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ARCHIVED - Federal non-refundable tax credits

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On this page…

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. If, after you have read the information in this guide, you need more details about claiming the amounts on lines 300 to 306, get Interpretation Bulletin IT-513, Personal Tax Credits .

Newcomers to Canada and emigrants

If you immigrated to or emigrated from Canada in 2004, make sure you 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 to 306, 315 to 318, 324, and 326. For more details, get either pamphlet T4055, Newcomers to Canada , or pamphlet T4056, Emigrants and Income Tax , whichever applies.

Amounts for non-resident dependants (lines 303 and 306)

You may be able to claim an amount for certain dependants who live outside Canada if they depended on you for support. You may be able to make this claim for your spouse or common-law partner (line 303) and for your or your spouse or common-law partner's children and grandchildren who were born in 1986 or earlier and who were mentally or physically infirm (line 306). You cannot claim an amount for any other relatives who lived outside Canada for all of 2004.

If the above 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.

If you are filing a paper return, include proof of your payment of support. If you are filing electronically, keep these documents in case we ask to see them. The proof of payment has to show your name, the amount, 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 also have to appear on the proof of payment.

Line 300 - Basic personal amount

Claim $8,012.

Line 301 - Age amount

If you were 65 or older on December 31, 2004, and your net income (line 236 of your return) was:

Make sure you 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 - Amounts transferred from your spouse or common-law partner" for details.

Line 303 - Spouse or common-law partner amount

If, at any time in the year, you supported your spouse or common-law partner (see the definition) and his or her net income (see next section) was:

Make sure you enter your marital status and the information concerning your spouse or common-law partner in the Identification area on page 1 of your return. 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 2004 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 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 2004, you could 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 or common-law partner's return, or the amount that it would be if he or she filed a return.

If you were living with your spouse or common-law partner on December 31, 2004, use his or her net income for the whole year. This applies even if you got married or back together with your spouse in 2004, or you became a common-law partner or started to live with your common-law partner again (see definition). If you separated in 2004 because of a breakdown in your relationship, and were not back together on December 31, 2004, reduce your claim only by your spouse or common-law partner's net income before the separation. In either case, 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 or common-law partner's dividends. See line 120 for details.

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 of the following conditions at once:

In addition, at the time you met the above conditions, the dependant also must 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 credit.

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

How to claim

If your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) was:

Complete the appropriate part of Schedule 5 and attach it to your paper return.

Notes
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 both can 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 is allowed to claim it.

Tax Tip
If the dependant is infirm, see guide RC4064, Information Concerning People With Disabilities , for details about different amounts you may be able to claim.

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount for each of your or your spouse or common-law partner's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1986 or earlier.

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

Note
A child can include someone older than you who has become dependent on you.

If, for a particular dependant, anyone other than 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. If you are claiming an amount on line 305 for a dependant who is infirm and age 18 or older, you also may be able to claim a part of the 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 that it would be if he or she filed a return) is less than $9,152.

If you were required to make support payments for that 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 2004 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 may 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.

Tax Tip
See guide RC4064, Information Concerning People With Disabilities , for details about different amounts you may be able to claim.

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 $1,831.50.

If you contributed to the QPP in 2004 but lived outside Quebec on December 31, 2004, treat those contributions as if you made them to the CPP. Attach to your paper return the RL-1 slip your employer sent you.

If you contributed more than $1,831.50, 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, 2004, and contributed more than $1,831.50, claim the overpayment on your provincial income tax return for Quebec.

You may have an overpayment, even if you contributed $1,831.50 or less. For example:

You can calculate your overpayment, if any, using Form T2204, Employee Overpayment of 2004 Canada Pension Plan Contributions and 2004 Employment Insurance Premiums .

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 you were required. This can happen if any of the following applies:

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 $1,831.50, you can contribute 9.9% on any part of the income on which you have not already made contributions. The maximum income for 2004 for which you can contribute to the CPP is $40,500. Making additional contributions may increase the pension you receive later.

To make additional CPP contributions for 2004, complete Schedule 8 to calculate the amount of the additional contributions and claim the appropriate amounts at lines 222 and 310. Also, complete Form CPT20, Election to Pay Canada Pension Plan Contributions , and attach a copy of Schedule 8 and form CPT20 to your paper return, or send it to us separately on or before June 15, 2006. This form 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 a registered Indian with tax-exempt employment income, and there is no amount in box 16 of your T4 slip, 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

Claim, in dollars and cents, the total of the amounts shown in box 18 of all your T4 and T4F slips. Do not enter more than $772.20.

If you contributed more than $772.20, enter the excess amount on line 450 of your return. We will refund this overpayment to you, or use it to reduce your balance owing.

Insurable earnings

This is the total of all earnings on which you pay Employment Insurance premiums. These amounts are shown in box 24 of your T4 slips and box 16 of your T4F slips for 2004 (or box 14 if either of these boxes is blank).

You may have an overpayment of your premiums even if the total is $772.20 or less. This can happen when your insurable earnings are less than the total of all amounts in box 14 of all your T4 and T4F slips. You can calculate your overpayment, if any, using Form T2204, Employee Overpayment of 2004 Canada Pension Plan Contributions and 2004 Employment Insurance Premiums .

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.

You also may have an overpayment if your insurable earnings are more than $2,000 and less than $2,040. You can calculate your overpayment, if any, using Form T2204.

Line 314 - Pension income amount

You may be able to claim up to $1,000 if you reported pension or annuity income on line 115 or line 129 of your return. Therefore, make sure you have reported your pension or annuity income correctly. Complete the chart for line 314 on the Federal Worksheet in the forms book to calculate your claim.

Note
Only pension or annuity income you report on line 115 or 129 qualifies for the pension income amount. Therefore, amounts such as Old Age Security benefits, Canada Pension Plan benefits, Quebec Pension Plan benefits, Saskatchewan Pension Plan payments, death benefits, retiring allowances, and amounts in boxes 18, 20, 22, 26, 28, and 34 of your T4RSP slip 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 for details.

Line 315 - Caregiver amount

If, at any time in 2004, you (either alone or with another person) maintained a dwelling where you and a dependant lived, you may be able to claim this amount. The dependant must have been one of the following individuals:

In addition, the dependant must have met all of 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 2004 due to a breakdown in your relationship, you can still claim an amount for that child on line 315 (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 may claim whichever is better for you.

Complete the chart for line 315 on the Federal Worksheet in the forms book to calculate your claim. Complete the appropriate part of Schedule 5 and attach it to your paper return.

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.

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. See guide RC4064, Information Concerning People With Disabilities , for details about different amounts you may be able to claim.

Line 316 - Disability amount

You can claim $6,486 if one of the following conditions applies:

A. A medical doctor or optometrist certifies that you are blind all or almost all the time, even with the use of corrective lenses or medication, and the impairment is prolonged.

B. A qualified person certifies that all or almost all the time you were unable, or it took you an extremely long time, to do at least one of the following, even with therapy (other than life-sustaining therapy, see condition C), the use of appropriate devices, or medication:

C. A medical doctor certifies that you had to receive life-sustaining therapy to support a vital function, such as clapping therapy to help in breathing or kidney dialysis to filter your blood. This therapy must have been required (or be expected to be required) at least 3 times per week at an average of at least 14 total hours per week. Qualifying therapy does not include implanted devices, such as a pacemaker, or special programs of diet, exercise, hygiene, or medication.

To qualify under A, B, or C, you must have been (or be expected to be) in this situation for a continuous period of at least 12 months that included any part of 2004.

Note
If you receive a disability benefit (such as CPP or QPP disability benefits), it does not necessarily mean that you are eligible to claim this amount.

Supplement for persons under 18

If you qualify for the disability amount and you were under 18 at the end of the year, you can claim up to an additional $3,784. However, child care expenses (line 214) and attendant care expenses (on line 215 or as a medical expense on lines 330 or 331) anyone claimed for you for 2004 may reduce this claim.

How to claim

For more information, including details about different amounts you may be able to claim, get guide RC4064, Information Concerning People With Disabilities . This guide also contains Form T2201. We will accept a photocopy of your Form T2201 only if the signature of the person authorized to certify the impairment is an original, not a photocopy.

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.

Line 318 - Disability amount transferred from a dependant

You may be able to claim all or part of your dependant's disability amount (line 316) if he or she was resident in Canada at any time in 2004 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:

If you are required to make support payments for your child, you cannot claim a transfer of that child's disability amount. However, if you were separated from your spouse or common-law partner for only part of 2004 due to a breakdown in your relationship, you can still claim an amount for that child on line 318 (plus any allowable amounts on lines 305, 306, and 315) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You may claim whichever is better for you.

Notes
You cannot claim this credit 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 this claim with another individual, attach a note to your paper return including the name and social insurance number of the other individual who is making this claim. The total claimed for that dependant cannot be more than the maximum amount allowed for that dependant.

How to claim

Tax Tip
If you can claim this amount, you also may be able to claim an amount on line 315 for the same dependant. See guide RC4064, Information Concerning People With Disabilities , for details about different amounts you may be able to claim.

Line 319 - Interest paid on your student loans

A loan may have been made to you 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 most of the interest you, or a person related to you, paid on that loan in 2004 and/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.

Note
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. In addition, you cannot claim interest paid in respect of a judgment obtained after you failed to pay back a student loan.

Receipts - If you are filing a paper return, include receipts for the amounts you claim in 2004. If you are filing electronically keep them in case we ask to see them.

Line 323 - Tuition and education amounts

Claim your eligible tuition and education amounts for 2004, and any unused amounts carried forward from previous years that are shown on your Notice of Assessment or Notice of Reassessment for 2003. See "Transferring and carrying forward amounts" later on this page for more information. For more details, get pamphlet P105, Students and Income Tax .

Receipts - If you are filing a paper return, attach a completed Schedule 11, but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Eligible tuition fees

Generally, a course qualifies if it was taken at the post-secondary level or (for individuals aged 16 or over 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 2004.

Not all fees can be claimed. More than $100 for the year must have been paid to each educational institution whose fees you claim. In addition, you cannot claim other expenses, such as books, board and lodging, or students' association fees.

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 also can get Form TL11B from your flying school or club.

Education amount

You can claim this amount for each whole or part month in 2004 in which you were enrolled in a qualifying program. If you were under 16 at the end of the year, you can claim this amount only for courses you took at the post-secondary level.

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

Previously, you could not claim this amount if you received a salary or wages while studying in a program related to your job. Under proposed legislation, you can now claim this credit even if you received a salary or wages.

However, you can claim this amount if you received certain other kinds of payments, such as scholarships and student loans, or if you received and included in your income any financial assistance provided under either:

Your educational institution has to complete and give you either Form T2202, Education Amount Certificate , Form T2202A, Tuition and Education Amounts Certificate , or TL11A, Tuition and Education Amount Certificate - University Outside Canada , to confirm the period in which you were enrolled in a qualifying program. The following amounts apply for each month in which you were enrolled:

If you could attend only part-time because you had an impairment that restricted you in one of the activities listed at line 316, but your condition was not severe and prolonged, you can claim $400 per month. In that case, have an authorized person either complete Part 3 of Form T2202 or give you a signed letter certifying your impairment.

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

Transferring and carrying forward amounts

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

Complete Schedule 11 (particularly line 327) to calculate this transfer, as well as Form T2202, T2202A or Form TL11A, to designate it. Attach Schedule 11 to your return even if you are transferring your total tuition and education amounts.

You can carry forward and claim in a future year the part of your tuition and education 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 have to claim your carry-forward amount in the first year that you have to pay federal tax. Calculate the carry-forward amount on Schedule 11.

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

If you are transferring an amount to another person, do not transfer more than the 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 or common-law partner's tuition and education amounts on line 326, and/or your child or grandchild's tuition and education amounts on line 324.

Line 324 - Tuition and education transferred from a child

You may be the parent or grandparent of a student or his or her spouse or common-law partner. If so, the student may be able to transfer to you all or part of his or her tuition and education amounts for 2004. The maximum tuition and education amount transferred from a child (or from each child) is $5,000 minus the amounts that he or she uses, even if there is still an unclaimed part.

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

How to claim

The student has to complete Schedule 11 (particularly line 327) and attach it to his or her return, to calculate the transfer amount, and Form T2202, Education Amount Certificate , Form T2202A, Tuition and Education Amounts Certificate , or Form TL11A, Tuition and Education Amount Certificate - University Outside Canada to designate you as the person who can claim it. If the tuition fees being transferred to you are not shown on the student's Form T2202A, you should have a copy of the student's official tuition fees 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 that claims an amount on line 305 or 306 for the student.

Receipts - If you are filing a paper return, do not include the student's Schedule 11, forms, or official tuition fees receipts, but keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

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:

Note
Your spouse or common-law partner cannot transfer to you any tuition or education amounts carried forward from a previous year. In addition, he or she cannot transfer any unused amounts to you if you were separated because of a breakdown in your relationship for a period of 90 days or more that included December 31, 2004.

Complete Schedule 2 to calculate your claim. Make sure you enter your marital status and the information concerning 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 application 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 2003 and still met the eligibility requirements in 2004, you can claim this amount without sending us a new Form T2201. However, you have to send us one if the previous period of approval ended before 2004 or we ask you to do so.

Receipts - If you are filing a paper return, include the completed Schedule 2. If your spouse or common-law partner is not filing a return, also attach the information slips that show his or her income.

Do not include any receipts or forms (other than your own Schedule 2) for your spouse or common-law partner's tuition or education amounts, but keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Line 330 - Medical expenses for self, spouse or common-law partner, and your dependent children born in 1987 or later

Previously, you could claim your total eligible medical expenses at line 330. Under proposed legislation you can now claim at line 330 only the total eligible medical expenses you or your spouse or common-law partner paid for:

Medical expenses for other dependants must now be claimed at line 331

You can claim medical expenses paid in any 12-month period ending in 2004 and not claimed for 2003. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than either 3% of your net income (line 236) or $1,813, whichever is less.

On the return for a person who dies in 2004, 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.

Under proposed legislation, if you are claiming, on your return, expenses paid for a person who died in the year, these amounts can be claimed for any 24-month period that includes the date of death.

Tax tip
There is a refundable tax credit for working individuals with low incomes and high medical expenses (see "Line 452 - Refundable medical expense supplement").

Eligible medical expenses

Some eligible medical expenses that you can claim are:

You cannot claim these expenses at this line if you or another person will be claiming them at line 215.

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 all of the 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.

Example
Guy was in the hospital while on a business trip to Mexico. He paid $2,800 in Canadian dollars for allowable medical expenses, which are generally not limited to those paid in Canada. He was reimbursed for $1,500 of these expenses by his employer's health care plan. This was included on his T4 slip. Therefore, Guy can claim the full $2,800.

Travel expenses - If medical treatment is not available locally, you may be able to claim the cost of travelling 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 T.I.P.S. services. If you use the simplified method, you can find the rate per kilometre for each province or territory by visiting our Web site at www.cra.gc.ca/travelcosts.

For more information on medical expenses, use Info-Tax, one of our T.I.P.S. services. You can also get guide RC4064, Information Concerning People With Disabilities and Interpretation Bulletin IT-519.

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

The following example shows how to calculate your claim.

Example
Rick and his wife Paula have reviewed their medical bills and decided that the 12-month period ending in 2004 for which they will calculate their claim is July 1, 2003, through June 30, 2004.They incurred the following expenses:

Rick

$1,500

Paula

$1,000

Jenny (their 16 year old daughter)

$1,800

Kyle (their 19 year old son)

$1,000

Total medical expenses

$5,300

The total allowable expenses for 2004 are $4,300 which will be entered on line 330. As Kyle is over 18, his expenses will be reported at line 331.

Paula'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 $1,813, she enters $960 on the line below line 330 on Schedule 1 and subtracts it from $4,300. The difference is $3,340, which is the amount (A) above line 331.

Rick'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 $1,813, he enters $1,440 on the line below line 330, and subtracts it from $4,300. The difference is $2,860.

In this case, Paula and Rick have found it better for her to claim the expenses for them and their daughter Jenny.

Receipts - If you are filing a paper return, include your receipts and any receipts for the person that you are claiming (other than for premiums paid to a health services plan, which you should keep in case we ask to see them) and other documents. 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 also should 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 (line 316). In that case, if we do not have a valid Form T2201, Disability Tax Credit Certificate , for that person, you also have to attach a properly completed and certified copy of that application. We will review your claim before we assess your return to determine if the person for whom you are claiming medical expenses qualifies. If he or she qualified for the disability amount for 2003 and still met the eligibility requirements in 2004, you can claim this amount without sending us a new Form T2201. However, you have to send us one if the previous period of approval ended before 2004 or we ask you to do so.

If you are filing electronically, keep all of your documents in case we ask to see them.

Line 331 - Allowable amount of medical expenses for other dependants

Previously, if you claimed medical expenses (other than those for you or your spouse or common-law partner), you may have had to calculate a medical expense adjustment at this line. Under proposed legislation, you will now have to claim the portion of eligible medical expenses you or your spouse or common-law partner paid for the following persons who depended on you for support at line 331:

The expenses must meet the criteria in the section called "Eligible medical expenses" at line 330. Also, the claim must be for the same 12-month period that was determined at line 330.

You have to calculate, for each dependant, the medical expenses that you are claiming at this line. The total of these expenses must exceed the lesser of $1,813 and 3% of the dependant's net income for the year (line 236), up to a maximum of $5,000. Use the chart below for each dependant:

Other dependant's medical expenses

               

Less: $1,813 or 3% of line 236 of that dependant (whichever is less)

 –

Sub total

 =

Total allowable medical expenses (maximum $5,000)

 

Enter at line 331 the total of all allowable amounts in respect of each dependant.

Complete the appropriate part of Schedule 5 for each dependant and attach it to your paper return.

Example

Dan has two dependent children, Marc, who, is 19 years old and has a net income of $6,000, and Ross who is 21 years old and has a net income of $8,000. Dan has paid $2,000 in medical expenses for Marc and $6,000 in medical expenses for Ross. Dan's calculations are:

Other dependant's medical expenses (Marc)

     $2,000

Less: $1,813 or 3% of line 236 for Marc (whichever is less)

 –  $   180

Sub total

 =  $1,820

Total allowable medical expenses for Marc (maximum $5,000)

     $1,820

 

Other dependant's medical expenses (Ross)

     $6,000

Less: $1,813 or 3% of line 236 for Ross (whichever is less)

 –  $   240

Sub total

 =  $5,760

Total allowable medical expenses for Ross (maximum $5,000)

     $5,000

Dan has to complete Schedule 5 and claim $6,820 ($1,820 for Marc and $5,000 for Ross) at line 331.

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, which should be made payable to the Receiver General, send it, along with a note asking that we apply it to this account, to: Place du Portage, Phase III, 11 Laurier Street, Gatineau QC K1A 0S5.

Receipts - If you are filing a paper return, include your Schedule 9, as well as your official receipts showing either your or your spouse or common-law partner's name. You do not have to attach receipts for amounts shown in box 46 of your T4 or T4A slips, in box 48 of your T3 slips, in box 34 of your T5013 slips, or on financial statements showing an amount a partnership allocated to you. You may have included with a previous return a receipt for a donation you are claiming for 2004. If so, attach a note indicating the return with which you submitted the receipt.

If you are filing electronically, keep all of your documents in case we ask to see them.

We will not accept as proof of payment cancelled cheques, credit card slips, pledge forms, or stubs. If you need more details, get Interpretation Bulletin IT-110, Gifts and Official Donation Receipts .

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

Add up all of the eligible amounts of your donations made in 2004 plus any donations made in any of the previous five years that have not been claimed before. This includes unclaimed gifts to Canada, a province, or a territory made after 1998. However, if the gift was agreed to in writing before February 19, 1997, include it on line 342 of Schedule 9.

Under proposed legislation, the eligible amount is the amount of your donation or gift in excess of any advantage that you received or will receive for making the donation or gift. An advantage includes the value of certain property, service, compensation, or other benefit. This proposed change applies to any donations or gifts made after December 20, 2002. For details, see pamphlet P113, Gifts and Income Tax.

Generally, you can claim on line 340 all or part of this amount, up to the limit of 75% of your net income (line 236). 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 2004, the donations you made in 2004. It may be more beneficial for you not to claim them for 2004, but to carry them forward and claim them on your return for any of the next five years. No matter how you claim them, you can claim them only once.

Qualified donees

Generally, you can claim only amounts you gave to registered charities and other qualified donees. For a list of the types of donees that qualify, get pamphlet P113, Gifts and Income Tax , or use Info-Tax, one of our T.I.P.S. services.

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 2004 and carry forward any unused part for up to five years. For information about the kinds of property to claim, see pamphlet P113, Gifts and Income Tax .

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