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ARCHIVED - Federal tax and credits (Schedule 1)

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Federal tax and credits (Schedule 1)

If you are filing a paper return, attach a completed Schedule 1.

Minimum tax

Minimum tax limits the tax advantage you can receive in a year from certain incentives. You have to pay minimum tax if it is more than the federal tax you calculate in the usual manner. When calculating your taxable income for this tax, which does not apply to a person who died in 2012, you are allowed a basic exempt amount of $40,000.

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

Use Form T691, Alternative Minimum Tax, to determine whether you have to pay minimum tax. You also have to calculate additional provincial or territorial tax for minimum tax purposes by completing Form 428.

You may have to pay minimum tax if:

A.  You reported a taxable capital gain on line 127 of your return.

B.  You claimed any of the following on your return:

C.  You claimed any of the following tax credits on Schedule 1 :

Example
Paul claimed a $50,000 deduction in 2012 for carrying charges. Because this deduction is more than $40,000, Paul may have to pay minimum tax. To find out, he should complete Form T691, Alternative Minimum Tax.

Tax Tip
You may be able to claim a credit against your taxes for 2012 if you paid minimum tax on any of your returns for 2005 to 2011 (see line 427).


Federal non-refundable tax credits (lines 300 to 378)

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

Newcomers to Canada and emigrants

If you became or ceased to be a resident of Canada for income tax purposes during 2012, enter the date of your move in the "Information about your residence" area on page 1 of your return. You may have to reduce your claim for the amounts on lines 300, 301, 303, 305, 367, 306, 315, 316, 318, 324, and 326. For more information, see Pamphlet T4055, Newcomers to Canada, or Guide T4056, Emigrants and Income Tax, whichever applies.

Amounts for non-resident dependants

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

If the dependants already have enough income or assistance for a reasonable standard of living in the country in which they live, we do not consider them to depend on you for support. Also, we do not consider gifts you send them to be support.

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

Family caregiver amount (FCA)

If you have a dependant with an impairment in physical or mental functions, you may be eligible to claim an additional amount of $2,000 for one or more of the following amounts:

Note
The maximum amount for infirm dependants age 18 or older (line 306) includes the additional amount of $2,000 for the FCA.

The dependant with the impairment must be:

You must have a signed statement from a medical doctor showing when the impairment began and what the duration of the impairment is expected to be. For children under 18 years of age, the statement should also show that the child, because of an impairment in physical or mental functions, is dependent on others for an indefinite duration. This dependence means they need much more assistance for their personal needs and care compared to children of the same age.

You can claim the FCA for more than one eligible dependant.

Line 300 - Basic personal amount

Claim $10,822.

Line 301 - Age amount

You can claim this amount if you were 65 years of age or older on December 31, 2012, and your net income (line 236 of your return) is less than $78,684.

If your net income was:

Enter your date of birth in the "Information about you" area on page 1 of your return.

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

Line 303 - Spouse or common-law partner amount

You can claim this amount if, at any time in the year, you supported your spouse or common-law partner (see Marital status) and his or her net income (line 236 of his or her return, or the amount it would be if he or she filed a return) was less than $10,822. Complete the appropriate part of Schedule 5 to calculate your claim and attach a copy to your return.

You may also be eligible to claim the family caregiver amount .

Enter the information about your spouse or common law partner in the “Identification” area on page 1 of your return if you were married or living common-law on December 31, 2012. In certain situations, your spouse’s or common law partner’s net income must be stated even if your marital status has changed. See “Net income of spouse or common law partner” in the next section. Both of you cannot claim this amount for each other for the same year.

If you were required to make support payments to your current or former spouse or common-law partner, and you were separated for only part of 2012 because of a breakdown in your relationship, you have a choice. You can claim the deductible support amounts paid in the year to your spouse or common-law partner on line 220 or an amount on line 303 for your spouse or common-law partner, whichever is better for you. If you reconciled with your spouse or common-law partner before the end of 2012, you can claim an amount on line 303 and any allowable amounts on line 326.

Net income of spouse or common-law partner

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

If you were living with your spouse or common-law partner on December 31, 2012, use his or her net income for the whole year. This applies even if you got married or back together with your spouse in 2012 or you became a common-law partner or started to live with your common-law partner again (see the definition, Marital status).

If you separated in 2012 because of a breakdown in your relationship and were not back together on December 31, 2012, reduce your claim only by your spouse's or common-law partner's net income before the separation. In all cases, enter, in the "Information about your spouse or common-law partner" area on page 1 of your return, the amount you use to calculate your claim, even if it is zero.

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

Line 305 - Amount for an eligible dependant

You may be able to claim this amount if, at any time in the year, you met all the following conditions at once:

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

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

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

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

Note
If you and another person were required to make support payments for the child for 2012 and, as a result, no one would be entitled to claim the amount for an eligible dependant for the child, you can still claim this amount as long as you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, neither of you can make the claim. For more information, see Pamphlet P102, Support Payments.

How to claim

You can claim this amount if your dependant's net income (line 236 of his or her return, or the amount it would be if he or she filed a return) was less than $10,822. Complete the appropriate part of Schedule 5 to calculate your claim and give certain details about your dependant. Attach a copy of this schedule to your paper return.

You may also be eligible to claim the family caregiver amount.

Notes
If you were a single parent on December 31, 2012, and you choose to include all universal child care benefit (UCCB) amounts you received in 2012 in the income of your dependant, include this amount in the calculation of his or her net income.

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

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

Line 367 - Amount for children born in 1995 or later

Either you or your spouse or common-law partner can claim an amount for each of your or your spouse’s or common-law partner’s children who are under 18 years of age at the end of the year if the child resided with both of you throughout the year.

You may be eligible to claim the family caregiver amount for each child with an impairment in physical or mental functions

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

Notes
If you are making this claim for more than one child, either you or your spouse or common-law partner must make the claim for all children under 18 years of age at the end of the year and who resided with both of you throughout the year.

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

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

Notes
You can still claim this amount for the child if you were unable to claim the amount for an eligible dependant because:

If you and another person were required to make support payments for the child in 2012 and, as a result, no one would be entitled to claim this amount or the amount for an eligible dependant for the child, you can still claim this amount as long as you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, no one can make the claim for that child.

How to claim

Enter the number of children for whom you are not claiming the family caregiver amount (FCA), in box 366 (above and to the left of line 367 on Schedule 1). For children for whom you are claiming the FCA, enter the number of children in box 352 (beside and to the left of line 367). Enter the result of the calculation on line 367.

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

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount up to a maximum of $6,402, which includes the $2,000 family caregiver amount (see page 33), for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person had an impairment in physical or mental functions and was born in 1994 or earlier.

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

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

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

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

You can claim an amount only if the dependant's net income (line 236 of his or her return, or the amount it would be if he or she filed a return) is less than $12,822.

If you were required to make support payments for a child, you cannot claim an amount on line 306 for that child. However, if you were separated from your spouse or common-law partner for only part of 2012 due to a breakdown in your relationship, you can still claim an amount for that child on line 306 (plus any allowable amounts on lines 305 and 318) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You can claim whichever is better for you.

How to claim

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

Line 308 - CPP or QPP contributions through employment

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

Do not enter more than $2,306.70 if you resided outside Quebec on December 31, 2012. Do not enter more than $2,341.65 if you were a resident of Quebec on December 31, 2012.

If you contributed to the QPP in 2012 but resided outside Quebec on December 31, 2012, treat those contributions as if you made them to the CPP. Attach to your paper return the Relevé 1 slip your employer sent you.

Note
If you contributed to a foreign employer sponsored pension plan or to a social security arrangement (other than a United States Arrangement), see Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2012 - Non-United States Plans or Arrangements. You can get this form by going to Forms and publications, or by contacting us.

If you contributed more than $2,306.70, enter the excess amount on line 448 of your return. We will refund this overpayment to you or use it to reduce your balance owing. However, if you were a resident of Quebec on December 31, 2012, and contributed more than $2,341.65, claim the overpayment on your provincial income tax return for Quebec.

You may have an overpayment, even if you contributed $2, 306.70 or less to the CPP if you resided outside Quebec on December 31, 2012, or $2,341.65 or less to the QPP if you were a resident of Quebec on December 31, 2012.

For example:

You can calculate your overpayment using Form T2204, Employee Overpayment of 2012 Canada Pension Plan Contributions and 2012 Employment Insurance Premiums.

CPP working beneficiaries

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

However, if you are at least 65 years of age but under 70, you can elect to stop contributing to the CPP:

Request for refund of CPP contributions

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

Making additional CPP contributions

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

Generally, if the total of your CPP and QPP contributions through employment, as shown in boxes 16 and 17 of your T4 slips, is less than $2, 306.70, you can contribute 9.9% on any part of the income on which you have not already made contributions. The maximum income for 2012 for which you can contribute to the CPP is $ 50,100. Making additional contributions may increase the pension you receive later.

To make additional CPP contributions for 2012, complete Schedule 8 and Form CPT20, Election to Pay Canada Pension Plan Contributions to calculate the amount of the additional contributions and claim the appropriate amounts on lines 222 and 310. Attach a copy of Schedule 8 and Form CPT20 to your paper return, or send Form CPT20 to us separately on or before June 15, 2014. Form CPT20 lists the eligible employment income on which you can make additional CPP contributions.

Tax-exempt employment income earned by a registered Indian - If you are an Indian, registered, or entitled to be registered, under the Indian Act, with tax-exempt employment income, and there is no amount shown in box 16 or 17 of your T4 slips, you may also be able to contribute to the CPP on this income.

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

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

Line 312 - Employment insurance premiums through employment

If you were not a resident of Quebec on December 31, 2012, claim, in dollars and cents, the total of the amounts shown in box 18 of all your T4 slips. If you contributed to a provincial parental insurance plan (PPIP) in 2012, also include the total of the amounts shown in box 55 of all your T4 slips on this line. Do not enter more than $839.97. Attach to your paper return the Relevé 1 slip your employer sent you.

Notes
If you received EI-exempt employment income as stated in box 28 of your T4 slip and there is an amount in box 55 of your T4 slip, do not enter the amount shown in box 55 of that slip on line 312. In this case, contact Revenu Québec for a refund of your PPIP premiums paid.

However, if you are an employee who controls more than 40% of the voting shares of a corporation and you have entered into an agreement with the Canada Employment Insurance Commission through Service Canada in 2012 to participate in the EI program for access to EI special benefits, enter the amount shown in box 55 on line 312.

If you contributed more than $839.97, enter, in dollars and cents, the excess contribution on line 450 of your return. We will refund this overpayment to you or use it to reduce your balance owing.

Under proposed changes, if you were a resident of Quebec on December 31, 2012, and worked only in Quebec during the year, claim, in dollars and cents, the total of the amount shown in box 18 of all your T4 slips. Do not enter more than  $674.73. If you contributed more than $674.73, enter, in dollars and cents, the excess contribution on line 450 of your return. We will refund this overpayment to you or use it to reduce your balance.

If, during the year, you were a resident of Quebec, worked outside Quebec, and your employment income is $2,000 or more, you must complete Schedule 10 and attach it to your paper return. Claim on this line, in dollars and cents, the lesser of your EI premiums from line 18 , and line 19 of Schedule 10.

Insurable earnings

This is the total of all earnings on which you pay EI premiums. These amounts are shown in box 24 of your T4 slips for 2012 (or box 14 if box 24 is blank).

You may have an overpayment of your premiums even if the total is $ 839.97 or less (if you were not a resident of Quebec) or $ 674.73 or less if you were a resident of Quebec. This can happen when your insurable earnings are less than the total of all amounts shown in box 14 of all your T4 slips. You can calculate your overpayment using Form T2204, Employee Overpayment of 2012 Canada Pension Plan Contributions and 2012 Employment Insurance Premiums. If you were a resident of Quebec and had to complete Schedule 10 because you worked outside Quebec, do not use Form T2204. Calculate the overpayment by completing Part C of Schedule 10.

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

You may also have an overpayment if your insurable earnings are more than $2,000 and less than $2,037 if you resided outside Quebec on December 31, 2012, or if your insurable earnings are more than $2,000 and less than $2,029 if you were a resident of Quebec on December 31, 2012. Calculate your overpayment using Form T2204.

Request for refund of EI contributions

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

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

Self-employed individuals can choose to pay EI premiums to be eligible to receive EI special benefits.

For more information, contact Service Canada.

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

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

Under proposed changes, if you were a resident of Quebec on December 31, 2012, and worked in Quebec during the year, claim, in dollars and cents, the total of the amount shown in box 55 of your T4 slips. The maximum you can claim is $368.94. Any overpayment is claimed on your provincial income tax return for Quebec.

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

Line 376 - PPIP premiums payable on employment income

Under proposed changes, if you were a resident of Quebec on December 31, 2012, enter in dollars and cents, the amount from line 16 of Schedule 10 if the following two conditions apply:

The maximum amount you can claim is $368.94.

Line 378 - PPIP premiums payable on self-employment income

Under proposed changes, if you were a resident of Quebec on December 31, 2012, claim, in dollars and cents, the amount from line 10 of Schedule 10.

The maximum amount you can claim is $368.94.

Line 362 - Volunteer firefighters’ amount

You can claim an amount of $3,000 if you meet the following conditions:

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

Eligible services include:

Note
As a volunteer firefighter, you may be eligible for an income exemption of up to $1,000 if you received a payment from a government, municipality, or other public authority for carrying out volunteer firefighter duties. If you choose to claim this exemption, you will not be eligible for the volunteer firefighters’ amount. The income exemption related to volunteer firefighter duties is shown in box 87 of your T4 slips.

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date. We may request certification from a fire chief or delegated official within the fire department to verify the number of hours of eligible volunteer firefighting services you performed for the department.

Line 363 - Canada employment amount

Claim the lesser of:

Line 364 - Public transit amount

You can claim the cost of monthly public transit passes or passes of longer duration such as an annual pass for travel on public transit for 2012. These passes must permit unlimited travel on local buses, streetcars, subways, commuter trains or buses, and local ferries within Canada.

You can also claim the cost of shorter duration passes if each pass entitles you to unlimited travel for an uninterrupted period of at least 5 days and you purchase enough of these passes so that you are entitled to unlimited travel for at least 20 days in any 28-day period.

You can claim the cost of electronic payment cards when used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days.

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

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

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date.

Line 365 - Children's fitness amount

You can claim to a maximum of $500 per child the fees paid in 2012 relating to the cost of registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program (see the next section) of physical activity. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability amount) at the beginning of the year in which an eligible fitness expense was paid.

You can claim this amount as long as another person has not already claimed the same fees and the total claimed is not more than the maximum amount that would be allowed if only one of you were claiming the amount.

Children with disabilities – If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed as long as a minimum of $100 is paid for registration or membership fees for a prescribed program of physical activity.

 

Notes
You may have paid an amount that would qualify to be claimed as child care expenses (line 214) and the children's fitness amount. If this is the case, you must first claim this amount as child care expenses. Any unused part can be claimed for the children's fitness amount as long as the requirements are met.

If an expense is eligible for the children’s fitness amount, it is not eligible for the children’s arts amount.

If the activity includes two distinct prescribed programs and one program is eligible for the children’s fitness amount and the other program is eligible for the children’s arts amount, you should receive two receipts, or only one receipt that clearly shows the amounts paid to the organization for each distinct program.


Prescribed program

To qualify for this amount, a program must:

Notes
For a child who qualifies for the disability amount, the requirement for significant physical activity is met if the activities result in movement and in an observable use of energy in a recreational context.

Physical activity includes horseback riding, but does not include activities where, as an essential part, a child rides on or in a motorized vehicle.

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

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date.

Line 370 - Children’s arts amount

You can claim to a maximum of $500 per child the fees paid in 2012 relating to the cost of registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program (see the next section) of artistic, cultural, recreational, or developmental activity. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability amount) at the beginning of the year in which an eligible arts expense was paid.

You can claim this amount as long as another person has not already claimed the same fees and the total claimed is not more than the maximum amount that would be allowed if only one of you were claiming the amount.

Children with disabilities – If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed as long as a minimum of $100 is paid for registration or membership fees for a prescribed program described below.

Notes
Eligible expenses do not include amounts that can be claimed as the federal children’s fitness amount or as a deduction by any individual, such as the child care expenses deduction (line 214). As well, eligible expenses do not include amounts that have been claimed as a tax credit by any individual.

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

If the activity includes two distinct prescribed programs and one program is eligible for the children’s arts amount and the other program is eligible for the children’s fitness amount, you should receive two receipts, or only one that clearly shows the amounts paid to the organization for each distinct program.

Prescribed program

To qualify for this amount, a program must meet the first three requirements listed under the section “Prescribed program” at line 365. The program also has to meet at least one of the following criteria:

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

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

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date.


Line 369 - Home buyers' amount

You can claim an amount of $5,000 for the purchase of a qualifying home in 2012, if both of the following apply:

Note
You do not have to be a first-time home buyer if you are eligible for the disability amount or if you acquired the home for the benefit of a related person who is eligible for the disability amount. However, the purchase must be made to allow the person eligible for the disability amount to live in a home that is more accessible or better suited to the needs of that person. For the purposes of the home buyers’ amount, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount, if we do not take into account that costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

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

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

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

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

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

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date.

Line 313 - Adoption expenses

You can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $11,440.

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

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


Eligible adoption expenses

Eligible adoption expenses you can claim are:

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

Supporting documents - If you are filing electronically, or filing a paper return, do not send any documents. Keep them in case we ask to see them at a later date.

Line 314 - Pension income amount

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

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

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

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

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

Line 315 - Caregiver amount

If, at any time in 2012, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,402 for each dependant. Each dependant must have been one of the following individuals:

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

If you were required to make support payments for a child, you cannot claim an amount on line 315 for that child. However, if you were separated from your spouse or common-law partner for only part of 2012 due to a breakdown in your relationship, you can still claim an amount for that child on line 315 (in addition to any allowable amounts on lines 305 and 318) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You can claim whichever is better for you.

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

You may also be eligible to claim the family caregiver amount.

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

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

Line 316 - Disability amount (for self)

To claim this amount, you must have had a severe and prolonged impairment in physical or mental functions during 2012. An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months. You may be able to claim $7,546 if a qualified practitioner certifies, on Form T2201, Disability Tax Credit Certificate, that you meet certain conditions.

To view your disability tax credit information, go to My Account. For more information, see Guide  RC4064, Medical and Disability-Related Information.

Supplement for persons under 18

If you qualify for the disability amount and were under 18 years of age at the end of the year, you can claim up to an additional $4,402. However, this supplement may be reduced if, in 2012, someone claimed child care expenses (on line 214) or attendant care expenses (as a medical expense on line 330 or 331) for you. It will also be reduced if you claimed attendant care expenses on line 215 or 330 for yourself.

How to claim

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

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

Also, you may be able to claim a working income tax benefit disability supplement. See  line 453 .

Line 318 - Disability amount transferred from a dependant

You may be able to claim all or part of your dependant's (other than your spouse or common-law partner) disability amount (line 316) if he or she was resident in Canada at any time in 2012 and was dependent on you for all or some of the basic necessities of life (food, shelter, or clothing).

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

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

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

If you or anyone else paid for an attendant or for care in an establishment, special rules may apply. For more information, see Guide RC4064, Medical and Disability-Related Information. To view your disability tax credit information, go to My Account.

How to claim

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

For more information about different amounts you may be able to claim, see Guide RC4064, Medical and Disability-Related Information.

Line 319 - Interest paid on your student loans

You may have a loan under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws for post-secondary education. If so, only you can claim an amount for the interest you, or a person related to you, paid on that loan in 2012 or the preceding five years.

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

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

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

Supporting documents - If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your documents for the amounts you are claiming for 2012.

Line 323 - Your tuition, education, and textbook amounts

Complete Schedule 11 to calculate your total eligible tuition, education, and textbook amounts for 2012 and to carry forward any unused amounts from previous years that are shown on your notice of assessment or notice of reassessment for 2011. Enter the amount on line 323.

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

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

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

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

Eligible tuition fees

Generally, a course qualifies if it was taken at the post-secondary level or (for individuals 16 years of age or older at the end of the year) it develops or improves skills in an occupation and the educational institution has been certified by Human Resources and Skills Development Canada. In addition, you must have taken the course in 2012.

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

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

Forms

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

Education amount

You can claim this amount for each whole or part month in 2012 in which you were enrolled in a qualifying program. If you were under 16 years of age at the end of the year, you can claim this amount only for courses you took at the post-secondary level.

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

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

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

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

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

You cannot claim more than one education amount for a particular month.

Textbook amount

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

The following are the amounts you can claim:

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

Transferring and carrying forward amounts

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

Complete the “Transfer/Carryforward of unused amount” section of Schedule 11 (particularly line 327) to calculate this transfer, as well as any of the following applicable forms: T2202, T2202A, TL11A, TL11B, or TL11C, to designate who can claim the unused amount and to specify the amount this person can claim. Attach Schedule 11 to your return even if you are transferring your total tuition, education, and textbook amounts.

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

To view your carry-forward amounts, go to My Account.

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

If you are the parent or grandparent of a student or his or her spouse or common-law partner, the student may be able to transfer to you all or part of his or her unused tuition, education, and textbook amounts for 2012. The maximum transferable amount from each student is $5,000 minus the amounts he or she uses, even if there is still an unclaimed part.

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

How to claim

The student has to complete the “Transfer/Carryforward of unused amount” section of Schedule 11 (particularly line 327) and attach the schedule to his or her return. The student must also complete any of the following applicable forms to designate you as the person who can claim the amount:

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

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

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

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

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

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

You may be able to claim all or part of the following amounts for which your spouse or common-law partner qualifies:

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

If you were separated because of a breakdown in your relationship for a period of 90 days or more including December 31, 2012, your spouse or common-law partner cannot transfer any unused amounts to you.

Complete Schedule 2 to calculate your claim. Enter your marital status and the information about your spouse or common-law partner (including his or her net income even if it is zero) in the "Identification" area on page 1 of your return.

If the amount on this line includes a new claim for the disability amount, also attach a completed and certified Form T2201, Disability Tax Credit Certificate. We will review your claim before we assess your return to determine if your spouse or common-law partner qualifies. If he or she qualified for the disability amount for 2011 and still meets the eligibility requirements in 2012, you can claim this amount without sending us a new Form T2201. However, you must send us one if the previous period of approval ended before 2012 or we ask you to do so.

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

Line 330 - Medical expenses for self, spouse or
common-law partner, and your dependent children born in 1995 or later

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

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

You can claim eligible medical expenses paid in any 12-month period ending in 2012 and not claimed for 2011. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than 3% of your net income (line 236) or $2,109, whichever is less.

Notes
On the return for a person who died in 2012, a claim can be made for expenses paid in any 24-month period that includes the date of death, if they were not claimed for any other year.

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

Tax Tip
There is a refundable tax credit for working individuals with low incomes and high medical expenses (see line 452).

Eligible medical expenses

Some eligible medical expenses that you can claim are:

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

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

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

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

For more information about medical expenses, go to Line 330 - Medical expenses for self, spouse or common-law partner, and your dependent children born in 1995 or later, or use Info-Tax, one of our TIPS services. You can also see Guide RC4064, Medical and Disability-Related Information, and Interpretation Bulletin IT-519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.

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


The following example shows you how to calculate your claim.

Example
Richard and his wife Pauline have two children.  They have reviewed their medical bills and decided that the 12-month period ending in 2012 for which they will calculate their claim is July 1, 2011, through June 30, 2012. They incurred the following expenses:

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

The total allowable expenses for 2012 are $4,300, which will be entered on line 330. As Rob is older than 18 years of age, his expenses will be claimed on line 331.

Pauline's net income on line 236 of her return is $32,000. She calculates 3% of that amount as $960. Because the result is less than $2,109, she enters $960 on the line below line 330 of Schedule 1 and subtracts it from $4,300. The difference is $3,340, which is the amount (C) above line 331.

Richard's net income on line 236 of his return is $48,000. He calculates 3% of that amount as $1,440. Because the result is less than $2,109, he enters $1,440 on the line below line 330 and subtracts it from $4,300. The difference is $2,860.

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

Supporting documents - If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach all documents for yourself and documents for the person(s) you are claiming (other than for premiums paid to a health services plan, which you should keep in case we ask to see them at a later date). Receipts must show the name of the company or individual to whom the expense was paid. Receipts for attendant care or therapy paid to an individual should also show the individual’s social insurance number.

You may be claiming expenses that would be allowable only for a patient who qualified for the disability amount. For information about the disability amount, see line 316.

Line 331 - Allowable amount of medical expenses for other dependants

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

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

For more information, see Guide RC4064, Medical and Disability-Related Information .

Calculate, for each dependant, the medical expenses you are claiming on this line. The total of these expenses must exceed the lesser of $2, 109 and 3% of the dependant’s net income for the year.

Use the following chart for each dependant:

Other dependant's medical expenses  
Less: $2,109 or 3% of line 236 of that dependant (whichever is less) -
Allowable medical expenses  

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

Line 349 - Donations and gifts

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

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

Gifts to Canada include monetary gifts made directly to the federal debt servicing and reduction account. If you made such a gift, which will be used only to service the public debt, you should have received a tax receipt. To make a gift to this account, make it payable to the Receiver General, and send it with a note asking that we apply it to this account, to:

Place du Portage
Phase III, 11 Laurier Street
Gatineau QC
K1A 0S5.

Supporting documents - If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your completed Schedule 9 and your official receipts showing either your or your spouse’s or common-law partner’s name.

Do not send official receipts for amounts shown in box 46 of your T4 slips, box 046 of your T4A slips, box 48 of your T3 slips, box 103 of your T5013 or T5013A slips, or on financial statements showing an amount a partnership allocated to you. Keep copies of all your documents in case we ask to see them at a later date.

If you received a T5003 slip with an amount shown in box 13, you must attach this slip as well as the charitable donation receipt you received from the registered charity. You must also complete and attach Form T5004, Claim for Tax Shelter Loss or Deduction, to your return. For more information, see Tax shelters.

If you attached to a previous year’s return a receipt for a donation you are claiming for 2012, tell us in writing with which return it was sent. If you need more information about official receipts, see Pamphlet P113, Gifts and Income Tax .

Allowable charitable donations and government gifts (line 340 of Schedule 9)

Add up all of the eligible amounts of your donations to registered charities and other qualified donees made in 2012 plus donations made in any of the previous five years that have not been claimed before. This includes gifts to Canada, a province or a territory. For a list of the types of donees who qualify, use Info-Tax, one of our TIPS services, or see Pamphlet P113, Gifts and Income Tax.

Under proposed changes, the eligible amount is the amount by which the fair market value of your gift or monetary contribution exceeds any advantage that you received or will receive for making the donation or gift. Generally, an advantage includes the value of certain property, service, compensation, use, or any other benefit. This applies to any donations or gifts made after December 20, 2002. For more information, see Pamphlet P113, Gifts and Income Tax.

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

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

Tax Tip
You do not have to claim, on your return for 2012, the donations you made in 2012. It may be more beneficial for you not to claim them for 2012, but to carry them forward and claim them on your return for any of the next five years. No matter when you claim them, you can claim them only once.

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

Cultural and ecological gifts (line 342 of Schedule 9)

Unlike other donations, your total eligible amount claimed for these types of gifts is not limited to a percentage of net income. You can choose the part you want to claim in 2012 and carry forward any unused part for up to five years. For more information about the amount to claim for these gifts, see Pamphlet P113, Gifts and Income Tax.

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