ARCHIVED - Federal Income Tax and Benefit Guide – 2020 – Non-refundable credits

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• Step 5 – Federal tax
  • Part A –  Federal tax on taxable income
  • Part B – Federal non-refundable tax credits
    • Canada caregiver amount – Summary table
    • Newcomers to Canada and emigrants
    • Amounts for non-resident dependants
    • Line 30300 – Spouse or common-law partner amount
      • Net income of spouse or common-law partner
    • Line 30400 – Amount for an eligible dependant
      • Eligible dependant with an impairment in physical or mental functions
    • Line 30800 – Base CPP or QPP contributions through employment income
      • CPP working beneficiaries
      • Making additional CPP contributions
      • Overpayment
    • Line 31000 – Base CPP or QPP contributions on self-employment and other earnings
    • Line 31200 – Employment insurance premiums through employment
      • Insurable earnings
      • Overpayment
      • Request for refund of EI contributions
    • Line 31205 – Provincial parental insurance plan (PPIP) premiums paid
    • Line 31210 – PPIP premiums payable on employment income
    • Line 31350 – Digital news subscription expenses
    • Line 31600 – Disability amount (for self)
    • Line 31800 – Disability amount transferred from a dependant
    • Line 32400 – Tuition amount transferred from a child
      • Amounts claimed by student's spouse or common law partner
      • No amounts claimed by student's spouse or common law partner
    • Line 33099 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later
      • Eligible medical expenses
    • Line 33199 – Allowable amount of medical expenses for other dependants

Step 5 – Federal tax

Part A – Federal tax on taxable income

 Complete the appropriate column depending on the amount of your taxable income using the instructions provided in Part A of your return.

Part B – Federal non-refundable tax credits

Claim the non-refundable tax credits that apply to you on lines 30000 to 34900, using your information slips along with the instructions provided on your return and on any applicable worksheet, schedule, and form. In this section of the guide, you will find information you may need to supplement the instructions on the return.

This section does not provide supplementary information for line 30000, line 30100, line 30425, line 30450, line 30499, line 30500, line 31215, line 31217, line 31220, line 31240, line 31260, line 31270, line 31285, line 31300, line 31400, line 31900, line 32300, line 32600, and line 34900, as the instructions on the return or in other information products provide the information you need.

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

The Canada Revenue Agency (CRA) may ask for a signed statement from a medical practitioner 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 the impairment in physical or mental functions, is, and will likely continue to be, dependent on others for an indefinite duration. Because of this impairment, they need much more help for their personal needs and care when compared to children of the same age. You do not need a signed statement from a medical practitioner if the CRA already has an approved Form T2201, Disability Tax Credit Certificate, for a specified period.

Newcomers to Canada and emigrants

If you became or ceased to be a resident of Canada for income tax purposes during 2020, you may have to reduce your claim for the amounts on line 30000, line 30100, line 30300, line 30400, line 30425, line 30450, line 30500, line 31800, line 32400, and line 32600 of your return and, in some cases, line 31600 of your return. For more information, see Pamphlet T4055, Newcomers to Canada, or go to Individuals - Leaving or entering Canada and non-residents.

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 where they live, the CRA does not consider them to depend on you for support. Gifts are not support.

Line 30300 – Spouse or common-law partner amount

Claim this amount if, at any time in the year, you supported your spouse or common law partner and their net income (defined below) was less than your basic personal amount (or your basic personal amount plus $2,273, if they were dependent on you because of an impairment in physical or mental functions).

If you had to make support payments to your current or former spouse or common-law partner and you were separated for only part of 2020 because of a breakdown in your relationship, you have a choice. You can claim either:

• the deductible support amounts paid in the year to your spouse or common-law partner on line 22000 of your return
• an amount on line 30300 of your return for your spouse or common-law partner

Claim whichever is better for you.

If you reconciled with your spouse or common-law partner before the end of 2020, you can claim an amount on line 30300 of your return and any allowable amounts on line 32600 of your return.

Both of you cannot claim the amount on line 30300 for each other for the same year.

Net income of spouse or common-law partner

This is the amount on line 23600 of your spouse’s or common-law partner’s return, or the amount it would be if they filed a return.

If you were living with your spouse or common-law partner on December 31, 2020, use their net income for the whole year. This applies even if you got married or got back together with your spouse in 2020 or you became a common-law partner or started to live with your common-law partner again.

If you separated in 2020 because of a breakdown in your relationship and were not back together on December 31, 2020, reduce your claim only by your spouse’s or common-law partner’s net income before the separation.

Line 30400 – Amount for an eligible dependant

Claim this amount if, at any time in the year, you supported an eligible dependant and their net income (that is indicated on line 23600 of their return, or the amount it would be if they filed a return) was less than your basic personal amount (or your basic personal amount plus $2,273, if they were dependent on you because of an impairment in physical or mental functions).

If you have not claimed an amount for the year on line 30300 of your return, you may be able to claim this amount for one dependant if, at any time in the year, you met all the following conditions at once:

• you did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person
• you supported the dependant in 2020
• you lived with the dependant (in most cases in Canada) in a home you maintained. You cannot claim this amount for a person who was only visiting you

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

• your parent or grandparent by blood, marriage, common-law partnership, or adoption
• your child, grandchild, brother, or sister by blood, marriage, common-law partnership, or adoption and was under 18 years of age or had an impairment in physical or mental functions

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

• You or someone else is claiming a spouse or common-law partner amount (line 30300 of return) for this dependant
• The person for whom you want to claim this amount is your common-law partner. However, you may be able to claim the amount on line 30300 of your return
• Someone else is claiming an amount on line 30400 of their return for this 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
• Someone else in your household is making this claim (each household is allowed only one claim for this amount, even if there is more than one dependant in the household)
• The claim is for a child for whom you had to make support payments for 2020. However, if you were separated from your spouse or common-law partner for only part of 2020 because of a breakdown in your relationship, you may be able to claim an amount for that child on line 30400 (plus any allowable amounts on line 30425 and line 31800 of your return) if you do not claim any support amounts paid to your spouse or common-law partner on line 22000 of your return. Claim whichever is better for you

Eligible dependant with an impairment in physical or mental functions
If the eligible dependant is 18 years of age or older and dependent on you because of an impairment in physical or mental functions, you may also be able to claim an amount up to a maximum of $7,276 on line 30425 of your return.
If the eligible dependant is under 18 years of age at the end of the year, you may claim one of the following amounts:

• $2,273 on line 30500 of your return for each eligible dependant who is your or your spouse’s or common-law partner’s child
• $2,273 in the calculation of line 30400 of your Schedule 5 if the eligible dependant does not meet the definition of child

• your or your spouse’s or common-law partner’s biological or adopted child
• a person who is wholly dependent on you for support and of whom you have custody and control
• your child’s spouse or common-law partner
  

You cannot split this amount with another person. Once you claim this amount for a dependant 18 years of age or older, no one else can claim this amount or an amount on line 30425 of the return for that dependant.

If you were a single parent on December 31, 2020 and you choose to include all the universal child care benefit lump-sum payment you received in 2020 in the income of your dependant, include this amount in the calculation of their net income.

Line 30800 – Base CPP or QPP contributions through employment income

CPP and QPP rates for base contributions are different. Find your situation in the first two columns and follow the instructions in the third column.

CPP working beneficiaries
If you are 60 to 70 years of age, employed or self-employed, and you are 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 or revoke a prior-year election. For more information, see Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election, and Schedule 8 or Form RC381, whichever applies.

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:

• You had more than one employer in 2020
• You had income, such as tips, from which your employer did not have to withhold contributions
• You were in a type of employment not covered under CPP rules, such as casual employment

Generally, if the total of your CPP, QPP, or both contributions through employment, as shown in boxes 16 and 17 of your T4 slips, is less than $2,898 you can contribute 10.5% on any part of the income on which you have not already made contributions. The maximum income for 2020 on which you can contribute to the CPP is $58,700.

To calculate and make additional CPP contributions for 2020, complete Form CPT20, Election to Pay Canada Pension Plan Contributions, and Schedule 8 or Form RC381, whichever applies. Form CPT20 lists the eligible employment income on which you can make additional CPP contributions.

Tax-exempt employment income earned by a registered Indian or a person entitled to be registered as an Indian under the Indian Act – If you are a registered Indian, or a person entitled to be registered as an Indian 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 be able to contribute to the CPP on this income. For more benefit and tax information for aboriginal peoples, go to Aboriginal peoples.

Overpayment
Find your situation and follow the instructions that apply to you.

Even if you contributed less than the maximums noted above, you may have an overpayment because your claim must be prorated in certain situations in 2020, such as one of the following:

• You were a CPP participant and turned 18 or 70 years of age, or received a CPP disability pension
• You were a QPP participant and turned 18 years of age, or received a QPP disability pension
• You were a CPP working beneficiary and elected to stop paying CPP contributions or revoked an election made in a previous year
• You are filing a return for a person who died in 2020

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

Line 31000 – Base CPP or QPP contributions on self-employment and other earnings

Claim, in dollars and cents, the total base CPP and QPP contributions calculated on your self-employment income and other earnings. For more information, see line 22200.

Line 31200 – Employment insurance premiums through employment

Find your situation and follow the instructions that apply to you.

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 (or box 14 if box 24 is blank).

If your total insurable earnings are $2,000 or less, do not enter any premiums on line 31200 of your return. Instead, enter the total on line 45000 of your return.

Overpayment

You may have an overpayment of your premiums even if you contributed the maximum amount or an amount that is less than what is required for the year. The CRA will calculate the overpayment for you. If you want to calculate your overpayment, complete Form T2204, Employee Overpayment of Employment Insurance Premiums, or complete Schedule 10 if you were a resident of Quebec and worked outside Quebec.

If you repaid some of the EI benefits you received, do not claim the repayment on this line. You may be able to claim a deduction on line 23200 of your return for the benefits you repaid.

Find your situation and follow the instructions that apply to you.

The CRA will refund the unused overpayment to you or use it to reduce your balance owing. If the difference is $1 or less, you might not receive a refund.

Request for refund of EI contributions

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

Line 31205 – Provincial parental insurance plan (PPIP) premiums paid

If you were a resident of Quebec on December 31, 2020, and worked in Quebec during the year, claim, in dollars and cents, the total of the amounts shown in box 55 of your T4 slips. The maximum you can claim is $387.79. Claim any overpayment on your provincial income tax return for Quebec.

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

Line 31210 – PPIP premiums payable on employment income

If you were a resident of Quebec on December 31, 2020, claim, in dollars and cents, the amount from line 19 of Schedule 10 if the following two conditions apply:

• Your employment income (including employment income from outside Canada) is $2,000 or more
• One of your T4 slips has a province of employment other than Quebec in box 10

The maximum amount you can claim is $387.79.

NewLine 31350 – Digital news subscription expenses

You can claim up to $500 for amounts you paid in 2020 for qualifying subscription expenses. You must have paid the amounts to a qualified Canadian journalism organization (QCJO) that does not hold a licence to broadcast, for a digital news subscription to content that is primarily original news.

Only the individual(s) who entered into the agreement for the subscription can claim the expenses. If you and another person can claim the same qualifying subscription expenses, you can split the claim for that digital news subscription expenses. However, the total amount of your claim and the other person’s claim cannot exceed the maximum amount allowed for this credit.

Line 31600 – Disability amount (for self)

You may be able to claim the disability amount if the CRA approved your Form T2201, Disability Tax Credit Certificate, that was certified by a medical practitioner.

To be eligible, you must have had a severe and prolonged impairment in physical or mental functions during 2020. An impairment is prolonged if it has lasted, or is expected to last, for a continuous period of at least 12 months.

If you were eligible for the disability tax credit for 2019 and you still meet the eligibility requirements in 2020, you can claim this amount without sending the CRA a new Form T2201. However, you must send the CRA a new one if the previous period of approval ended before 2020 or if the CRA asks you to.

For more information, see Guide RC4064, Disability-Related Information, or go to Tax credits and deductions for persons with disabilities.

Line 31800 – Disability amount transferred from a dependant

You may be able to claim all or part of your dependant’s (other than your spouse’s or common-law partner’s) disability amount (line 31600 of the return) if all of the following apply:

• The CRA approved Form T2201, Disability Tax Credit Certificate, that was certified by a medical practitioner, for your dependant
• Your dependant was resident in Canada at any time in 2020
• They were dependent on you on a regular and consistent basis for all or some of the basic necessities of life (such as food, shelter, and clothing)

One of the following situations applies:

• You claimed an amount on line 30400 of your return for that dependant, or you could have if you did not have a spouse or common-law partner and if the dependant did not have any income (see line 30400 for conditions)
• The dependant was your or your spouse’s or common-law partner’s parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew and you claimed an amount on line 30450 of your return for that dependant, or you could have if they had no income and had been 18 years of age or older in 2020

If your dependant was eligible for the disability tax credit for 2019 and still meets the requirements in 2020, you can claim this amount without sending the CRA a new Form T2201. However, you must send the CRA a new one if the previous period of approval ended before 2020 or if the CRA asks you to.

For more information about different amounts you may be able to claim, see Guide RC4064, Disability-Related Information or go to Tax credits and deductions for persons with disabilities.

Line 32400 – Tuition amount transferred from a child

The student has to complete the “Transfer or carryforward of unused amount” section of Schedule 11 to transfer an amount. The student must also complete the back of any of the following applicable forms to indicate the amount that is transferred and to designate you as the person who can claim the amount:

• Form T2202, Tuition and Enrolment Certificate
• Form TL11A, Tuition and Enrolment Certificate – University Outside Canada
• Form TL11C, Tuition and Enrolment Certificate – Commuter to the United States

If the amount being transferred to you is 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 30300, line 30425, or line 32600 of the return for the student, you cannot claim an amount on line 32400 of your return for that student. However, the student’s spouse or common-law partner can include the transfer on line 32600 of their return.

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 30300, line 30425, or line 32600 of their return 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 32400 of their return.

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 30400 or line 30450 of their return for the student.

Line 33099 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2003 or later

You can claim eligible medical expenses paid in any 12-month period ending in 2020 and not claimed for 2019. Generally, you can claim all amounts paid that exceed a certain threshold, even if they were not paid in Canada. Medical expenses for other dependants must be claimed on line 33199 of your return.

You can claim on line 33099 of your return the total eligible medical expenses you or your spouse or common-law partner paid for each of the following persons:

• yourself
• your spouse or common-law partner
• your or your spouse’s or common-law partner’s children under 18 years of age at the end of the year

Eligible medical expenses

The most common eligible medical expenses are:

• payments to a medical doctor, dentist, nurse, or certain other medical professionals or to a public or licensed private hospital
• payments for prescription drugs, artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, and certain prescription medical devices
• premiums paid to private health services plans (other than those paid by an employer, such as the amount shown in box J of your Quebec Relevé 1 slip)
• premiums paid under a provincial or territorial prescription drug plan, such as the Quebec Prescription Drug Insurance Plan and the Nova Scotia Seniors’ Pharmacare Program (amounts or premiums paid to provincial or territorial government medical or hospitalization plans are not eligible)
• certain cannabis products purchased for a patient for medical purposes
• certain expenses incurred for an animal specially trained to assist a patient in coping with any of the following impairments:
  • blindness
  • profound deafness
  • severe autism
  • severe diabetes
  • severe epilepsy
  • a severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs
  • a severe mental impairment, if the animal is specially trained to do specific tasks (excluding the provision of emotional support)

These expenses include such things as the cost of the animal, care and maintenance of the animal (including food and veterinary care), reasonable travel expenses for the patient to attend a facility that trains individuals in the handling of these service animals, and reasonable board and lodging for full-time attendance at the facility. The special training of the animal has to be one of the main purposes of the person or organization that provides the animal.

For more information about medical expenses you can claim, including reimbursement and travel expenses, go to lines 33099 and 33199 – Eligible medical expenses you can claim on your tax return or use the CRA’s Tax Information Phone Services. You can also see Guide RC4065, Medical Expenses, and Income Tax Folio S1-F1-C1, Medical Expense Tax Credit.

Line 33199 – Allowable amount of medical expenses for other dependants

You can claim on line 33199 of your return the part of eligible medical expenses you or your spouse or common-law partner paid for each of the following persons who depended on either of you for support:

• your or your spouse’s or common-law partner’s children 18 years of age or older in 2020, or grandchildren
• your or your spouse’s or common-law partner’s parents, grandparents, brothers, sisters, aunts, uncles, nieces, or nephews who were residents of Canada at any time in the year

For examples of expenses you can claim, see Eligible medical expenses. The expenses you claim on line 33199 of your return must be paid in the same 12-month period used to calculate the eligible medical expenses you claimed at line 33099 of your return.

For more information, see Guide RC4065, Medical Expenses.

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