Non-refundable tax credits

Non-refundable tax credits reduce the amount of income tax you owe. However, 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. For more details, get Interpretation Bulletin IT-513, Personal Tax Credits.

Newcomers to Canada and emigrants

If you immigrated to Canada or emigrated from Canada in 1997, 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 on page 1 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 depended 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 1979 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 1997.

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, 1997, and your net income (line 236 of your return) is:

• $25,921 or less, enter $3,482 on line 301;
• more than $25,921 but less than $49,134, use the chart that follows to calculate your claim; or
• $49,134 or more, you cannot claim an amount on line 301.

Age amount

Maximum claim				$	3,482.00 1
Your net income from line 236	$	________	2
Base amount	-	25,921.00	3
Line 2 minus line 3	$	________	4
	×	15%	5
Multiply line 4 by 15% and enter the result on this line				-	_______ 6
Line 1 minus line 6 (if negative, enter "0")			=	$	_______ 7

Enter the amount from line 7 on line 301 of your return.

Date of birth - Be sure to enter your date of birth in the Identification area on page 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 (as defined on page 10) in 1997, you may be able to claim a spousal amount. If your spouse's net income (see the next section) is:

• $538 or less, claim $5,380;
• more than $538, but less than $5,918, complete the calculation on line 303 of your return; or
• $5,918 or more, you cannot claim a spousal amount.

Net income of spouse

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

If you were living with your spouse on December 31, 1997, you have to use your spouse's net income for the whole year. This applies even if you got married in 1997, or if you separated and got back together in 1997.

If you separated in 1997 because of a breakdown in your relationship, and were not back together on December 31, 1997, you only have to reduce your claim by your spouse's net income before the separation. For a common-law spouse, you also have to be separated for at least 90 days. There are exceptions to these conditions if you were required to make support payments to your spouse or former spouse. Get the pamphlet called Support Payments for information you will need to prepare your return correctly.

Tax Tip
If you cannot claim the spousal amount (or 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 to whom all of the following applied. The dependant must have been:

• under 18, your parent or grandparent, or mentally or physically infirm;
• related to you by blood, marriage, or adoption;
• living with you in a home that you maintained; and
• living in Canada. If the dependant is your child, the 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 on page 7) living in another country with your child.

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.

You cannot claim an equivalent-to-spouse amount if any of the following applies:

• You are claiming a spousal amount (see line 303).
• The claim is for your common-law spouse. However, you may be able to claim the spousal amount on line 303.
• Someone else in your household is making this claim. Each household is allowed only one claim for the equivalent-to-spouse amount, even if there is more than one dependant in the household.
• The claim is for a child for whom you are able to deduct support payments, or for whom you are required to make non-deductible child support payments. However, if you separated in 1997, due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

Note
For 1997 and later years, if you were separated, but reconciled during the year, you can claim the equivalent-to-spouse amount if you otherwise qualify for it and do not claim the spousal amount (line 303) for the year.

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 that would be your dependant's net income 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. Once you claim this amount for a dependant both of the following apply:

• No one else can claim this amount or an amount on line 306, "Amounts for infirm dependants age 18 or older," for that dependant.
• If the dependant is infirm and age 18 or older, you may also be able to claim an amount on line 306 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 1979 or earlier.

Note
A child can include anyone who has become dependent on you, even if he or she is older than you.

You can also claim an amount for a person who meets all of the following conditions. The person must have been:

• your or your spouse's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• born in 1979 or earlier;
• mentally or physically infirm;
• dependent on you, or on you and others for support; and
• living in Canada at any time in the year.

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

If someone else is claiming an amount on line 305 for the same dependant, 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 may also be able to claim an amount on line 306 for that dependant.

If you can deduct support payments you made for your child, or you are required to make non-deductible child support payments for that child, you cannot claim an amount on line 306 for that child. However, if you separated in 1997 due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

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 that would be your dependant's net income if your dependant completed a return.
• Complete Schedule 6. Subtract the dependant's net income on line 2. Line 3 cannot be more than $2,353. If you are claiming an amount on line 305 for this dependant, subtract that claim on line 4.
• Attach Schedule 6 to your return. You should also have a signed statement from a doctor that gives the nature, commencement, and duration of the dependant's infirmity. Keep the statement in case we ask to see it.

The maximum amount you can claim is $2,353. In addition, the dependant's net income can be up to $4,103 without reducing the amount of your 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 combined claim that you and the other person make cannot be more than the maximum amount allowed for that dependant.

Tax Tip
If your dependant qualifies for the disability amount, you may be able to claim all or part of that amount. 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 or T4 Short slips. Do not enter more than the maximum of $969. If you contributed to the Canada Pension Plan (CPP) in 1997, and you contributed less than $969, you may have to pay a supplementary amount due to a rate increase for 1997. See line 309 for details. If you contributed only to the Quebec Pension Plan (QPP) in 1997, line 309 does not apply to you.

If you contributed more than $969, enter the excess amount on line 448 of your return. We will refund this amount to you, or use it to reduce your balance owing. However, if you lived in Quebec on December 31, 1997, and contributed more than $969, you claim the excess amount on your Quebec provincial return.

In some cases, you may have an overpayment, even if you contributed less than $969. For example, in 1997, you may have turned 18 or 70, or received a CPP or QPP retirement or disability pension. If so, we will prorate your contributions, 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 1997 Canada Pension Plan Contributions and 1997 Employment Insurance Premiums.

You may be able to make CPP contributions on certain employment income for which no contributions (or less than the maximum) were made. For more information, see "Making additional CPP contributions" on page 33.

Employment in Quebec - If you contributed to the QPP in 1997 but lived outside Quebec on December 31, 1997, treat the amount as if you contributed it to the CPP. Attach to your return the Relevé 1 slip 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 or T4 Short slip, you may be able to contribute to the CPP on this income. See line 310 for details.

Line 309 - Supplementary Canada Pension Plan(CPP) contribution payable

Individuals who earned more than $3,500 in employment income in 1997 can claim a credit for the supplementary CPP contribution they have to pay. This payment is required because the CPP contribution rate was increased to 3% part of the way through 1997.

This line does not apply to individuals who contributed only to the Quebec Pension Plan (QPP) in 1997, because the contribution rate for the QPP was 3% for all of 1997.

Complete the following chart to determine the amount you have to pay.

CPP contribution payable

Total of amounts in box 26 (or box 14 if box 26 is blank) of your T4 and T4 Short slips (maximum $35,800)			$	_______	1
Subtract basic exemption			-	3,500.00	2
Subtotal (if negative, enter "0")			$	_______	3
Multiply line 3 by 3% and enter the result on this line (maximum $969.00)			$	_______	4
Multiply line 3 by 2.925% and enter the result on this line (maximum $944.78)	$	_______	5
Total of amounts in boxes 16 and 17 of your T4 and T4 Short slips	$	_______	6
Enter the amount from line 5 or 6, whichever is more			-	_______	7
Line 4 minus line 7 (maximum $24.22) if negative, enter "0"			$	_______	8
If you do not have an amount in box 17 of any of your T4 or T4 Short slips, enter the amount from line 8 on lines 309 and 424 of your return.
If you have an amount in box 17 of any of your T4 or T4 Short slips:
Multiply the total of all amounts in box 16 only of your slips by 2.564% and enter the result on this line (maximum $24.22)			$	_______	9
Enter on lines 309 and 424 of your return the amount from either line 8 or line 9, whichever is less.

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 to the CPP or QPP as an employee. You cannot use your net business losses to reduce the CPP or QPP contributions that you paid on your employment earnings.

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 if any of the following applies. You:

• had more than one employer in 1997;
• had income, such as tips, from which your employer did not have to withhold contributions; or
• were in a type of employment that was not covered under CPP rules, such as casual employment.

To make more CPP contributions for 1997, get Form CPT20, Election to Pay Canada Pension Plan Contributions. Attach a completed copy to your return, or send Form CPT20 to us separately before May 1, 1999. This form lists the eligible employment income on which you can make more CPP contributions. If the total of the amounts on lines 308 and 309 is less than $969.00, you can contribute 6% on any part of the income on which you have not already made contributions. The 1997 income limit for which you can contribute to the CPP is $35,800. Making additional contributions may increase the pension you receive later.

Complete Schedule 8 to calculate your additional CPP contributions. Include them on lines 310 and 421.

Making optional QPP contributions

Include on line 310 any optional QPP contributions you made on your Quebec provincial income tax return, if you filed one. Also, attach a completed Schedule 8 to show how you calculated the amount.

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 on lines 135 to 143 and line 122 of your return. Enter on line 310 and line 421 the required contributions in dollars and cents.

If you were a resident of Quebec, use the amounts on line 134, lines 156 to 160, and line 173 of your Quebec provincial return. Enter on line 310 the amount of the contributions in dollars and cents.

Note
In 1997, you may have turned 18 or 70, or received a CPP or QPP retirement or disability pension. If so, we will prorate your CPP or QPP contributions. We will calculate the correct amount and show it on your Notice of Assessment.

Line 312 - Employment Insurance premiums

Enter the total, in dollars and cents, of the amounts shown in box 18 of all your T4, T4 Short, and T4F slips. Do not enter more than $1,131.

If you contributed more than $1,131, enter the excess amount on line 450 of your return. We will refund this amount to you, or use it to reduce your balance owing.

In some cases, you may have overpaid your Employment Insurance (EI) premiums even if you contributed less than $1,131. 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 1997 Canada Pension Plan Contributions and 1997 Employment Insurance Premiums.

For 1997, if the total of the EI insurable earnings shown in box 24 of all your T4 and T4 Short slips (or box 14 if box 24 is blank) and box 16 of your T4F slips is $2,000 or less, we will refund your total EI premiums to you or use the amount to reduce your balance owing. In this case, do not enter your total EI premiums on line 312. Instead, enter the amount on line 450.

If your total EI insurable earnings are more than $2,000 and less than $2,059, we will refund a part of your EI premiums to you or use the amount to reduce your balance owing. In this case, enter your total EI premiums on line 312. We will calculate your refund and show it on your Notice of Assessment. If you would like to calculate your refund yourself, get 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 on the correct lines of your return.

Note
Only pension or annuity income you report on lines 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, and retiring allowances do not qualify.

Use the chart on page 34 to calculate your claim.

Pension income amount
Amount from line 115 of your return			$	_______	1
Annuity payments from line 129 of your return (box 16 of your T4RSP slip) only if you were 65 or older on December 31, 1997, or you received the payments because of the death of your spouse			+	_______	2
Line 1 plus line 2			$	_______	3
Foreign pension income included on line 115 and deducted on line 256	$	_______	4
Income from a U.S. individual retirement account included on line 115	+	_______	5
Line 4 plus line 5			-	_______	6
Line 3 minus line 6			$	_______	7
Enter on line 314 of your return, $1,000 or the amount from line 7, whichever is less.

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.

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

Line 316 - Disability amount

You may be able to claim a disability amount of $4,233 if your doctor or optometrist certifies both of the following:

• You had a severe mental or physical impairment in 1997, which caused you to be markedly restricted in any of the basic activities of daily living.
• Your impairment was prolonged, which means it has lasted, or is expected to last, for a continuous period of at least 12 months.

Under proposed changes, an audiologist can make the above certification starting February 19, 1997, for a hearing impairment if the above two conditions apply.

You may be markedly restricted in a basic activity of daily living if either:

• you are blind; or
• you are unable to feed and dress yourself, 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, even with therapy and the use of appropriate aids and medication.

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. If you are markedly restricted occasionally or part of the time, you do not qualify for this tax credit.

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 credit.

Tax Tip
If you or anyone else paid for an attendant or for care in a nursing home or other establishment because of your impairment, it may be more beneficial to claim the amounts paid as medical expenses instead of the disability amount. In some circumstances, both amounts may be claimed. See "Care by an attendant, or care in a nursing home, school, institution, or other establishment" on page 38 for more information.

How to claim

• If you are making a new application for this amount, you have to submit a properly completed and certified Form T2201, Disability Tax Credit Certificate.
• If you were allowed the disability amount in 1996 and you still met the eligibility requirements in 1997, you can claim the disability amount in 1997 without sending us another Form T2201. However, you have to send us one if the period stated on the certificate ended in 1996 or earlier.

We will accept a photocopy of your Form T2201 only if the signature of your doctor, optometrist, or audiologist is an original, not a photocopy. For more information, get the guide called Information Concerning People with Disabilities. The guide also contains Form T2201.

If you are making a new application for this amount, we will now review your claim before we assess your return to determine whether you are eligible. Once we approve your claim, you will be able to claim this amount, as long as your circumstances do not change.

Tax Tip
If you do not need all of your disability amount to reduce your federal income tax to zero, you can transfer any unused amount to your spouse (see line 326) or another supporting person (see line 318).

You may be able to claim all or part of your spouse's (see line 326) or other dependant's (see line 318) disability amount.

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

If you have a dependant who can claim the disability amount (see line 316) you may be able to claim all or part of this amount. You can claim the unused part of the disability amount for your dependant who lived in Canada at any time in 1997 if any of the following applies:

• 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 he or she had no income and had been 18 years of age or older in 1997; 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 he or she had no income. In addition, the individual must have been dependent on you because of his or her mental or physical infirmity.

If you can deduct support payments you made for your child, or you are required to make non-deductible child support payments for that child, you cannot claim a disability amount for your child. However, if you separated in 1997 due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

Tax Tip
If you or anyone else paid for an attendant or for care in a nursing home or other establishment because of your dependant's impairment, it may be more beneficial to claim the amounts paid as medical expenses instead of the disability amount. In some circumstances, both amounts may be claimed. See "Care by an attendant, or care in a nursing home, school, institution, or other establishment" on page 38 for more information.

How to claim

• Use the chart on this page to calculate how much of each dependant's disability amount you can claim.
• Attach to your return a properly completed and certified Form T2201, Disability Tax Credit Certificate, for each dependant. If you were allowed a disability amount in a previous taxation year and the dependant still met the eligibility requirements in 1997, you can claim the disability amount in 1997 without sending us another Form T2201. However, you have to send us a new one if the period stated on the certificate ended in 1996 or earlier. If you are not attaching Form T2201 for a dependant, attach a note stating the dependant's name, social insurance number, and relationship to you.

Unused part of dependant's
disability amount

Dependant's disability amount	$	4,233.00	1
Total of amounts your dependant can claim on lines 300 to 314	+	_______	2
Line 1 plus line 2	$	_______	3
Dependant's taxable income (line 260)	-	_______	4
Line 3 minus line 4 (if negative, enter "0")	$	_______	5

Enter on line 318 of your return $4,233 or the amount from line 5, whichever is less.

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 claimed for that dependant cannot be more than the amount on line 5 or $4,233, whichever is less.

You can claim this credit only 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, and you supported that person.

Line 323 - Tuition and education amounts

You now claim your tuition and education amounts on this line. Complete Schedule 11, Tuition and Education Amounts, which includes lines 320 (Eligible tuition fees paid for 1997) and 322 (Education amount).

Eligible tuition fees

You can claim, on your 1997 return, the tuition fees paid for courses you took in 1997. 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 any of the following:

• 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, 1997, 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.

Under proposed changes, you can now claim fees, such as athletic and health services fees, paid in addition to your tuition for post-secondary courses. You can claim these fees if all full-time students had to pay them and you had a full-time course load, or if all part-time students had to pay them and you had a part-time course load. You cannot claim student association fees or the cost of goods of enduring value, such as equipment.

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.

Under proposed changes, if your fees are paid (or you are entitled to be reimbursed for them) under a federal program to assist athletes, you cannot claim the fees unless the payment or reimbursement has been included in your income.

Forms

• If you are claiming tuition fees paid to an institution in Canada, you must have either an official tax receipt or Form T2202A, Tuition and Education Amounts Certificate.
• If you are claiming tuition fees paid to an educational institution outside Canada, you must have your educational institution complete either Form TL11A, Tuition Fees Certificate - University Outside Canada, or Form TL11C, Tuition Fees Certificate - Commuters to the United States, whichever applies.
• 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, Tuition Fees Certificate - Flying School or Club.

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

Education amount

Under proposed changes, you can claim $150 for each whole or part month in 1997 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, Education Amount Certificate for Full-Time and Part-Time Students, or Form T2202A, Tuition and Education Amounts Certificate, completed by your educational institution, that confirms the period you were enrolled in a qualifying program.

You cannot claim the education amount for a program if any of the following applies. You:

• received an allowance for that program (such as a training allowance under the National Training Act (or a similar provincial program) or the Employment Insurance Act);
• received a benefit for that program (such as free board and lodging 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, Canada Student Loans Act, or An Act respecting financial assistance for students of the Province of Quebec.

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, Education Amount Certificate for Full-Time and Part-Time Students, to make your claim as a part-time student.

How to claim

Complete Schedule 11, Tuition and Education Amounts, to make your claim, and enter the result on line 323 of your return. You have to claim your tuition and education amounts first, even if someone else paid your fees.

Tax Tip
If you do not need all of your tuition and education amounts to reduce your federal income tax to zero, you may be able to transfer any unused amount to your spouse (see line 326) or to your or your spouse's parent or grandparent (see line 324).

You may be able to claim all or part of your spouse's (see line 326) or other dependant's (see line 324) tuition and education amounts.

Under proposed changes, if you do not need to use all of your tuition and education amounts (and you do not transfer them to your spouse or to your or your spouse's parent or grandparent) in the year, you can carry forward the unused part and claim it in a future year. However, if you carry forward an amount, you will not be able to transfer it to anyone in a later year. Complete Schedule 11 to calculate the carry-forward amount.

Tax Tip
If you are transferring an amount to another person, do not transfer more than the person needs to reduce his or her federal income tax to zero, so you can carry forward more of your amounts to use in a later year.

Receipts - Do not include your receipts or forms (other than Schedule 11) with your paper return. If you are using EFILE (see "Filing your return" on page 7) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 324 - Tuition and education amounts transferred from a child

A student who does not need to claim all of his or her tuition and education amounts (line 323) to reduce his or her federal income tax to zero may be able to transfer the unused part to you if you are a parent or grandparent of that student or of that student's spouse. The maximum amount that can be transferred by each student is $5,000 minus the amount the student needs, even if there is still an unused part.

How to claim

To calculate the transfer amount and to designate you as the parent or grandparent who can claim this amount, the student has to complete Form T2202, Education Amount Certificate for Full-Time and Part-Time Students, or Form T2202A, Tuition and Education Amounts Certificate. If the tuition fees being transferred to you are not shown on the student's 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 amounts on lines 303 or 326 for the student, you cannot claim the tuition and education amounts transfer. However, the student can designate that the spouse claim the transfer on line 326.

Student claimed as a dependant - A parent or grandparent who claims the student as a dependant on line 305 or 306 is the only person who can claim the tuition and education amounts transferred from the student.

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

Receipts - Do not include the student's forms or official tuition fees receipt with your paper return. If you are using EFILE (see "Filing your return" on page 7) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 326 - Amounts transferred from your spouse

Your spouse (as defined on page 10) can transfer to you any part of the following amounts that he or she qualifies for but does not need to reduce his or her federal income tax to zero:

• the age amount (line 301) if your spouse was 65 or older;
• the pension income amount (line 314);
• the disability amount (line 316); and
• the tuition and education amounts (line 323) as designated by the student (maximum $5,000).

Note
Your spouse 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, 1997.

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

Receipts - Attach to your return your spouse's Form T2201, Disability Tax Credit Certificate. If you were (or your spouse was) allowed a disability amount in a previous taxation year for your spouse's condition, and your spouse still met the eligibility requirements in 1997, you can claim the disability amount without sending us another Form T2201. However, you have to send us a new one if the period stated on the certificate ended in 1996 or earlier.

Do not include any receipts or forms (other than Schedule 2) for your spouse's tuition or education amounts with your paper return. If you are using EFILE (see "Filing your return" on page 7) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 330 - Medical expenses

You can claim medical expenses that were paid for any of the following persons:

• yourself;
• your spouse;
• your or your spouse's child or grandchild who was dependent on you for support; and
• your or your spouse's parent, grandparent, brother, sister, uncle, aunt, niece, or nephew who lived in Canada at any time in the year and was 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.

Under proposed changes, there is a new, refundable tax credit for working individuals with low incomes and high medical expenses. See line 452 for more details.

You can claim medical expenses paid in any 12-month period ending in 1997 and not claimed in 1996. Generally, you can claim all amounts paid, even if they were not paid in Canada.

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

Tax Tip
It may be better for the spouse with the lower income to claim the allowable medical expenses. Compare your credit with the credit your spouse would be allowed. You can make whichever claim you prefer.

Allowable medical expenses

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

• payments to a doctor, dentist, nurse, or public or licensed private hospital;
• payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, prescription drugs, and certain prescription medical devices;
• expenses for guide and hearing-ear dogs; and
• most premiums paid to private health services plans. Do not attach to your return the receipts for these premiums. However, you have to keep them in case we ask to see them.

Under proposed changes, you also can claim the following amounts:

• 20% of the cost of a van that has been adapted (or is adapted within 6 months of when you acquire it) to be able to transport an individual who uses a wheelchair, to a limit of $5,000;
• 50% of the cost of an air conditioner, prescribed by a medical practitioner for an individual with a severe chronic ailment, disease, or disorder, to a limit of $1,000;
• reasonable moving expenses (that have not been claimed on line 219 of anyone's return) to move an individual, who has a severe and prolonged mobility impairment or who lacks normal physical development, to housing that is more accessible to the individual or in which the individual is more mobile or functional, to a limit of $2,000;
• reasonable costs of altering the driveway of the primary residence of an individual with a severe and prolonged mobility impairment, to allow easier access to a bus; and
• sign language interpreter fees paid to a person in the business of providing such services, for an individual with a speech or hearing impairment.

For more examples of allowable medical expenses, call our T.I.P.S. (Info-Tax) service. See the T.I.P.S. information in the forms booklet.

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. Attach to your return your receipts and a statement listing your travel expenses.

Reimbursement of an allowable medical or dental expense - You cannot claim the part of an expense for which you have been or can 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
André 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, André can claim the full $2,800.

Care by an attendant, or care in a nursing home, school, institution, or other establishment

You may have paid for care by an attendant or care in an establishment for a person (including yourself) for whom you are claiming medical expenses. If so, you may be able to make one of the following claims:

• If the person has a letter from a doctor or other medical practitioner certifying the person's dependence on others for care due to long-term mental or physical infirmity, you can claim amounts paid for full-time care at home by an attendant who was not your spouse and was 18 years of age or older when the amounts were paid.
• If the person has a letter from a doctor or other medical practitioner certifying the person's dependence on others for care due to lack of normal mental capacity, you can claim amounts paid for full-time care in a nursing home.
• If the person has a letter from a doctor or other appropriately qualified individual certifying the person's need, due to a physical or mental handicap (including behavioural problems and learning disabilities) for the equipment, facilities, or personnel available in a nursing home, school, institution, or other establishment operated for persons with that handicap, you can claim amounts paid for full- or part-time care (including training) in that establishment.

Note
If the person qualifies for the disability amount (see line 316) Form T2201, Disability Tax Credit Certificate, can be used in place of a letter for any of the above claims.

Persons who qualify for the disability amount (line 316)

A doctor (or, for sight impairments, an optometrist) may certify that a person has a severe and prolonged mental or physical impairment that markedly restricts any of the person's basic activities of daily living.

Under proposed changes, an audiologist can make the above certification starting February 19, 1997, for a hearing impairment if the above conditions apply.

If the doctor, optometrist, or audiologist has properly completed a Form T2201, Disability Tax Credit Certificate, for the person, and the form has been submitted to us, you can make one of the following claims, but not both (compare them to determine which claim is better):

• You can claim amounts paid for the person for full-time care by an attendant who was not your spouse and was 18 years of age or older when the amounts were paid, or for full-time care in a nursing home. If anyone makes this claim for that person, neither you nor anyone else can claim the disability amount (line 316 or 318) for that person.

Under proposed changes, if you claim $10,000 ($20,000 in the year of death) or less that you paid for care by an attendant, you also can claim the disability amount for that person. See the next paragraph.

• You can claim amounts paid for the person for full- or part-time care by an attendant in Canada who was not your spouse and was 18 years of age or older when the amounts were paid.

Under proposed changes, you cannot claim as a medical expense more than $10,000 ($20,000 in the year of death) that you paid for part-time care by an attendant. However, you still can claim the disability amount.

Under proposed changes, if you do not claim amounts paid for child care expenses (line 214), attendant care expenses (line 215), or care in a nursing home, school, institution, or other establishment as a medical expense for the person, you can claim $10,000 ($20,000 in the year of death) or less that you paid for care by an attendant as a medical expense, and also claim the disability amount (line 316 or 318) for that person.

How to claim

Calculate your allowable medical expenses as follows:

• Choose the 12-month period ending in 1997 for which you will claim medical expenses. You cannot include any expenses you deducted on your 1996 return.
• Add up your allowable medical expenses for that period, and enter the total on line 330.
• Subtract $1,614 or 3% of your net income (line 236) whichever is less.

The following example explains how to calculate your claim.

Example
Carol's only dependant is her husband. She has reviewed their medical bills and decided that the 12-month period ending in 1997 for which she will claim expenses is July 1, 1996, through June 30, 1997. The total of their allowable expenses for that period is $1,842, which she enters on line 330.

Her net income on line 236 of her return is $32,000. She calculates 3% of that amount as $960. Because that amount is less than $1,614, she enters $960 on the line below line 330, and subtracts that amount from $1,842. The result is $882, which she enters on line 332.

Receipts - Attach your receipts to your paper return. Any receipts for attendant care paid to an individual should show the individual's name and social insurance number. If you are using EFILE (see "Filing your return" on page 7) show them to your EFILE service provider, and keep them in case we ask to see them.

For claims where it is required, also attach a properly completed and certified Form T2201, unless a disability amount was allowed for the person in a previous taxation year and the person still met the eligibility requirements in 1997.

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 (other than your spouse) whose net income was more than $6,456, you have to reduce your medical expenses.

To calculate your adjustment, subtract the basic personal amount ($6,456) from the dependant's net income (line 236 of his or her return) or the amount that would be the dependant's net income if he or she completed a return. Multiply the result by 4. Complete this calculation for each dependant for whom you claimed medical expenses. Add all the amounts together, and enter the total on line 331 of your return.

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

If the amount on line 335 equals, or is more than, the amount on line 260, and is less than $29,591, enter "0" on lines 420, 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 government, cultural, or ecological gifts, enter the amount from line 338 on line 350 and go to "Refund or Balance owing" on page 40.

Line 349 - Donations and gifts

Enter your claim for charitable donations and government, cultural, and ecological gifts from the calculation on Schedule 9, which includes lines 340 (Allowable charitable donations and government gifts) and 342 (Cultural and ecological gifts).

Allowable charitable donations and government gifts

Maximum you can claim

You can claim whichever of the following is less:

• You can claim the total donations made in 1997 of cash or other property (see the pamphlet called Gifts and Income Tax for details) plus any donations made in any of the previous five years that you did not claim before. Remember to report any capital gain or loss on the donated property, as well as any recapture of capital cost allowance that may apply.

Under proposed changes, the above amount includes gifts to Canada, a province, or a territory made in 1997 after February 18, 1997, other than those agreed to in writing before February 19, 1997. Include unclaimed gifts to Canada, a province, or a territory made before February 19, 1997, (or made in 1997 after February 18, 1997, if they were agreed to in writing before February 19, 1997,) with your claim for "Cultural and ecological gifts" (see page 40).

• Under proposed changes, you can claim 75% of your net income (line 236). If you donated capital property (including depreciable property) you may be able to increase your limit. For more information, see the pamphlet called Gifts and Income Tax.

For the year a person dies and the preceding year, this limit is 100% of the person's net income.

Tax Tip
You can claim donations that your spouse made as long as your spouse does not claim them.

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.

Qualified donees

Only amounts you gave to the following qualify:

• Canadian registered charities;
• registered Canadian amateur athletic associations;
• prescribed universities outside Canada;
• Canadian non-profit organizations that only provide low-cost housing for seniors;
• Canada or a Canadian province, territory, or municipality;
• 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 1996 or 1997.

Note
You may want to make a monetary gift directly to the federal Debt Servicing and Reduction Account. If so, make it payable to the Receiver General and send it to: Place du Portage, Phase III, 11 Laurier Street, Hull QC K1A 0S5. Include a note asking that we apply your gift to this account. Public Works and Government Services Canada will send you a tax receipt. All such gifts will only be used to service the public debt.

Donations of non-qualifying securities

Under proposed changes, if you made a charitable donation of a non-qualifying security, you may not be able to claim a credit for the donation. For details, get the pamphlet called Gifts and Income Tax.

Donations to U.S. charities

If you have U.S. income, you can claim any donations to U.S. charities that would be allowed on a U.S. return.

Under proposed changes, the limit on the donations you can claim has been increased to 75% of the net U.S. income you report on your Canadian return.

If you lived near the border in Canada throughout the year and commuted to a workplace or business in the U.S. which was your main source of income for the year, you can include your U.S. donations up to the same limits discussed under "Maximum you can claim" on page 39.

Carrying forward donations

You do not have to claim on your 1997 return the charitable donations you made in 1997. You can carry them forward for up to five years, as long as you only claim them once.

Cultural and ecological gifts

Enter the total of the following three amounts:

• unclaimed gifts to Canada, a province, or a territory made before February 19, 1997, or made in 1997 after February 18, 1997, if they were agreed to in writing before February 19, 1997;
• the value of cultural property, certified by the Canadian Cultural Property Export Review Board, that you gave to a designated institution in Canada. Attach to your return both the official receipt and Form T871, Cultural Property Income Tax Certificate, for each gift; and
• the value of land you donated after February 27, 1995, to Canada, a province or a Canadian municipality, or to a registered charity the Minister of the Environment has approved. The Minister of the Environment has to certify the land to be important to the preservation of Canada's environmental heritage. Attach to your paper return both the official receipt and the 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 property that you donated. For details, see the income tax guide called Capital Gains.

Under proposed changes, if you donated a restriction (servitude, easement, or covenant) in respect of such land, the amount of the donation will be either the fair market value (FMV) of the restriction, or the reduction of the land's FMV caused by the restriction, whichever is more.

Unlike other donations, your claim for these types of gifts is not limited to the percentage specified for charitable donations and government gifts. You can choose the part of your donations you want to claim in 1997, and you can carry forward any unused part for up to five years. For more information, get the pamphlet called Gifts and Income Tax.

How to claim

You can claim a federal tax credit of 17% of the first $200 of your donations and gifts, and 29% of the balance. A credit for these donations and gifts can also reduce your provincial or territorial tax, as well as any federal, provincial, or territorial surtaxes. Quebec residents claim provincial tax credits on their provincial returns.

Complete Schedule 9, Donations and Gifts, to make your claim. Enter the result on line 349.

Receipts - Attach to your paper return Schedule 9 and your official receipts, showing either your name or your spouse's name. You do not have to attach receipts for amounts shown in box 46 of your T4, T4 Short, or T4A slips, in box 36 of your T3 slips, in box 34 of your T5013 slips, or on financial statements showing an amount a partnership allocated to you. If you are using EFILE (see "Filing your return" on page 7) show your documents to your EFILE service provider, and keep them in case we ask to see them.

You may have included with a previous return a receipt for a donation you are claiming for 1997. If so, attach a note indicating with which return you submitted the receipt.

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. If you need more details on donations and gifts, get Interpretation Bulletin IT-110, Gifts and Official Donation Receipts.

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