300 is equal to the taxable portion of the amounts on lines 12400 and 15500.
        See Example 4a.
     2. If the taxable portion is greater than or equal to line 12700, line 52300 is equal to the amount on line 12700.
        See Example 4b.

Example 1 – Line 12400 and line 15500 are both less than or equal to zero

Lines on the spouse's or common-law partner's Schedule 3:

• Line 12400 = loss of $2,000
• Line 15500 = $0
• Line 12700 = $0

In this situation, no entry is required on line 52300 on the taxpayer’s return.

Example 2a – line 12400 is less than or equal to 0 but line 15500 is greater than zero

Lines on the spouse’s or common law partner’s Schedule 3:

• Line 12400 = loss of $1,000
• Line 15500 = gain of $3,000
• Line 13200 = gain of $5,000
• Line 12700 = $3,500

The taxable portion on line 15500 is $1,500 (50% of $3,000). The lesser of the taxable capital gain on line 15500 and the amount on line 12700 is $1,500.

In this situation, line 52300 = $1,500.

Example 2b – line 12400 is less than or equal to 0 but line 15500 is greater than zero

Lines on the spouse’s or common-law partner’s Schedule 3:

• Line 12400 = loss of $1,000
• Line 15500 = gain of $5,000
• Line 13200 = loss of $2,000
• Line 12700 = $1,000

The taxable portion on line 15500 is $2,500 (50% of $5,000). The lesser of the taxable capital gain on line 15500 and the amount on line 12700 is $1,000.

In this situation, line 52300 = $1,000.

Example 3a – line 12400 is greater than 0 but line 15500 is less than or equal to zero

Lines on the spouse’s or common-law partner’s Schedule 3:

• Line 12400 = gain of $4,000
• Line 15500 = loss of $3,000
• Line 10700 = gain of $5,000
• Line 12700 = $3,000

The taxable portion on line 12400 is $2,000 (50% of $4,000). The lesser of the taxable capital gain on line 12400 and the amount on line 12700 is $2,000.

In this situation, line 52300 = $2,000.

Example 3b – line 12400 is greater than 0 but line 15500 is less than or equal to zero

Lines on the spouse’s or common-law partner’s Schedule 3:

• Line 12400 = gain of $30,000
• Line 15500 = loss of $10,000
• Line 13200 = gain of $5,000
• Line 12700 = $12,500

The taxable portion on line 12400 and line 15500 is $1,600 (50% of $3,200). The lesser of the taxable capital gain on line 12400 plus line 15500 and the amount on line 12700 is $1,600.

In this situation, line 52300 = $12,500.

Example 4a – line 12400 and line 15500 are both greater than zero

Lines on the spouse’s or common-law partner’s Schedule 3:

• Line 12400 = gain of $3,000
• Line 15500 = gain of $200
• Line 10700 = gain of $5,000
• Line 12700 = $4,100

The taxable portion on line 12400 and line 15500 is $1,600 (50% of $3,200). The lesser of the taxable capital gain on line 12400 plus line 15500 and the amount on line 12700 is $1,600.

In this situation, line 52300 = $1,600.

Example 4b – line 12400 and line 15500 are both greater than zero

Lines on the spouse’s or common-law partner’s Schedule 3:

• Line 12400 = gain of $35,000
• Line 15500 = gain of $15,000
• Line 13200 = loss of $10,000
• Line 12700 = $20,000

The taxable portion on line 12400 and line 15500 is $25,000 (50% of $50,000). The lesser of the taxable capital gain on line 12400 plus line 15500 and the amount on line 12700 is $20,000.

In this situation, line 52300 = $20,000.

Appendix J – Net self-employment income (loss) adjustment amount

Supporting line 55320 is an adjustment line to be used when an individual has more than one business reported on one of the self-employment lines (13500, 13700, 13900, 14100, or 14300) and reports income from one, and a loss from another.

An individual’s “working income” or “earned income” is used in the calculation of the Canada workers benefit (CWB) and in part of the determination for eligibility requirement (i.e., minimum income threshold) for the refundable medical expense supplement (RMES). It should only include the net income (not loss) from each business. line 55320 is to be updated to equal the amount required to negate the loss. Otherwise, the individual’s claim for the CWB on line 45300 and the income threshold used to determine eligibility for their RMES on line 45200 will be based on the net amount reported on the self-employment lines.

For married or common-law couples, if Spouse A is claiming the CWB for both partners, as their working income is higher, line 55320 should still be updated on Spouse B’s return if it is applicable to their return, in case a spousal match is performed on the returns.

Example 1:

Sally operates Business A with a net income of $5,000 and Business B with a net loss of $3,000. This is Sally’s only source of income on her return.

• Line 13500 will be a net income of $2,000 ($5,000 minus $3,000). Enter this amount on line 9 of Schedule 6 under Part B – Adjusted family net income.
• The total self-employed income excluding losses is $5,000 (from Business A). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $5,000 (line 5) minus $2,000 (line 13500) = $3,000. Therefore, line 55320 = $3,000.

Example 2:

Doug operates Business A with a net income of $5,000 and Business B with a net loss of $8,000.

• Line 13500 will be a net loss of $3,000 ($5,000 minus $8,000).
• The total self-employed income excluding losses is $5,000 (from Business A). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $5,000 (line 5) minus $0 (the loss on line 13500 is not used in the calculation) = $5,000. Therefore, line 55320 = $5,000.

Example 3:

John operates Farm A with a net income of $5,000, Farm B with a net income of $2,000, and Farm C with a net loss of $10,000.

• Line 14100 will be a loss of $3,000 ($5,000 plus $2,000 minus $10,000).
• The total self-employed income excluding losses is $7,000 (from Farms A and B). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $7,000 (line 5) minus $0 (the loss on line 14100 is not used in the calculation) = $7,000. Therefore, line 55320 = $7,000.

Example 4:

Jennifer operates Business A with a net income of $5,000 and Business B with a net loss of $5,000.

• Line 13500 is considered to be zero.
• The total self-employed income excluding losses is $5,000 (from Business A). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $5,000 (line 5) minus $0 (line 13500) = $5,000. Therefore, line 55320 = $5,000.

Example 5:

Peter operates Farm A with a net income of $5,000.

• Line 14100 will be a net income of $5,000.
• The total self-employed income excluding losses is $5,000 (from Farm A). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $5,000 (line 5) minus $5,000 (line 14100) = $0. Therefore, line 55320 = $0.

Example 6:

Serge operates Farm A with a net income of $5,000. Serge also operates Business 1 with a net income of $2,000, and Business 2 with a net loss of $10,000.

• Line 14100 will be a net income of $5,000.
• Line 13500 will be a loss of $8,000 ($2,000 minus $10,000).
• The total self-employed income excluding losses is $7,000 (from Farm A and Business 1). Enter this amount on line 5 of Schedule 6 under Part A – Working income.
• $7,000 (line 5) minus $5,000 (line 14100) minus $0 = $2,000. Therefore, line 55320 = $2,000.
• Note that the loss on line 13500 is not used.

Appendix K – Non-refundable tax credits for immigrants and emigrants

In the year of immigration or emigration, the taxpayer may be limited in the amount allowed for the following non-refundable tax credits.

Non-refundable tax credits for newcomers

Line	Federal, provincial or territorial	Description
30000	Federal	Basic personal amount
30100	Federal	Age amount
30300	Federal	Spouse or common-law partner amount
30400	Federal	Amount for an eligible dependant
30425	Federal	Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older
30450	Federal	Canada caregiver amount for other infirm dependants age 18 or older
30500	Federal	Canada caregiver amount for infirm children under 18 years of age
31800	Federal	Disability amount transferred from a dependant
32400	Federal	Tuition amount transferred from a child or grandchild
32600	Federal	Amounts transferred from your spouse or common-law partner
58040	All provinces and territories	Basic personal amount
58080	All provinces and territories	Age amount
58120	All provinces and territories	Spouse or common-law partner amount
58160	All provinces and territories	Amount for an eligible dependant
58170	YT only	Caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older
58175	BC only	British Columbia caregiver amount
58180	YT only	Caregiver amount for infirm dependants age 18 or older
58185	ON only	Ontario caregiver amount
58189	YT only	Caregiver amount for infirm children under 18 years of age
58200	All provinces and territories, except ON, BC and YT	Amount for infirm dependants age 18 or older
58210	SK only	Amount for dependent children age 18 or younger
58220	SK only	Senior supplementary amount
58230	NU only	Amount for young children
58400	All provinces and territories, except ON, BC and YT	Caregiver amount
58480	All provinces and territories	Disability amount transferred from a dependant
58600	All provinces and territories, except ON, SK and AB	Tuition, (education) (and textbook) amounts transferred from a child or grandchild
58640	All provinces and territories	Amounts transferred from your spouse or common-law partner

An immigrant or emigrant must meet the 90% rule for the period of non-residency in order to be allowed the non-refundable tax credits in full. A taxpayer will meet the 90% rule if the Canadian-source income reported for the part of the year while not a resident of Canada is 90% or more of the net world income for that part of the year, or if there was no income from sources inside and outside Canada for that part of the year. The 90% rule is calculated as follows:

(Canadian-source non-resident income x 100%) ÷ (Net world non-resident income)

If a taxpayer does not meet the 90% rule, the above non-refundable tax credits must be prorated based on the immigration or emigration date. Immigrant information can be found in the pamphlet T4055, Newcomers to Canada.