ARCHIVED - Step 5 - Non-refundable tax credits

Non-refundable tax credits reduce the amount of income tax you owe. They are called non-refundable because, if the total of these credits is more than the amount you owe, you will not get a refund for the difference.

The information at lines 300 to 306 explains, in general, how to claim personal amounts.

Newcomers to Canada and emigrants - If you immigrated to Canada or emigrated from Canada in 1995, you may have to reduce your claim for personal amounts (lines 300 to 306). For details, get either the pamphlet called Newcomers to Canada or the pamphlet called Emigrants and Income Tax. Be sure to enter the date of your move in the Identification area of your return.

Amounts for non-resident dependants (lines 303 and 306) -You may be able to claim a personal amount for certain dependants who live outside Canada, if they were dependent on you for support. You may be able to make this claim for your spouse (line 303), or for your or your spouse's children and grandchildren who were born in 1977 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 1995.

If your spouse, or your or your spouse's children or grandchildren 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.

How to claim

• Follow the instructions at lines 303 and 306 to calculate your spousal amount, and amounts for infirm dependants age 18 or older.
• Attach proof of your support payments to your return. 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 the basic personal amount of $6,456.

Line 301 - Age amount

If you were 65 or older on December 31, 1995, and your net income (line 236 of your return) is less than $49,134, you may be entitled to claim an age amount up to a maximum of $3,482. However, you cannot make this claim if your net income is $49,134 or more.

If your net income is $25,921 or less, enter $3,482 on line 301.

If your net income is more than $25,921 but less than $49,134, use the chart that follows to calculate your claim:

Date of birth - Be sure to enter your date of birth in the Identification area (Step 1) of your return.

Tax Tip

If you do not need all of your age amount to reduce your federal income tax to zero, you can transfer any unused amount to your spouse. See line 326 for details.

You may be able to claim all or part of your spouse's age amount. See line 326 for details.

Line 303 - Spousal amount

If you supported your spouse (see the definition of spouse on page 8) in 1995, you may be able to claim part or all of the $5,380 spousal amount.

Calculate your claim on line 303 of your return. If your spouse had a net income of $5,918 or more, you cannot claim a spousal amount.

Net income of spouse

Net income is the amount from line 236 of your spouse's return, or the amount it would be if your spouse completed a return.

• If you were living with your spouse on December 31, 1995, you have to use your spouse's net income for the whole year. This applies even if you got married in 1995, or if you separated and got back together in 1995.
• If you separated in 1995 because of a breakdown in your relationship, and were not back together on December 31, 1995 (for a common-law spouse, you have to be separated for a period of 90 days or more), you only have to reduce your claim by your spouse's net income before the separation. If you also made alimony or maintenance payments to your spouse or former spouse, get the pamphlet calledAlimony or Maintenance. It contains the information you will need to prepare your return correctly.

Tax Tip

If you cannot claim the spousal amount, or if you have to reduce your claim because of dividends your spouse received from taxable Canadian corporations, you may be able to reduce your tax if you report all of your spouse's dividends. See line 120 for details.

Line 305 - Equivalent-to-spouse amount

You may be able to claim all or part of the $5,380 equivalent-to-spouse amount if, at any time in the year, you were single, divorced, separated, or widowed and, at that time, you supported a dependant who was:

• under 18 (unless the dependant is your parent or grandparent, or was mentally or physically infirm);
• related to you by blood, marriage, or adoption;
• living with you in a home that you maintained; and
• residing in Canada (if the dependant is your child, the child does not have to reside in Canada).

We consider a dependant who was away from home while attending school to have lived with you if the dependant lived with you when not in school.

You cannot claim an equivalent-to-spouse amount:

• if you are claiming a spousal amount (see line 303);
• if you have a spouse, as defined on page 8, throughout 1995 (if you were separated but you reconciled during 1995, for the purposes of this claim, we consider you to have a spouse throughout 1995);
• for your common-law spouse (however, you may be able to claim the spousal amount on line 303);
• if someone else in your household is making this claim (each household is allowed only one claim for the equivalent-to-spouse amount); or
• for your child if you are entitled to deduct payments you made for that child's support. However, if this is the first year you are entitled to deduct such payments, there are special rules that apply. For details, get the pamphlet called Alimony or Maintenance.

How to claim

• Calculate your dependant's net income. Net income is the amount from line 236 of your dependant's return, or the amount it would be if your dependant completed a return.
• Complete Schedule 5 to calculate your claim, and attach it to your return.

Note

You cannot split this amount with another person. Also, once you claim this amount for a dependant:

• no one else can claim this amount for that dependant; and
• neither you nor anyone else can claim an amount at line 306, "Amounts for infirm dependants age 18 or older," for that dependant.

Line 306 - Amounts for infirm dependants age 18 or older

You can claim an amount for your or your spouse's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1977 or earlier.

You can also claim an amount for a person who was resident in Canada at any time in the year and meets all of the following conditions. The person must have been:

• mentally or physically infirm;
• born in 1977 or earlier;
• dependent on you, or on you and others; and
• your or your spouse's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew.

If you are entitled to deduct payments you made for your child's support, you cannot claim an amount at line 306, "Amounts for infirm dependants age 18 or older," for that child. However, if this is the first year you are entitled to deduct such payments, there are special rules that apply. For details, get the pamphlet called Alimony or Maintenance.

Note

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

How to claim

• Calculate the net income of each of your dependants. Net income is the amount from line 236 of your dependant's return, or the amount it would be if your dependant completed a return.
• Complete Schedule 6 and attach it to your return.
• You should have a signed statement from a doctor that gives the nature, commencement, and duration of the dependant's infirmity. Keep the signed statement in case we ask to see it.

Claims made by more than one person - If you and another person support the same dependant, you can each make a claim for that dependant. However, the combined claim that you and the other person make cannot be more than the maximum amount allowed for that dependant.

Tax Tip

You may be able to claim any unused part of your dependant's disability amount on your return. See line 318 for details.

Line 308 - Canada or Quebec Pension Plan contributions through employment

Enter the total of the amounts, in dollars and cents, shown in boxes 16 and 17 of your T4 slips. Do not enter more than $850.50.

If you contributed more than $850.50, enter the excess amount on line 448 of your return. We will refund the excess amount to you or use it to reduce your balance owing. If you are a resident of Quebec, there is no line 448 on your return. You have to claim the excess amount on your Quebec provincial return.

In some cases, you may have an overpayment, even if you contributed less than $850.50. For example, if during 1995 you turned 18 or 70, or you received a Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) retirement or disability pension, we will prorate your contributions. We will calculate your overpayment and show it on your Notice of Assessment. If you would like to calculate your CPP overpayment, get Form T2204, Calculation of Employee Overpayment of 1995 Canada Pension Plan Contributions and 1995 Unemployment Insurance Premiums.

Employment in Quebec - If you contributed to the QPP in 1995 but lived outside Quebec on December 31, 1995, treat the amount as if you contributed it to the CPP. Attach to your return a copy of the Relevé 1 slip that your employer sent to you.

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 shown in box 16 of your T4 slip, you may be able to contribute to CPP on this income. See the heading "Making additional CPP contributions" that follows for details.

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 allowed. This can happen in any of the following situations:

• You had more than one employer in the same year.
• You had income, such as tips, from which your employer did not have to withhold contributions.
• You were in a type of employment that was not covered under CPP rules (such as casual employment).

To make more CPP contributions for 1995, complete Form CPT20, Election to Pay Canada Pension Plan Contributions, and attach it to your return. This form lists the eligible employment income on which you can make more CPP contributions. If you have not contributed the maximum of $850.50, you can contribute 5.4% on any part of this income. This may increase the pension you receive later.

Complete Schedule 8 to calculate your additional CPP contributions. The 1995 income limit on which you can contribute to CPP is $34,900. Enter on lines 310 and 421 the CPP contributions to be paid.

You can get Form CPT20 from us. You have to send us this form before May 1, 1997.

Making optional QPP contributions

If you are making optional QPP contributions for certain employment income, enter on line 310 the optional contributions you made on your provincial income tax return. Also, attach a completed Schedule 8 to show how you calculated the amount.

Line 310 - Canada or Quebec Pension Plan contributions payable on self-employment and other earnings

You can claim an amount for the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions that you have to make on self-employment earnings and on limited or non-active partnership income.

If you were a member of a partnership, make sure you include only your share of the net profit or loss.

If you have both wages and self-employment earnings, the amount of CPP or QPP contributions that you have to make on your self-employment earnings will depend on how much you have already contributed as an employee to the CPP or QPP. You cannot use your net business losses to reduce the CPP or QPP contributions that you paid on your employment earnings.

How to calculate your contributions

Complete Schedule 8 to calculate your CPP or QPP contributions payable, and attach it to your return.

If you were not a resident of Quebec, use the amounts from lines 135 to 143 and line 122 of your return. Enter the required contributions in dollars and cents on line 310 and line 421.

If you were a resident of Quebec, use the amounts from line 134, lines 156 to 160, and line 171 of your Quebec provincial return. Enter the amount of the contributions in dollars and cents on line 310.

Note

In some situations, we will prorate your CPP or QPP contributions; for example, if during 1995 you turned 18 or 70, or you received a CPP or QPP retirement or disability pension. If this applies to you, we will calculate the correct amount and show it on yourNotice of Assessment.

Line 312 - Unemployment Insurance premiums

Enter the total, in dollars and cents, of the amounts shown in box 18 of all your T4 slips and T4F slips, up to the following limits:

• $1,271.40 for a 52-week pay period based on insurable earnings of up to $42,380;
• $1,295.85 for a 53-week pay period based on insurable earnings of $43,195; or
• $1,320.30 for 27 bi-weekly pay periods based on insurable earnings of $44,010.

Your insurable earnings are shown in box 24 of your T4 slip (or box 14, if box 24 is blank) or box 16 of your T4F slip. If you contributed more than the limit that applies to you, enter the excess amount on line 450. We will refund this excess amount to you or use it to reduce your balance owing.

In some cases, you may have overpaid your Unemployment Insurance premiums even if you contributed less than the maximum. If so, we will calculate your overpayment and show it on your Notice of Assessment. If you would like to calculate your overpayment, get Form T2204, Calculation of Employee Overpayment of 1995 Canada Pension Plan Contributions and 1995 Unemployment Insurance Premiums.

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 on the correct lines of your return.

Pension or annuity income that you are not required to report on line 115 or line 129 of your return is not eligible for the pension income amount. Some of these amounts are: Old Age Security benefits, Canada Pension Plan benefits, Quebec Pension Plan benefits, Saskatchewan Pension Plan payments, death benefits, and retiring allowances.

Use the chart below to calculate your allowable claim.

Tax Tip

If you do not need all of your pension income amount to reduce your federal income tax to zero, you can transfer any unused amount to your spouse. If your spouse had eligible pension income, you may be able to transfer your spouse's unused pension income amount to your own return. For details, see line 326.

Line 316 - Disability amount

You may be able to claim a disability amount of $4,233 if:

• you had a severe mental or physical impairment in 1995, which caused you to be markedly restricted in your basic activities of daily living; and
• your impairment was prolonged; that is, your impairment has lasted, or is expected to last, for a continuous period of at least 12 months.

You may be markedly restricted in your basic activities of daily living if:

• you are blind; or
• you are unable to feed and dress yourself, eliminate (e.g., control bowel and bladder functions), walk, speak, hear, or perceive, think, and remember. You may also be markedly restricted if it takes you an extremely long time to perform any of these activities.

To qualify for the disability amount, your ability to perform an activity of daily living has to be markedly restricted all or almost all of the time, even with therapy and the use of appropriate aids and medication. If you are markedly restricted occasionally or part of the time, you are not entitled to this tax credit.

Note

If you receive a disability benefit, it does not necessarily mean that you are eligible to claim this credit.

If you or any other person claims medical expenses (line 330) for a full-time attendant that are more than $5,000 ($10,000 in the year of death), or for care in a nursing home because of your mental or physical impairment, you cannot claim the disability amount. You can claim your expenses or the disability amount, whichever is more favourable, but not both.

Tax Tip

If you meet certain conditions, you can claim both the disability amount (line 316), and either expenses for attendant care that allowed you to earn income (line 215), or expenses for part-time or full-time attendant care provided in Canada that are not more than $5,000 ($10,000 in the year of death) as a medical expense (line 330). See the explanations at these lines for details.

How to claim

• If you are claiming this amount for the first time, you have to submit a properly completed and certified Form T2201, Disability Tax Credit Certificate.
• If you were allowed the disability amount in 1994 and your condition did not change in 1995, you can claim the disability amount in 1995 without sending us another Form T2201. However, you have to send us one if the period stated on the certificate ended before 1995.

You can get Form T2201 from us. We will accept a photocopy of your Form T2201. However, your doctor's or optometrist's signature has to be an original, not a photocopy.

For more information, get a copy of the pamphlet called Tax Information for People with Disabilities. The pamphlet contains Form T2201.

Tax Tip

You may not need all of your disability amount to reduce your federal income tax to zero. If someone other than your spouse supports you, that person may be able to claim the unused part of your disability amount on line 318. If you have a spouse, your spouse can claim the unused part of your disability amount on line 326.

Line 318 - Disability amount transferred from a dependant other than your spouse

If you have a dependant who is entitled to claim a disability amount (see line 316), you may be able to claim all or a part of your dependant's disability amount. You can claim the unused part of the disability amount for a dependant who lived in Canada at any time in 1995, if:

• you claimed an equivalent-to-spouse amount on line 305 for that dependant;
• the dependant was your or your spouse's child, grandchild, parent, or grandparent, and you could have claimed an equivalent-to-spouse amount on line 305 for that dependant if you did not have a spouse and if the dependant did not have any income;
• the dependant was your or your spouse's child or grandchild, and you made a claim on line 306, "Amounts for infirm dependants age 18 or older," for that dependant;
• the dependant was your or your spouse's child or grandchild, and you could have made a claim on line 306, "Amounts for infirm dependants age 18 or older," for that dependant if that dependant had no income and was 18 years of age or older in 1995; or
• the dependant was your or your spouse's parent or grandparent, and you could have made a claim on line 306, "Amounts for infirm dependants age 18 or older," for that dependant if that person had no income.

If you are entitled to deduct payments you made for your child's support, you cannot claim a disability amount for your child. There is an exception if this is the first year you are entitled to deduct such payments. For details, get the pamphlet called Alimony or Maintenance.

If you or anyone else claims medical expenses for a full-time attendant that are more than $5,000 ($10,000 in the year of death), or for care in a nursing home because of your dependant's mental or physical impairment, you cannot claim the disability amount. You can claim the expenses or the disability amount, whichever is more favourable, but not both. However, you may be able to claim both the disability amount and medical expenses for part-time or full-time attendant care provided in Canada that are not more than $5,000 ($10,000 in the year of death). See line 330 for details.

How to claim

• Use the chart in this section to calculate how much of each dependant's disability amount you can claim.
• Attach to your return your dependant's Form T2201, Disability Tax Credit Certificate. If you were allowed a disability amount in a previous taxation year and the dependant's condition has not changed, you can claim the disability amount in 1995 without sending us another Form T2201. However, you have to send us a new form if the period stated on the certificate ended before 1995.

If more than one person is making a claim for the same dependant, attach a note to your return including the name and social insurance number of anyone else making a claim. The total amount claimed for that dependant cannot be more than the amount on line 5 or $4,233, whichever is less.

This credit is only available to a supporting person if the spouse of the person with a disability is not already claiming the disability tax credit or any other non-refundable tax credit (other than medical expenses) for the person with a disability.

Line 320 - Tuition fees

You can claim, on your 1995 return, the tuition fees paid for courses you took from January 1 to December 31, 1995. You cannot claim other expenses, such as books, or board and lodging.

To qualify, the total tuition fees you paid for the year to any one educational institution had to be more than $100. You can claim tuition fees paid to:

• a university, college, or other educational institution in Canada, if they were for a course at the post-secondary school level;
• an institution certified by the Minister of Human Resources Development, if you were 16 or older on December 31, 1995, and the fees were for a course that developed or improved your skills in an occupation;
• a university outside Canada, if you were enrolled full-time in a course that was at least 13 consecutive weeks long and that would lead to a degree; or
• a university, college, or other educational institution in the United States that gives courses at a post-secondary school level, if you lived near the border in Canada throughout the year and commuted to the school.

If your employer or your parent's employer paid your tuition fees, you can only claim them if the amount paid is included in your income or your parent's income. If your tuition fees are paid by a federal or provincial job training program, and no related amount is included in your income, the fees do not qualify for this credit.

Tax Tip

You have to claim your tuition fees first, even if someone else paid them. However, you may not need all of your tuition fees to reduce your federal income tax to zero. To determine if you can transfer all or part of your tuition fees to your or your spouse's parent or grandparent, or to your spouse, see lines 324 and 326.

How to claim

If you are claiming tuition fees paid to an institution in Canada, you must have either an official tax receipt or Form T2202A.

If you are claiming tuition fees paid to an educational institution outside Canada, you must have your educational institution complete Form TL11A (for a university outside Canada) or Form TL11C (for commuters to the U.S.).

If you are claiming tuition fees paid to a flying school or club in Canada, you must have your school or club complete Form TL11B.

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

Receipts - Do not include your receipts or forms with your return. However, you have to keep them in case we ask to see them.

Line 322 - Education amount

You can claim an education amount of $80 for each whole or part month in 1995 that you were enrolled in a qualifying educational program. In most cases, you have to be enrolled as a full-time student. You must have a Form T2202 or T2202A, completed by your educational institution, that confirms the period you were enrolled in a qualifying program.

Part-time students

If you are enrolled in a qualifying program but can only attend part-time because of a mental or physical impairment, you can claim an education amount. You have to complete Form T2202 to make your claim as a part-time student.

How to claim

• Multiply the number of months shown on your Form T2202 or T2202A (maximum 12) by $80.
• Enter your claim on line 322 of your return.

You cannot claim the education amount for a program if you:

• received an allowance for that program (such as a training allowance under the Unemployment Insurance Act or National Training Act);
• received a benefit for that program (such as free board and lodgings from a nursing school);
• received a grant for that program;
• were reimbursed for the cost of your courses, other than by award money you received; or
• were receiving salary or wages while taking a job-related course.

Note

An allowance, benefit, grant, or reimbursement does not include any scholarship, fellowship, bursary, or prize you received, or any benefit you received under the Canada Student Financial Assistance Act, or Student Loans and Scholarships Act of the Province of Quebec.

Receipts - Do not include your form with your return. However, you have to keep it in case we ask to see it.

Tax Tip

You may not need all of your education amount to reduce your federal income tax to zero. If you do not, and certain other conditions are met, you may be able to transfer all or part of your education amount to your or your spouse's parent or grandparent, or to your spouse. See lines 324 and 326 for details.

Line 324 - Tuition fees and education amount transferred from a child

Students who do not need to claim all of their eligible tuition fees (line 320) or their education amount (line 322) may be able to transfer the unused part to you if you are the parent or grandparent of that student or of that student's spouse. However, if the total of the tuition fees and education amount that a student needs to claim on his or her return is $4,000 or more, you are not entitled to claim a transfer from that particular student.

How to claim

The student has to use Form T2202 or the back of Form T2202A to calculate the transfer amount and to designate you as the parent or grandparent. If the tuition fees being transferred to you are not shown on the Form T2202 or T2202A, you should have a copy of the student's official tuition fees receipt.

Student with a spouse - If a student's spouse claims the spousal amount (line 303) or the amounts transferred from the spouse (line 326), you cannot claim the tuition fees and education amount transfer. However, the student's spouse can claim the transfer on Schedule 2.

Student claimed as a dependant - If another parent or grandparent claims the student as a dependant (lines 305 or 306), only that person can claim the tuition fees and education amount transferred from the student.

Student not claimed as a dependant - The student has to choose the parent or grandparent who can claim the tuition fees and education amount transfer. Only one person can claim the transfer from the student.

Receipts - Do not include Form T2202, Form T2202A, or the student's official tuition fees receipt with your return. However, you have to keep them in case we ask to see them.

Line 326 - Amounts transferred from your spouse

You can transfer from your spouse (see definition of spouse on page 8) any of the following amounts that your spouse does not need to reduce his or her federal income tax to zero:

• the age amount (if your spouse was 65 or older);
• the pension income amount;
• the disability amount; and
• tuition fees and the education amount.

Use Schedule 2 to calculate your claim and attach a completed copy to your return. Be sure to show your marital status, and your spouse's name and social insurance number in the Identification area on page 1 of your return.

Receipts - Attach to your return your spouse's Form T2201, Disability Tax Credit Certificate. If you were allowed a disability amount in a previous taxation year and your spouse's condition has not changed, you can claim the disability amount without sending us another Form T2201. However, you have to send us a new form if the period stated on the certificate ended before 1995.

Do not include your spouse's receipts or forms for tuition fees or the education amount with your return. However, you have to keep them in case we ask to see them.

Note

You cannot transfer any unused amounts from your spouse if you were separated because of a breakdown in your relationship at the end of the year, and for a period of 90 days or more that included December 31, 1995.

Line 330 - Medical expenses

You can claim medical expenses that were paid for:

• yourself;
• your spouse;
• your or your spouse's children or grandchildren who were dependent on you for support; and
• your or your spouse's parent, grandparent, brother, sister, uncle, aunt, niece, or nephew who lived in Canada and who were dependent on you for support.

Note

If you claim medical expenses for a dependant, other than your spouse, whose net income is more than $6,456, see line 331 for more details.

You can claim medical expenses that were paid in any 12-month period ending in 1995 and were not claimed in 1994.

Your total expenses have to be more than either 3% of your net income (line 236) or $1,614, whichever is less.

How to claim

Calculate your allowable medical expenses as follows:

• Decide the 12-month period ending in 1995 for which you will claim the medical expenses (you cannot include any expenses that were deducted on your 1994 return).
• Total your allowable medical expenses, and enter the total on line 330.
• Attach your receipts to your return.

Allowable medical expenses

The following are some examples of medical expenses you can claim:

• payments to a doctor, dentist, or nurse, or to a public or licensed private hospital;
• payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses, contact lenses, dentures, pacemakers, and prescription drugs;
• payments for certain prescription medical devices;
• expenses for modifying your home to allow you or a person for whom you can claim medical expenses to be mobile and functional, if you or the person has a mobility impairment, or lacks normal physical development;
• expenses for guide and hearing-ear dogs;
• premiums paid to private health services plans (do not send us the receipts);
• the cost of visual or vibratory signalling devices to help people with a hearing impairment (for example, a visual fire alarm); and
• payments for rehabilitative therapy to help people adjust to a speech or hearing loss, including training in lip-reading and sign language.

Reimbursements - You cannot claim medical or dental expenses for which you have been or will be reimbursed. However, you can claim 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

Daniel was in the hospital while on vacation in Mexico. He paid $2,800 in Canadian dollars for allowable medical expenses (allowable medical expenses are not limited to those paid in Canada). He was reimbursed for $1,500 of these expenses by his provincial health care plan. He did not include the reimbursement in income. Therefore, Daniel can claim the remaining $1,300.

Travelling expenses - If medical treatment is not available locally, you may be able to claim the cost of travelling to get the treatment somewhere else. Attach to your return your receipts and a statement listing your travelling expenses.

Expenses for an attendant or for full-time care in a nursing home

You may be able to claim either:

• amounts paid for a full-time attendant, provided the expenses were paid to a person who is not your spouse and is 18 years of age or older, or for full-time care in a nursing home (a doctor has to certify by letter or signing a valid Form T2201,Disability Tax Credit Certificate, that the person receiving such care had a severe mental or physical impairment in 1995); or
• amounts paid for part-time or full-time attendant care provided in Canada that are not more than $5,000 ($10,000 in the year of death). You can claim these expenses if the patient is entitled to claim the disability amount (line 316), and the expenses were paid to a person 18 years of age or older who is not your spouse. However, if you made a claim for either attendant care expenses on line 215 or child care expenses on line 214 for that patient, you cannot make this claim.

Note

If you claim expenses paid for a full-time attendant that are more than $5,000 ($10,000 in the year of death), or for full-time care in a nursing home, neither you nor anyone else can claim a disability amount for the disabled person. You can claim the more favourable amount, but not both. Compare with line 316 to decide which claim is better.

Tax Tip

If you meet certain conditions, you can claim the disability amount (line 316), and either expenses for attendant care that allowed you to earn income (line 215), or expenses for part-time or full-time attendant care provided in Canada that are not more than $5,000 ($10,000 in the year of death) as a medical expense (line 330). See the explanations at these lines for details.

For more information on medical expenses, get Interpretation Bulletin IT-519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.

Line 331 - Medical expenses adjustment

If you claimed medical expenses for a dependant whose net income was more than $6,456, you have to reduce your medical expenses. To calculate your adjustment, complete the chart on page 33. This does not apply to medical expenses you are claiming for your spouse.

Tax Tip

If the medical expenses adjustment you calculate for a dependant is more than the medical expenses you claimed for that dependant, it is not to your benefit to claim the medical expenses for that dependant.

Line 335

You do not have to complete the rest of Step 5 if the amount on line 335 is the same as, or more than, the amount on line 260, and is less than $29,591. If this is the case, go to Step 6, enter "0" on line 406, and complete the rest of your return.

In any other case, see line 338.

Line 338

To calculate your non-refundable tax credits, multiply the amount on line 335 by 17%. If you are not claiming charitable donations or cultural, ecological, and government.gifts, transfer your credits from line 338 to line 350 and go to Step 6.

Line 340 - Charitable donations

You can claim the lower of:

• the total donations made in 1995 plus any donations made in any of the previous five years that you did not claim before; and
• 20% of your net income (line 236).

Tax Tip

You can claim donations that your spouse made as long as your spouse will not claim them.

You can claim a tax credit of 17% of your donations up to and including $200, and 29% of your donations that are more than $200.

To qualify, the donations have to be made to:

• Canadian registered charities;
• registered Canadian amateur athletic associations;
• prescribed universities outside Canada;
• Canadian non-profit organizations that only provide low-cost housing for seniors;
• Canadian municipalities;
• registered national arts service organizations;
• the United Nations (or its Specialized Agencies); or
• charities outside Canada to which the Government of Canada has made a donation in 1994 or 1995.

Note

If you are a member of a religious order and you have taken a vow of perpetual poverty, claim your deduction on line 256 of your return.

Receipts

Attach to your return official receipts for all donations you are claiming, except for those shown in box 46 of your T4 or T4A slip, box 36 of your T3 slip, box 34 of your T5013 slip, or those allocated to you by a partnership in its financial statements. If you included such receipts with a previous return, please attach a note to tell us in which return this was.

We will not accept as proof of payment cancelled cheques, photocopies (unless the issuer certifies them to be true copies), credit card slips, pledge forms, or stubs.

Donations other than cash

You may be able to claim donations other than cash. For details, get the pamphlet called Gifts and Income Tax. If you donated land, see line 342 for more details.

Donations to U.S. charities

You can claim donations to U.S. charities that would be allowed on a U.S. return as long as they are not more than 20% of your net U.S. income, which you report on your Canadian return. However, you can use the limit of 20% of the net income on your Canadian return (line 236) if you lived near the border in Canada throughout the year and commuted to your workplace or business in the U.S. You can only use this limit if your main source of income for the year is from that employment or business.

Carrying forward donations

You do not have to claim the charitable donations you made in 1995 on your 1995 return. You can carry them forward and claim them for up to five years, as long as you only claim them once.

If you need more details on charitable donations, get Interpretation Bulletin IT-110, Deductible.Gifts and Official Donation Receipts, and its Special Release.

Line 342 - Cultural, ecological, and government gifts

Enter on line 342 the amount of your gift to Canada, a province, or territory. Attach your receipt to your return (unless the amount is shown on a T5013 slip or is allocated to you by a partnership in its financial statements). You have to report any capital gain or loss on the property (other than cultural property) that you donated to Canada, a province, or territory. See the income tax guide called Capital Gains for details.

You can include the amount of your gift to a designated institution for property that the Canadian Cultural Property Export Review Board has certified. Attach to your return both the official receipt and Form T871, Cultural Property Income Tax Certificate.

Under proposed legislation, you can claim the amount of your gift of land, donated after February 27, 1995, to a Canadian municipality, or a registered charity that the Minister of the Environment has designated. The land must be certified by that Minister to be important to the preservation of Canada's environmental heritage. Attach to your return both the official receipt and the certificate called, Certificate for Donation of Ecologically Sensitive Land, issued by the Minister of the Environment. You may have to report any capital gain or loss on the property that you donated. For details, see the income tax guide called Capital Gains.

Unlike other donations, your claim for these types of donations is not limited to 20% of your net income. You can choose the part of your donations you want to claim in the year and you can carry forward any unused part for up to five years.

If you need more information, get the pamphlet called Gifts and Income Tax.

Note

If you make a monetary gift to Canada, you can choose to apply it to the Debt Servicing and Reduction Account. Make your gift out to the Receiver General for Canada and mail it to: Place du Portage, Phase 3, 11 Laurier Street, Hull QC K1A 0S5. Public Works and Government Services Canada will provide you with a receipt. Be sure to include a note saying that you want your gift applied to this account. All such gifts will only be used to service the public debt.

Lines 346 and 348 - Charitable donations credit

To calculate your credit, follow the instructions in Step 5 of your return (lines 344 to 348).