ARCHIVED - General Income Tax and Benefit Guide - 2000

Net income

Line 206 - Pension adjustment

Enter on line 206 the total of all amounts in box 52 of your T4 slips, or box 34 of your T4A slips. Generally, this total represents the value of the benefits you earned in 2000 under a registered pension plan (RPP) or a deferred profit-sharing plan (DPSP).

Do not include the pension adjustment (PA) amount in your income, and do not deduct it on your return. Simply enter this amount on line 206. We will use it to calculate your registered retirement savings plan (RRSP) deduction limit for 2001, which we will show on your Notice of Assessment for 2000. See line 208 for details.

If you have any questions about how your PA was calculated, ask your employer.

Note
If you live in Canada and you participated in a foreign pension plan in 2000, you may have to enter an amount on this line. For details, contact us.

Line 207 - Registered pension plan (RPP) deduction

Generally, you can deduct the total of all amounts shown in box 20 of your T4 slips, in box 32 of your T4A slips, or on your union or RPP receipts. Contact us to find out how much you can deduct if any of the following applies:

• the total is more than $3,500 and your information slip shows a past-service amount for service before 1990;
• you contributed in a previous year and could not deduct part of the contributions; or
• you made contributions to a pension plan in a foreign country.

Receipts - With the exception of your T4 and T4A slips, do not include your receipts with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 208 - Registered retirement savings plan (RRSP) deduction

This section gives general information on RRSPs. If you need more information after reading this section, get the guide called RRSPs and Other Registered Plans for Retirement. For information about Schedule 7, see page 22.

Receipts - Attach to your paper return official receipts for all amounts you contributed from March 1, 2000, to March 1, 2001, including those you are not deducting on your return for 2000 and those you are designating as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments. See "Line 6 - Repayments under the HBP and LLP" for details about HBP and LLP repayments. If you contributed to your spouse's plan, the receipt has to show your name as the contributor and your spouse's name as the annuitant. Also attach Schedule 7 if you have to complete it. If you are using NETFILE (see page 9) keep your receipts in case we ask to see them.

Maximum contributions you can deduct

The maximum you can deduct on line 208 is whichever of the following amounts is less:

• the unused RRSP contributions shown on your Notice of Assessment or Notice of Reassessment for 1999 plus the total of your RRSP contributions made from March 1, 2000, to March 1, 2001 (not including amounts you designate as HBP or LLP repayments, see "Line 6 - Repayments under the HBP and LLP"); or
• your RRSP deduction limit for 2000 (see "Line 8 - Deduction for contributions based on your RRSP deduction limit for 2000") plus amounts you transfer (see "Line 9 - Transfers") to your RRSP on or before March 1, 2001.

Notes
Neither you nor your spouse can contribute to your RRSP after the end of the year you turn 69. Therefore, you may no longer be able to contribute to your own RRSP, even though you still have an RRSP deduction limit that you have not used. If so, you still can contribute to an RRSP for your spouse until the end of the year he or she turns 69. You can deduct these contributions as long as your deduction limit allows.

If you contribute more to an RRSP than you can deduct, you may have to pay a special tax.

Schedule 7

You may not have to complete Schedule 7. To find out, read the information at the top of the schedule. If you do have to complete it, you will find information below about lines 1, 2, 3, 6, 8, and 9.

Line 1 - Unused RRSP contributions

This is the total of all contributions to your own RRSP or to an RRSP for your spouse that you made after 1990 and showed on a previous year's Schedule 7, but did not deduct on any previous return. This amount is shown on your Notice of Assessment or Notice of Reassessment for 1999.

If you do not have your notice, you can find out if you have unused RRSP contributions for 1999 by using our automated T.I.P.S. (RRSP deduction limit) services. See the T.I.P.S. information inside the back cover.

Note
If you made RRSP contributions from March 2, 1999, to February 29, 2000, that you did not deduct on your 1999 return, you should have filed a completed Schedule 7 with your 1999 paper return. If you did not, you should submit your receipts and a completed copy of a 1999 Schedule 7 to your tax centre, but not with your return for 2000. See "How do you change a return?" for details. However, if you made a contribution from January 1, 1991, to March 1, 1999, and you did not show it on a Schedule 7 for 1998 or earlier, contact us.

Lines 2 and 3 - Total RRSP contributions

This total includes amounts you:

• contributed to your own RRSP or an RRSP for your spouse from March 1, 2000, to March 1, 2001;
• transferred to your own RRSP (see "Line 9 - Transfers"); and
• designate as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments (see "Line 6 - Repayments under the HBP and LLP" on this page).

Be sure to include on these lines any contributions you made from January 1, 2001, to March 1, 2001, even if you are not deducting them on your return for 2000. Otherwise, we may reduce or disallow the claim for these contributions you make on your return for a future year.

Do not include the following amounts:

• Any unused RRSP contributions you made on or after March 1, 2000, that were refunded to you or your spouse in 2000. Report the refund on line 129 of your return for 2000. If you have Form T3012A, Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions, that we have approved for that amount, attach it to your paper return and claim a deduction on line 232. Otherwise, attach a completed Form T746, Calculating Your Deduction for Refund of Unused RRSP Contributions, to find out if you can claim this deduction.
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse less than 90 days before you or your spouse withdrew funds from that RRSP under the HBP or LLP. For more details, get the guide called Home Buyers' Plan (HBP) or the guide called Lifelong Learning Plan (LLP).
• Any payments directly transferred to your own RRSP for which you did not receive an information slip.
• The part of an RRSP withdrawal that you recontributed to your RRSP and deducted on line 232. This would have happened if, in error, you withdrew more RRSP funds than necessary to obtain past-service benefits under a registered pension plan (RPP).
• The excess part of a direct transfer of a lump-sum payment from your RPP to an RRSP or registered retirement income fund (RRIF) that you withdrew and are including on line 129 or 130 of your return for 2000, and deducting on line 232. You can complete Form T1043, Deduction for Excess Registered Pension Plan Transfers You Withdrew From Your RRSP or RRIF, to calculate the deductible amount.

Line 6 - Repayments under the HBP and LLP

If you have withdrawn funds from your RRSP under the Home Buyers' Plan (HBP) you may have received a Home Buyers' Plan (HBP) - Statement of Account from us, indicating the amount of the annual repayment you have to make for 2000. If you withdrew funds from your RRSP in 1999 or 2000 under the Lifelong Learning Plan (LLP) you can make a repayment for 2000 if you want, but you do not have to.

You make repayments by contributing to your own RRSP from January 1, 2000, to March 1, 2001, and designating them using line 246 or 262 on Schedule 7. Do not make repayments to us.

Enter on line 6 the amount from line 15, which is the total of the RRSP contributions you are designating as repayments for 2000 under the HBP or LLP. Do this only if you did not deduct them or designate them as repayments on your 1999 return, and they were not refunded to you. You cannot deduct any RRSP contribution you designate as an HBP or LLP repayment on Schedule 7.

Note
If you do not repay the amount indicated on your HBP statement of account on or before March 1, 2001 (and designate it on your Schedule 7 for 2000) you have to include an amount in income. See line 129 for details.

Remember to complete the "2000 withdrawals under the LLP" section of Schedule 7. In that section, you have to state the total of your withdrawals for the year from box 25 of your T4RSP slip, and you can check the box at line 264 to designate that your spouse was the student for whom the funds were withdrawn. If you do not check the box, you will be considered to be the student for LLP purposes. You can change the person you designate as the student only on the return for the year you make your first withdrawal.

The guides called Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) include more information about:

• when you have to make your repayments; and
• the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident.

Line 8 - Deduction for contributions based on your RRSP deduction limit for 2000

We will show your RRSP deduction limit for 2000 on your Notice of Assessment or Notice of Reassessment for 1999, or on Form T1028, Your RRSP Deduction Limit Statement for 2000. You can carry forward indefinitely any part of your RRSP deduction limit accumulated after 1990 that you do not use.

If you do not have your notice or Form T1028, you can find out your limit for 2000 by using our automated T.I.P.S. (RRSP deduction limit) services, or by contacting us. See the T.I.P.S. information inside the back cover.

If you would like to calculate your RRSP deduction limit for 2000, get the guide called RRSPs and Other Registered Plans for Retirement.

Note
In a previous year, you may have received income for which you could contribute to an RRSP, but you may not have filed a return for that year. If you want to keep your RRSP deduction limit up to date, you have to file a return for that year.

Line 9 - Transfers

You may have received certain types of income and reported them on line 115, 129, or 130 of your return for 2000. If you contributed any of these amounts to your own RRSP on or before March 1, 2001, you can deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your "RRSP deduction limit for 2000."

For example, if you received a retiring allowance in 2000, you would report it on line 130 of your return. You can contribute to your RRSP up to the eligible part of that income (box 26 of your T4A slip) and deduct it as a transfer. Include the amounts you are transferring on lines 240 and 245 of Schedule 7.

The guide called RRSPs and Other Registered Plans for Retirement has more information about amounts you can transfer.

Line 209 - Saskatchewan Pension Plan deduction

You can deduct contributions to the Saskatchewan Pension Plan (SPP) for 2000, up to whichever of the following three amounts is least:

• $600;
• your 2000 RRSP deduction limit minus your RRSP deduction from line 208 (not including transfers to your RRSP); or
• the total amount you contributed to the SPP for yourself or your spouse from January 1, 2000, to March 1, 2001, not including any contributions that you deducted on your 1999 return.

Receipts - Attach your receipts to your paper return. If you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 212 - Annual union, professional, or like dues

Enter the total of the following amounts related to your employment in the year:

• annual membership dues you paid to a trade union or an association of public servants;
• dues you paid to a professions board that you had to pay under provincial law;
• professional or malpractice liability insurance premiums or professional membership dues you paid if you had to pay them to keep a professional status recognized by law; and
• dues you paid to a parity or advisory committee (or similar body) that you had to pay under provincial law.

Annual membership dues do not include initiation fees, special assessments, or charges for anything other than the organization's ordinary operating costs. You cannot claim charges for pension plans as membership dues even if your receipts show them as dues. For more information, get Interpretation Bulletins IT-103, Dues Paid to a Union or to a Parity or Advisory Committee, and IT-158, Employees' Professional Membership Dues.

The amount shown in box 44 of your T4 slip, or on your receipts, includes any goods and services tax/harmonized sales tax (GST/HST) you paid.

Tax Tip
You may be eligible for a rebate of any GST/HST you paid as part of your dues. See line 457 for details.

Receipts - Other than your T4 slips, do not include your receipts with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 214 - Child care expenses

You or your spouse (if you have one, see the definition on page 11) may have paid for someone to look after your child so one of you could earn income, go to school, or conduct research in 2000. The expenses are deductible only if, at some time in 2000, the child was under 16 or had a mental or physical infirmity. Generally, only the spouse with the lower net income can claim these expenses.

For more information, and to make your claim, get Form T778, Child Care Expenses Deduction for 2000. However, if you claimed child care expenses on your 1999 return, the package we mailed to you should include this form.

Under proposed changes, you can deduct expenses of up to $10,000 for a child who qualifies for the disability amount (line 316).

Tax Tips
You may be able to claim payments you made to a boarding school, sports school, or camp. For details, get Form T778.

If your child needs special attendant care or care in an establishment, see "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Receipts - Attach a completed Form T778, but not your receipts, to your paper return. In that case, or if you are using NETFILE (see page 9) keep your receipts in case we ask to see them.

Line 215 - Attendant care expenses

If you can claim the disability amount (line 316) you can claim expenses you paid for personal attendant care that allowed you to earn certain income. This includes income from employment or self-employment and a grant you received for conducting research.

Under proposed changes, you also may be able to claim expenses you paid for attendant care that allowed you to go to school.

Tax Tip
"Options" in the guide called Information Concerning People with Disabilities has details about different amounts you may be able to claim.

To calculate your claim, complete Form T929, Attendant Care Expenses. For more information, see Form T929 or use our T.I.P.S. (Info-Tax) services. See the T.I.P.S. information inside the back cover.

Receipts - Do not include your receipts or Form T929 with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 217 - Business investment loss

A business investment loss is a special type of capital loss. For example, such a loss can occur when you dispose of shares or certain debts of a small business corporation. For more information, and to find out how to complete line 217 on your return, lines 227 and 228 (to the left of line 217), and line 5675 in Part 3 of Schedule 3, get the guide called Capital Gains.

If you have a tax shelter, see "Tax shelters".

Line 219 - Moving expenses

Generally, if you moved at least 40 kilometres in 2000 to start a job or a business, or to study full-time at an educational institution that offers post-secondary courses, you can deduct your moving expenses from income you earned at the new location. For more information, get Form T1-M, Moving Expenses Deduction. Remember to tell us your new address.

How to claim

Complete Form T1-M to find out what you can deduct.

Note
If you moved in 1999 but could not claim all your moving expenses in that year, you can claim the remaining expenses against income you earned in 2000 at the new location.

Receipts - Do not include your receipts or Form T1-M with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 220 - Support payments made

Enter on line 230 the total of all spousal and child support you paid in 2000. Enter on line 220 only the deductible amount. If your order or agreement has been amended, or you need more information, get the guide called Support Payments.

Receipts - Do not include your receipts or cancelled cheques, or your court order or written agreement with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Line 221 - Carrying charges and interest expenses

You can claim the following carrying charges and interest you paid to earn income from investments:

• fees to manage or take care of your investments (other than administration fees you paid for your registered retirement savings plan or registered retirement income fund) including safety deposit box charges;
• fees for certain investment advice (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel) or for recording investment income;
• fees to have someone complete your return, but only if you have income from a business or property, accounting is a usual part of the operations of your business or property, and you did not use the amounts claimed to reduce the business or property income you reported (see Interpretation Bulletin IT-99, Legal and Accounting Fees); and
• most interest you pay on money you borrow, but generally only as long as you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. For details, contact us.

You cannot deduct on line 221 any of the following amounts:

• the interest you paid on money you borrowed to contribute to a registered retirement savings plan or a registered education savings plan;
• the interest portion of your student loan repayments (although you may be able to claim a credit on line 319 for this amount); and
• brokerage fees or commissions you paid when you bought or sold securities. Instead, you use these costs when you calculate your capital gain or capital loss. For more information, get the guide called Capital Gains.

Canada Savings Bonds (CSBs) - When you buy bonds through payroll deductions, you may pay an interest charge. You can claim this amount on line 221.

Example
Michael bought a $1,000 CSB through payroll deductions. The total amount deducted from his pay for the bond was $1,017.94 (the $1,000 face value of the bond plus $17.94 he paid in interest). Michael can claim the $17.94 on line 221.

Policy loan interest - To claim interest you paid during 2000 on a policy loan made to earn income, have your insurer complete Form T2210, Verification of Policy Loan Interest by the Insurer, on or before April 30, 2001.

Refund interest - If we paid you interest on an income tax refund, you have to report the interest in the year you receive it, as we explain at line 121 in this guide. If we then reassessed your return and you repaid any of the refund interest in 2000, you can deduct the amount you repaid, up to the amount you had included in your income.

Carrying charges for foreign income - If you have carrying charges for Canadian and foreign investment income, identify them separately on Schedule 4, according to the percentage that applies to each investment.

Receipts - To make your claim, complete Part IV of Schedule 4. Do not include your receipts or Form T2210 with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

If you have a tax shelter, see "Tax shelters".

Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 2000, but did not participate actively, you can deduct your expenses on this line. If you participated actively, follow the instructions at line 135.

How to claim

• Complete Part V of Schedule 4, using the information that the principals of the venture give you.
• Attach to your paper return either a T5 or T5013 slip, or a statement that gives details of the deduction.

The statement has to identify you as a participant in the venture, show your allocation (the number of units you own, the percentage assigned to you, or the ratio of your units to those of the whole partnership), and give the name and address of the fund.

If you have a tax shelter, see "Tax shelters".

Renounced resource expenses - If you received a T101 or T5013 slip, use the instructions on the back to calculate your deduction. Attach to your paper return your slip and a note showing how you calculated your deduction.

Resource allowances - Claim 25% of the eligible amount shown in box 20 of your T5 slips or box 44 of your T5013 slips.

Depletion allowances - Claim these amounts on line 232.

If you have any questions about these expenses, contact the Business Enquiries section of your tax services office. See "Contacting us" on page 5.

Line 229 - Other employment expenses

You can deduct certain expenses (including any goods and services tax/harmonized sales tax (GST/HST)) you paid to earn employment income. You can claim the expenses only if your employment contract required you to pay them, and either you did not receive an allowance for the expenses, or the allowance you received is included in your income.

Note
Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as clothes and tools.

Attach to your paper return a completed Form T777, Statement of Employment Expenses, to give us details of your expenses and to calculate how much you can deduct. The guide called Employment Expenses contains Form T777 and other forms you may need. The guide also explains the limits and conditions that apply when you claim these expenses.

Repayment of salary or wages - You can deduct salary or wages you included in income for 2000 or a previous year, if you repaid them in 2000. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment.

Legal fees - You can deduct legal fees you paid to collect or establish a right to salary or wages. However, you have to reduce your claim by any amount awarded to you, or any reimbursement you received for your legal expenses.

Receipts - Do not include your receipts or forms (except for Form T777) with your paper return. In that case, or if you are using NETFILE (see page 9) keep them in case we ask to see them.

Tax Tip
You may be eligible for a rebate of any GST/HST you paid as part of your expenses. See line 457 for details.

Line 231 - Cleric's residence deduction

Use this line to claim a deduction for your residence if you are a cleric. See Interpretation Bulletin IT-141, Clergy Residence Deduction, to see how much you can claim, if any.

Line 232 - Other deductions

Use this line to claim allowable amounts not deducted anywhere else on this return. In the space to the left of line 232, identify the deduction you are claiming. If you have more than one amount, or you want to explain your deduction more fully, attach a note to your paper return.

For other amounts not listed, use our T.I.P.S. (Info-Tax) services. See the T.I.P.S. information inside the back cover.

Note
A child who was born in 1983 or later can claim a deduction for certain income he or she reports. For more details, see "Split income of a child under 18".

If you have a tax shelter, see "Tax shelters" on page 14.

Income amounts paid back

In 2000, you may have paid back amounts that you received and included in income for 2000 or a previous year. If so, you can deduct these amounts on line 232 of your return for 2000. Attach to your paper return receipts or other documents showing the amounts you paid back. For example, Old Age Security benefits you repaid are shown in box 20 of your T4A (OAS) slip.

Notes
If tax was withheld from your OAS benefits because your income in the previous year was too high, do not deduct it on line 232. This amount is included in box 22 of your T4A(OAS) slip. Claim it on line 437. To make sure the correct amount has been withheld, see line 235 and complete the chart for line 235 on the Worksheet you will find in the forms book.

If you paid back employment income, see "Repayment of salary or wages" under line 229. If you paid back income tax refund interest, see "Refund interest" under line 221.

EI benefits - You may have received more benefits than you should have, and already paid them back to Human Resources Development Canada (HRDC). For example:

• HRDC may have reduced your EI benefits after discovering the mistake. In this case, your T4E slip will show only the net amount you received, so you cannot claim a deduction.
• You may have repaid HRDC. If so, box 30 of your T4E slip will show the amount you paid back. Include this amount on line 232. This is not the same as repaying a social benefit as explained at line 235.

Legal fees

You can deduct your expenses in any of the following situations:

• You paid fees (including any related accounting fees) for advice or assistance in responding to us when we reviewed your income, deductions, or credits for a year, or in objecting to or appealing an assessment or decision under the Income Tax Act, the Unemployment Insurance Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan.
• have to reduce your claim by any award or reimbursements you received for such expenses. In addition, in a future year, if you are awarded the cost of your deductible legal fees, you will have to include that amount in your income for that year.
• You paid fees to collect (or establish a right to) a retiring allowance or pension benefit. However, you can only claim up to the amount of retiring allowance or pension income you received in the year, minus any part of these amounts transferred to a registered retirement savings plan or registered pension plan. You also have to reduce your claim by any award or reimbursement you got for these expenses. You can carry forward for up to seven years legal fees that you cannot claim in the year.
• You incurred fees to collect late support payments that you will include in your income (or non-taxable child support payments) or to defend your right to such payments.
• You incurred fees to get a court order when suing your spouse or former spouse, or the natural parent of your child, in a Family Court to establish the amount of support payments (including non-taxable child support payments) for which a right already exists.

You cannot claim legal costs you incurred to:

• obtain a separation or divorce;
• establish the right to spousal support payments;
• revise the amount of spousal or child support payments; or
• establish custody of a child.

For details of other legal fees you may be able to deduct, get Interpretation Bulletin IT-99, Legal and Accounting Fees.

Line 235 - Social benefits repayment

Employment Insurance (EI) benefits

You may have to repay part of the EI benefits (line 119) you received in 2000 if one of the following applies:

• There is an amount in box 15 of your T4E slip, the repayment rate in box 7 is 30%, and your net income before adjustments (line 234) is more than $48,750.
• There is an amount in box 16 of your T4E slip, and your net income before adjustments (line 234) is more than $48,750.
• There is an amount in box 15 of your T4E slip, the repayment rate in box 7 is more than 30%, and your net income before adjustments (line 234) is more than $39,000.

Complete one or both of the charts included with your T4E slip to calculate how much of your EI benefits you have to repay. If you also have to repay Old Age Security (OAS) benefits you received (see the next section) enter the EI benefits that you have to repay on lines 7 and 13 of the chart for line 235 on the Worksheet you will find in the forms book.

Old Age Security (OAS) benefits

You may have to repay all or a part of your OAS pension (line 113) or net federal supplements (line 146) if your net income before adjustments (line 234) is more than $53,960. Complete the chart for line 235 on the Worksheet you will find in the forms book to calculate how much you have to repay, even if repayment amounts were withheld by Human Resources Development Canada.

Note
Tax may have been withheld from your monthly OAS pension if you had an OAS repayment for 1999. The amount deducted is included in box 22 of your T4A(OAS) slip for 2000. Claim it on line 437 when you file your return for 2000. Similarly, if you have an OAS repayment for 2000, tax may be withheld starting with your July 2001 OAS payment. For more details, contact us.