ARCHIVED - Information for Residents of Yukon

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Table of contents

• What's new for 2016?
• General information
  • Yukon child benefit
  • Did you reside on the Settlement Land of a Yukon First Nation
• Completing your Yukon forms
• Form YT428, Yukon Tax
  • Step 1 – Yukon non-refundable tax credits
    • Newcomers to Canada and emigrants
    • ▼Line 5804 – Basic personal amount
    • ▼Line 5808 – Age amount
    • ▼Line 5812 – Spouse or common-law partner amount
    • Line 5816 – Amount for an eligible dependant
    • Line 5825 – Family caregiver amount for infirm children under 18 years of age
    • Line 5820 – Amount for infirm dependants age 18 or older
    • Line 5824 – CPP or QPP contributions through employment
    • Line 5828 – CPP or QPP contributions on self-employment and other earnings
    • Line 5832 – Employment insurance premiums through employment
    • Line 5829 – Employment insurance premiums on self-employment and other eligible earnings
    • Line 5834 – Canada employment amount
    • ▼Line 5835 – Public transit amount
    • Line 5841 – Children's arts amount
    • Line 5833 – Adoption expenses
    • ▼Line 5836 – Pension income amount
    • Line 5840 – Caregiver amount
    • ▼Line 5844 – Disability amount (for self)
    • Line 5848 – Disability amount transferred from a dependant
    • Line 5852 – Interest paid on your student loans
    • Line 5856 – Your tuition, education, and textbook amounts
    • Line 5860 – Tuition, education, and textbook amounts transferred from a child
    • ▼Line 5864 – Amounts transferred from your spouse or common-law partner
    • ▼Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 1999 or later
    • Line 5872 – Allowable amount of medical expenses for other dependants
    • ▼Line 5896 – Donations and gifts
  • Step 2 – Yukon tax on taxable income
  • Step 3 – Yukon tax
    • Line 44 – Yukon tax on split income
    • Line 51 – Yukon additional tax for minimum tax purposes
    • Line 53 – Territorial foreign tax credit
    • Lines 55 to 56 – Yukon political contribution tax credit
• Form YT479, Yukon Credits
  • Line 1 – Children's fitness tax credit
  • Lines 2 to 9 – Small business investment tax credit
  • Lines 10 to 19 – Labour-sponsored venture capital corporation tax credit
  • Line 20 – Research and development tax credit
  • ▼Line 22 – Yukon First Nations income tax credit
• For more information

Retired seniors: look for the ▼ symbol

If you are a retired ▼ senior, the symbol in this document and the General Income Tax and Benefit Guide will help you find information on the most common types of pension income, as well as deductions and credits that you may be entitled to.

If you received income or want to claim deductions or credits that are not identified with the ▼ symbol, read the information for those types of income, deductions, or credits.

What's new for 2016?

The income levels and most of the non‑refundable tax credits used to calculate your Yukon income tax have changed.

The Yukon overseas employment tax credit has been eliminated and removed from Form YT428, Yukon Tax.

The calculation of the Yukon political contribution tax credit has changed to match the federal calculation.

The rate used to calculate the dividend tax credit for other than eligible dividends has changed.

Form YT428, Yukon Tax, reflects these changes.

General information

Yukon child benefit

The Yukon child benefit is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under 18 years of age. This amount is combined with the Canada child benefit into a single monthly payment.

For more information on the payment amounts, see Booklet T4114, Canada Child Benefit.

File your return – You (and your spouse or common-law partner) need to file your 2016 income tax and benefit return(s) to receive the Yukon child benefit. The information you give on your return(s) will determine how much you will get starting in July 2017. To ensure timely delivery of payments, file your 2016 return(s) by April 30, 2017.

This program is funded by Yukon with a contribution from Indigenous and Northern Affairs Canada on behalf of Indian children, as per the definition of "Indian" in the Indian Act. For more information, call 1-800-387-1193.

Did you reside on the Settlement Land of a Yukon First Nation

If you resided on the Settlement Land of a self-governing Yukon First Nation at the end of the year, enter the First Nation name and identification number on page 1 of your return.

Complete Form YT432, Yukon First Nations Tax, to calculate the part of federal and territorial tax that is transferred to the self-governing Yukon First Nation government responsible for the Settlement Land where you resided. Attach a copy to your return.

Completing your Yukon forms

You can download and print a copy of Form YT428, Yukon Tax, Form YT479, Yukon Credits, and Form YT432, Yukon First Nations Tax, which you need to calculate your Yukon tax and credits. Complete the forms that apply to you, and attach a copy to your return.

The following information will help you complete Form YT428, Form YT479, and Form YT432.

The terms spouse and common-law partner are defined in the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2016, the date you left Canada if you emigrated in 2016, or the date of death for a person who died in 2016.

Form YT428, Yukon Tax

Complete Form YT428 if you were a resident of Yukon at the end of the year.

If you had income from a business (including income you received as a limited or non-active partner), and the business has a permanent establishment outside of Yukon, complete Form T2203, Provincial and Territorial Taxes for 2016 – Multiple Jurisdictions, instead of completing Form YT428.

You also have to complete Form YT428 if you were a non-resident of Canada in 2016 and you earned income from employment in Yukon or received income from a business with a permanent establishment only in Yukon.

Step 1 – Yukon non-refundable tax credits

The eligibility criteria and rules for claiming the Yukon non-refundable tax credits are the same as for the federal non-refundable tax credits. In addition, the value and calculation of many of the Yukon non-refundable tax credits are the same as the corresponding federal credits.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300, 301, 303, 305, 367, 306, 315, 316, 318, 324, and 326 of your federal Schedule 1, you have to prorate the corresponding territorial amounts on lines 5804, 5808, 5812, 5816, 5825, 5820, 5840, 5844, 5848, 5860, and 5864.

▼Line 5804 – Basic personal amount

Claim $11,474.

▼Line 5808 – Age amount

You can claim this amount if you met the rules for claiming the amount on line 301 of federal Schedule 1. Enter on line 5808 the amount you claimed on line 301 of your federal Schedule 1.

▼Line 5812 – Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1. Enter on line 5812 the amount you claimed on line 303 of your federal Schedule 1.

Line 5816 – Amount for an eligible dependant

You can claim this amount if the rules are met for claiming the amount on line 305 of federal Schedule 1. Enter on line 5816 the amount you claimed on line 305 of your federal Schedule 1.

Line 5825 – Family caregiver amount for infirm children under 18 years of age

You can claim this amount if the rules are met for claiming the amount on line 367 of federal Schedule 1. Enter on line 5825 the amount you claimed on line 367 of your federal Schedule 1.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim this amount if the rules are met for claiming the amount on line 306 of federal Schedule 1. Enter on line 5820 the amount you claimed on line 306 of your federal Schedule 1.

Line 5824 – CPP or QPP contributions through employment

Enter on this line the amount you claimed on line 308 of your federal Schedule 1.

Line 5828 – CPP or QPP contributions on self-employment and other earnings

Enter on this line the amount you claimed on line 310 of your federal Schedule 1.

Line 5832 – Employment insurance premiums through employment

Enter on this line the amount you claimed on line 312 of your federal Schedule 1.

Line 5829 – Employment insurance premiums on self-employment and other eligible earnings

Enter on this line the amount you claimed on line 317 of your federal Schedule 1.

Line 5834 – Canada employment amount

You can claim this amount if you met the rules for claiming the amount on line 363 of federal Schedule 1. Enter on line 5834 the amount you claimed on line 363 of your federal Schedule 1.

▼Line 5835 – Public transit amount

You can claim this amount if you met the rules for claiming the amount on line 364 of federal Schedule 1. Enter on line 5835 the amount you claimed on line 364 of your federal Schedule 1.

Line 5841 – Children's arts amount

You can claim to a maximum of $500 per child the fees paid in 2016 relating to the cost of registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program 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 tax credit on line 5844 of Form YT428) at the start of the year in which an eligible arts expense was paid.

You can claim this amount if another person has not claimed the same fees and the total claimed is not more than the maximum allowable amount if only one of you were making the claim.

Children with disabilities – If the child is eligible for the disability tax credit and is under 18 years of age at the start of the year, you can claim an additional $500 if a minimum of $100 is paid for registration or membership fees for a prescribed artistic program described in the next section.

Prescribed program

To qualify for this amount, a program must:

• be ongoing (last at least eight consecutive weeks, or in the case of children's camps, five consecutive days);
• be supervised; and
• be suitable for children.

The program also has to meet at least one of the following criteria:

• it contributes to the development of creative skills or expertise in an artistic or cultural activity;
• it provides a substantial focus on wilderness and the natural environment;
• it helps children develop and use particular intellectual skills;
• it includes structured interaction between children where supervisors teach or help children develop interpersonal skills; or
• it provides enrichment or tutoring in academic subjects.

Reimbursement of an eligible expense – You can claim only 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 – Do not submit any supporting documents at the time of filing your tax return. Keep them in case we ask to see them later.

Line 5833 – Adoption expenses

You can claim this amount if the rules are met for claiming the amount on line 313 of federal Schedule 1. Enter on line 5833 the amount you claimed on line 313 of your federal Schedule 1.

▼Line 5836 – Pension income amount

You can claim this amount if you met the rules for claiming the amount on line 314 of federal Schedule 1. Enter on line 5836 the amount you claimed on line 314 of your federal Schedule 1.

Line 5840 – Caregiver amount

You can claim this amount if the rules are met for claiming the amount on line 315 of federal Schedule 1. Enter on line 5840 the amount you claimed on line 315 of your federal Schedule 1.

▼Line 5844 – Disability amount (for self)

You can claim this amount if you met the rules for claiming the amount on line 316 of federal Schedule 1. Enter on line 5844 the amount you claimed on line 316 of your federal Schedule 1.

Line 5848 – Disability amount transferred from a dependant

You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1. Enter on line 5848 the amount you claimed on line 318 of your federal Schedule 1.

Line 5852 – Interest paid on your student loans

Enter on this line the amount you claimed on line 319 of your federal Schedule 1.

Line 5856 – Your tuition, education, and textbook amounts

Complete Schedule YT(S11), Territorial Tuition, Education, and Textbook Amounts.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule YT(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.

Transferring and carrying forward amounts

You may not need all of your 2016 tuition, education, and textbook amounts to reduce your territorial income tax to zero. In this case, you can transfer all or some of the unused part to one person, either your spouse or common-law partner (who would claim it on line 5864) or your or your spouse's or common-law partner's parent or grandparent (who would claim it on line 5860).

You can only transfer an amount to your parent or grandparent, or your spouse's or common-law partner's parent or grandparent, if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.

To designate who can claim the transferred amount and to specify the amount this person can claim, complete the "Transfer/Carryforward of unused amount" section of Schedule YT(S11) to calculate the territorial amount available to transfer, as well as the related form:

• T2202A, Tuition, Education, and Textbook Amounts Certificate;
• TL11A, Tuition, Education, and Textbook Amounts Certificate - University Outside Canada;
• TL11B, Tuition, Education, and Textbook Amounts Certificate - Flying School or Club; or
• TL11C, Tuition, Education, and Textbook Amounts Certificate - Commuter to the United States.

The transferred amount may be different from the amount calculated for the same person on your federal Schedule 11. Enter the territorial amount you are transferring on line 24 of your Schedule YT(S11).

Complete the "Transfer/Carryforward of unused amount" section of Schedule YT(S11) to calculate the amount you can carry forward to a future year. This amount corresponds to the part of your tuition, education, and textbook amounts you do not need to use (and do not transfer) for the year.

Line 5860 – Tuition, education, and textbook amounts transferred from a child

You can claim these amounts if the rules are met for claiming an amount on line 324 of federal Schedule 1.

Enter on line 5860 the total of all territorial amounts that each student has transferred to you as shown on his or her Form T2202A, TL11A, TL11B, or TL11C.

Supporting documents – If you are filing electronically or filing a paper return, do not send any documents. Keep all your documents in case we ask to see them later. The student must attach Schedule YT(S11) to his or her paper return.

▼Line 5864 – Amounts transferred from your spouse or common-law partner

You can claim these amounts if the rules are met for claiming an amount on line 326 of federal Schedule 1.

Complete Schedule YT(S2), Territorial Amounts Transferred From Your Spouse or Common-law Partner, and attach a copy to your return.

▼Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 1999 or later

The medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2016, and no one claimed them on a 2015 return.

Line 5872 – Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can claim medical expenses for other dependants.

The medical expenses you can claim on line 5872 are the same as those you can claim on line 331 of your federal Schedule 1. They have to cover the same 12-month period ending in 2016, and no one claimed them on a 2015 return.

▼Line 5896 – Donations and gifts

Enter the amounts from lines 16 and 17 of your federal Schedule 9 and multiply them by the rates on lines 31 and 32 of Form YT428.

Step 2 – Yukon tax on taxable income

Enter on line 35 your taxable income from line 260 of your return. Complete the appropriate column depending on the amount entered.

Step 3 – Yukon tax

Line 44 – Yukon tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the Yukon tax that applies to this income.

Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. For more information about tax on split income, see the General Income Tax and Benefit Guide.

Line 51 – Yukon additional tax for minimum tax purposes

If you have to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you will have to determine your Yukon additional tax for minimum tax purposes.

To do this, complete the calculation on line 51 of Form YT428.

For more information about minimum tax, see the General Income Tax and Benefit Guide.

Line 53 – Territorial foreign tax credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be eligible to claim a territorial foreign tax credit.

To claim this credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.

Enter on line 53 of Form YT428 the tax credit amount from line 5 of Form T2036.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form T2036.

Lines 55 and 56 – Yukon political contribution tax credit

You can deduct part of the contributions you made in 2016 to a registered Yukon political party or to a candidate seeking election to the Yukon Legislative Assembly.

How to claim

Enter your total contributions on line 55 of Form YT428, and calculate the amount to enter on line 56 as follows:

• For contributions of more than $1,275, enter $650 on line 56.
• For contributions of $1,275 or less, complete the calculation for line 56 on the Territorial Worksheet.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, for each contribution attach the official receipt signed by an official agent of the political party or candidate.

Form YT479, Yukon Credits

Line 1 – Children's fitness tax credit

You can claim fees paid in 2016 for the cost of registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program of physical activity. You can claim a maximum of $1,000 of eligible fees per child. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit at line 5844 of Form YT428,Yukon Tax) at the start of the year in which an eligible fitness expense was paid. The refundable part of the credit is 6.4% of the total eligible fees.

You can claim this tax credit if another person has not already claimed the same fees and the total claimed is not more than the maximum allowable tax credit if only one of you were making the claim.

Children with disabilities – If the child is eligible for the disability tax credit and is under 18 years of age at the start of the year, you can claim an additional $500 if a minimum of $100 is paid for registration or membership fees for a prescribed program of physical activity described in the next section.

Prescribed program

To qualify for this tax credit, a program must:

• be ongoing (last at least eight consecutive weeks, or in the case of children's camps, five consecutive days);
• be supervised;
• be suitable for children; and
• require significant physical activity (most of the activities must generally include a significant amount of physical activity contributing to cardiorespiratory endurance and muscular strength, muscular endurance, flexibility, and/or balance).

Reimbursement of an eligible expense – You can claim only the part of the tax credit for which you have not been or will not be reimbursed. However, you can claim the full tax credit 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.

Enter on line 6392 the amount of the total eligible fees up to a maximum of $1,000 per child. Multiply this amount by 6.4% and enter the result on line 1.

Supporting documents – Do not submit any supporting documents at the time of filing your tax return. Keep them in case we ask to see them later.

Lines 2 to 9 – Small business investment tax credit

You can claim this credit if at the end of the year you were a resident of Yukon and you were 19 years of age or older.

The credit is equal to 25% of the value of eligible shares and subordinated debt that you invested in eligible Yukon businesses in 2016 (that you did not claim on your 2015 return) or in the first 60 days of 2017.

Enter on line 2 of Form YT479 the amount of the tax credit shown on Certificate YSBITC-1, Small Business Corporation Investment Tax Credit (issued by the Yukon government).

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your YSBITC-1 certificate.

Unused small business investment tax credit

You can carry forward your unused small business investment tax credits for seven years or carry them back three years.

Any unused tax credit is shown on your most recent notice of assessment or notice of reassessment. Enter any unused credit from previous years on line 3 of Form YT479 to reduce your 2016 Yukon tax. The maximum amount available is $25,000 per year. This limit includes any carryover amount.

You may not need all of your credit to reduce your 2016 territorial income tax to zero. Complete the calculation for lines 7 to 9 on the Territorial Worksheet to determine any unused credit available to carry back to previous years.

Lines 10 to 19 – Labour-sponsored venture capital corporation tax credit

You can claim a credit equal to 25% of eligible investments you made in the Fireweed Fund Corporation in 2016 (that you did not claim on your 2015 return) or in the first 60 days of 2017. The maximum annual credit is $1,250.

If the investment was made into a spousal or common-law partner registered retirement savings plan, you or your spouse or common-law partner may claim the tax credit.

Enter on line 10 of Form YT479 the amount of the tax credit shown on the tax credit certificate you received from the Fireweed Fund Corporation.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your certificate.

Unused labour-sponsored venture capital corporation tax credit

You can carry forward your unused labour-sponsored venture capital corporation tax credits for seven years or carry them back three years.

Any unused tax credit is shown on your most recent notice of assessment or notice of reassessment. Enter any unused credit from previous years on line 11 of Form YT479 to reduce your 2016 Yukon tax.

You may not need all of your credit to reduce your 2016 territorial income tax to zero. Complete the calculation for lines 17 to 19 on the Territorial Worksheet to determine any unused credit available to carry back to previous years.

Line 20 – Research and development tax credit

You can claim this credit if you were a resident of Yukon at the end of the year and you made eligible expenditures in the tax year for scientific research and experimental development carried out in Yukon.

To claim this credit, complete Form T1232, Yukon Research and Development Tax Credit (Individuals).

Enter on line 20 of Form YT479 the tax credit from line 8 of Form T1232.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form T1232.

▼Line 22 – Yukon First Nations income tax credit

If you resided on the Settlement Land of a self-governing Yukon First Nation at the end of the year, complete Form YT432, Yukon First Nations Tax.

This form contains all the information about this credit.

For more information

If you have questions about Yukon tax credits, contact:

Department of Finance
Government of Yukon
2071 2^nd Avenue, 3^rd floor
Post Office Box 2703
Whitehorse YT Y1A 2C6

Call: 867-667-5343, or 1-800-661-0408

If you have questions about Yukon tax, visit the CRA website or call 1-800-959-8281.

To get forms, go to Forms and publications.