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ARCHIVED - General Income Tax and Benefit Guide - 2000

We have archived this page and will not be updating it.

You can use it for research or reference.

We have archived this page and will not be updating it.

You can use it for research or reference.

Taxable income

Line 248 - Employee home relocation loan deduction

Enter the amount shown in box 37 of your T4 slip.

Line 249 - Stock option and shares deductions

Enter the total of the amounts shown in boxes 39, 41, 98, and 99 of your T4 slips. In addition, under proposed changes, if, before October 18, 2000, you disposed of securities for which you had previously deferred the taxable benefit (see "Stock-option benefits" on page 14) claim 33.3333% of the amount from line 4 of Form T1212, Statement of Deferred Stock Option Benefits. If you disposed of them after October 17, 2000, claim 50% of that amount.

Under proposed changes, you now may be able to claim a deduction for donating securities you acquired through your employer's stock option plan. For details, see "Gifts of securities acquired under a stock-option plan" in the pamphlet called Gifts and Income Tax.

Line 250 - Other payments deduction

Generally, you can deduct the amount from line 147 of your return. This is the total of the workers' compensation payments, social assistance payments, and net federal supplements you entered on lines 144, 145, and 146.

Note
 If your net income before adjustments (line 234) is more than $53,960 and you reported net federal supplements on line 146, you may not be entitled to claim the whole amount from line 147. Contact us to determine how much you can deduct.

Line 251 - Limited partnership losses of other years

If you had limited partnership losses in previous years that you have not already deducted, you may be able to claim part of these losses against income earned from the same partnership. For details, contact us.

You can carry forward limited partnership losses indefinitely. If you claim these losses, attach a statement showing a breakdown of your total losses and the year of each loss. You cannot use the amount in box 31 of your T5013 slip for 2000 on your return for 2000.

Line 252 - Non-capital losses of other years

Enter the amount of your unapplied non-capital losses you reported on your 1993 to 1999 returns, or your unapplied farming and fishing losses you reported on your 1990 to 1999 returns, that you want to apply in 2000. There are restrictions on the amount of certain farm losses that you can deduct each year. If you have a farming or fishing business, get the Farming Income, Farming Income and NISA, or Fishing Income guide for details.

If you need more information on losses, get Interpretation Bulletin IT-232, Losses - Their Deductibility in the Loss Year or in Other Years.

Note
 You may want to carry back your non-capital, farming, or fishing loss for 2000 to your 1997, 1998, or 1999 return. To do this, use the Form T1A, Request for Loss Carryback. Attach a completed copy to your paper return. Do not file an amended return for the year or years to which you want to apply the loss.

Line 253 - Net capital losses of other years

Within certain limits, you can deduct your net capital losses of previous years that you have not already claimed. For details, get the guide called Capital Gains.

Notes
 If you incurred a net capital loss in 2000, and you want to apply it against taxable capital gains you reported on your 1997, 1998, or 1999 return, get Form T1A, Request for Loss Carryback. Attach a completed copy to your paper return. Do not file an amended return for the year or years to which you want to apply the loss.

If you are completing a return for a person who died in 2000, get the guide called Preparing Returns for Deceased Persons for details about special rules that apply to claiming these losses.

Line 254 - Capital gains deduction

You can claim a capital gains deduction for gains realized on qualified small business corporation shares and qualified farm property. For more details on this deduction, get the guide called Capital Gains.

Line 255 - Northern residents deductions

To make your claim, use Form T2222, Northern Residents Deductions - 2000. Residents of Nunavut, the Yukon, and the Northwest Territories will find this form in their forms book. You also can get a copy from us. For a list of the areas that qualify, get publication T4039, Northern Residents Deductions - Places in Prescribed Zones.

Receipts - Attach a completed Form T2222, 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 256 - Additional deductions

In the space to the left of line 256, 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.

Income exempt under a tax treaty

You can claim a deduction for foreign income you included on your return (such as support payments you received from a resident of another country and reported on line 128) if it is tax-free in Canada because of a tax treaty. If you received foreign income and you do not know whether it is tax-free in Canada, contact us.

Note
 Under the Canada-U.S. tax treaty, you can claim a deduction equal to 15% of the U.S. social security benefits included in your income on line 115.

Vow of perpetual poverty

If you have taken a vow of perpetual poverty as a member of a religious order, you can deduct the amount of earned income and pension benefits that you have given to the order. Attach a letter from your order or your employer stating that you have taken a vow of perpetual poverty. For more information, see Interpretation Bulletin IT-86, Vow of Perpetual Poverty.

Employment with a prescribed international organization

You can claim a deduction for your net employment income from certain international organizations, such as the United Nations and its Specialized Agencies, that you reported on this return. Net employment income is your employment income from these agencies minus the related employment expenses that you are claiming.

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 and 315 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 or emigrated from Canada in 2000, be sure to enter the date of your move in the Identification area on page 1 of your return. You may have to reduce your claim for personal amounts (lines 300 to 306 and 315). For more information, get either the pamphlet called Newcomers to Canada or the pamphlet called Emigrants and Income Tax, whichever applies.

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), and for your or your spouse's children and grandchildren who were born in 1982 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 2000.

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

Line 300 - Basic personal amount

Claim the basic personal amount of $7,231.

Line 301 - Age amount

If you were 65 or older on December 31, 2000, and your net income (line 236 of your return) is:

Date of birth - Be sure to enter your date of birth in the Identification area on page 1 of your return.

Tax Tips
If you do not need all of your age amount to reduce your federal income tax to zero, you can transfer the unused part 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

You may be able to claim a spousal amount if, in 2000, you had a spouse (see page 11) whom you supported. In the Identification area on page 1 of your return, be sure to enter the information concerning your spouse. If your spouse's net income (see the next section) is:

If you were required to make support payments to your spouse or former spouse, and you were separated for only part of the year, because of a breakdown in your relationship, you have a choice. You can claim, for your spouse, either the deductible support amounts paid for the year or the spousal amount, whichever is better for you. If you reconciled before the end of 2000, and you choose to claim the spousal amount, you also can claim any allowable amounts on line 326.

Net income of spouse

This is the amount on line 236 of your spouse's return, or the amount that it would be if he or she filed a return. If you were living with your spouse on December 31, 2000, use his or her net income for the whole year. This applies even if you got married in 2000, or if you separated and got back together in 2000.

If you separated in 2000 because of a breakdown in your relationship, and were not back together on December 31, 2000, reduce your claim only by your spouse's net income before the separation. In addition, common-law spouses have to be separated for at least 90 days.

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 an equivalent-to-spouse amount if, at any time in the year, you met all of the following conditions:

To qualify, at the time you met the above conditions, the dependant also must have been either:

Notes
 Your dependant may live away from home while attending school. If the dependant ordinarily lived with you when not in school, we consider that dependant to live with you for the purposes of this credit.

For the purposes of this claim, your child is not required to have lived in Canada, but still must have lived with you. This would be possible, for example, if you were a deemed resident (as defined on page 8) living in another country with your child.

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

How to claim

Notes
 You cannot split this amount with another person. Once you claim this amount for a dependant, no one else can claim this amount or an amount on line 306 for that dependant.

If you and another person both can claim this amount for the same dependant, but cannot agree who will claim it, neither of you is allowed to claim the amount.

Tax Tip
 If the dependant is infirm, see "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount for your or your spouse's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1982 or earlier.

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

Notes
 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.

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

If anyone other than you is claiming an amount on line 305, or anyone (including you) can claim an amount on line 315, for a 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.

You can claim an amount only if the dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $7,231.

If you were required to make support payments for that child, you cannot claim an amount on line 306 for that child. However, if you were separated for only part of 2000 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either the amount for infirm dependants age 18 or older (plus any allowable amounts on lines 305 and 318) or the support amounts paid for the year (if they are deductible) whichever is better for you.

How to claim

Claims made by more than one person - If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot be more than the maximum amount allowed for that dependant.

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

Line 308 - Canada or Quebec Pension Plan contributions through employment

Enter the total, in dollars and cents, of the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions shown in boxes 16 and 17 of your T4 slips. Do not enter more than $1,329.90. If you contributed to the QPP in 2000 but lived outside Quebec on December 31, 2000, attach to your paper return the RL-1 slip your employer sent you.

If you contributed more than $1,329.90, enter the excess amount on line 448 of your return. We will refund this overpayment to you, or use it to reduce your balance owing. However, if you lived in Quebec on December 31, 2000, and contributed more than $1,329.90, claim the overpayment on your Quebec provincial return.

You may have an overpayment, even if you contributed $1,329.90 or less. For example:

To calculate your overpayment, get Form T2204, Employee Overpayment of 2000 Canada Pension Plan Contributions and 2000 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 31.

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 the CPP on this income. See "Making additional CPP contributions" for details.

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 have both employment 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 self-employment 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:

If the amount on line 308 is less than $1,329.90, you can contribute 7.8% on any part of the income on which you have not already made contributions. The maximum income for 2000 for which you can contribute to the CPP is $37,600. Making additional contributions may increase the pension you receive later.

To make additional CPP contributions for 2000, get Form CPT20, Election to Pay Canada Pension Plan Contributions. Attach a completed copy to your paper return, or send it to us separately before June 16, 2002. This form lists the eligible employment income on which you can make additional CPP contributions.

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

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 contribution in dollars and cents.

If you were a resident of Quebec, use the total of the amounts on lines 27 and 33 of Schedule L on your Quebec provincial return. Enter on line 310 the amount of the contribution in dollars and cents.

Note
 We will prorate your CPP or QPP contribution, and show the correct amount on your Notice of Assessment in certain situations, such as if, in 2000, you:

Line 312 - Employment Insurance premiums

Enter the total, in dollars and cents, of the amounts shown in box 18 of all your T4 and T4F slips. Do not enter more than $936.00.

If you contributed more than $936.00, enter the excess amount on line 450 of your return. We will refund this overpayment to you, or use it to reduce your balance owing.

You also may have an overpayment if you contributed $936.00 or less and, from all your T4 slips for 2000, the total of amounts in box 14 is more than the total of amounts in box 24. If box 24 is blank, use the amount in box 14. To calculate your overpayment, get Form T2204, Employee Overpayment of 2000 Canada Pension Plan Contributions and 2000 Employment Insurance Premiums.

If the total of the Employment Insurance (EI) insurable earnings shown in box 24 of all your T4 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 $2,049, 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 correctly.

Note
 Only pension or annuity income you report on line 115 or 129 qualifies for the pension income amount. Therefore, amounts such as Old Age Security benefits, Canada Pension Plan benefits, Quebec Pension Plan benefits, Saskatchewan Pension Plan payments, death benefits, retiring allowances, and amounts in boxes 18, 20, 22, 26, 28, and 34 of your T4RSP slip do not qualify.

Use the chart for line 314 on the Worksheet you will find in the forms book to calculate your claim.

Tax Tips
If you do not need all of your pension income amount to reduce your federal income tax to zero, you can transfer the unused part 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 315 - Caregiver amount

If, at any time in 2000, you (either alone or with another person) maintained a dwelling where you and a dependant lived, you may be able to claim this amount. The dependant must have been one of the following individuals:

Note
 Under recent changes, you also could have claimed this amount for your spouse's aunt or uncle for 1998 and 1999. If this affects how you would have filed your return for those years, you can ask us to correct it. See "How do you change a return?" for details.

In addition, the dependant must have met all of the following conditions. The person must have:

If you were required to make support payments for that child, you cannot claim an amount on line 315 for that child. However, if you were separated for only part of 2000 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either the caregiver amount (plus any allowable amounts on lines 305 and 318) or the support amounts paid for the year (if they are deductible) whichever is better for you.

Use the chart for line 315 on the Worksheet you will find in the forms book to calculate your claim. Complete the appropriate part of Schedule 5 and attach the schedule to your paper return to claim this amount.

Claims made by more than one person - If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot be more than the maximum amount allowed for that dependant.

If anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 306 for that dependant. If anyone other than you claims an amount on line 305 for a dependant, you cannot claim an amount on line 315 for that dependant. See "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Line 316 - Disability amount

You may be able to claim a disability amount of $4,293 if a qualified person certifies both of the following:

The only persons who can qualify to certify that your impairment was severe and prolonged are medical doctors, optometrists, audiologists, occupational therapists, psychologists, and, under proposed changes, after October 17, 2000, speech-language pathologists.

You may be markedly restricted in a basic activity of daily living if you are unable to do the following, even with therapy (other than life-sustaining therapy, see below) and the use of appropriate devices and medication:

You also can be considered to be markedly restricted if it takes you an extremely long time to do any of the above.

Life-sustaining therapy

You may receive life-sustaining therapy to support a vital function, such as clapping therapy to help in breathing or kidney dialysis to filter your blood. Under proposed changes, you may qualify for this amount if a medical doctor certifies that you need this therapy at least three times per week, to an average of at least 14 hours per week. This therapy does not include special programs of diet, exercise, hygiene, or medication.

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

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

Supplement

Under proposed changes, a person who qualifies for the disability amount can claim an additional $2,941 if he or she was under 18 at the end of the year. The person may be able to transfer to his or her spouse or other supporting person any part of this amount the person does not need to reduce his or her federal income tax to zero. However, child care expenses (line 214) and attendant care expenses (on line 215 or as a medical expense on line 330) anyone claimed for the person for 2000 may reduce this claim.

How to claim

For more details, get the guide called Information Concerning People with Disabilities. That guide also contains Form T2201. We will accept a photocopy of your Form T2201 only if the signature of the person authorized to certify the impairment is an original, not a photocopy.

Transfers

You can transfer to your spouse the part of your disability amount you do not need to use to reduce your federal income tax to zero. Your spouse would claim it on line 326 of his or her return. If you do not transfer this amount to your spouse, you can transfer it to another supporting person, who would claim it on line 318 of his or her return.

If your spouse does not need to use all of his or her disability amount, you may be able to claim the unused part on line 326. If you have another dependant who does not need to use all of this amount, you may be able to claim the unused part on line 318.

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

You may be able to claim all or part of any disability amount (line 316) for which your dependant qualifies. You can claim the unused part if he or she lived in Canada at any time in 2000, and was dependent on you because of his or her mental or physical impairment. In addition, one of the following situations has to apply:

If you are required to make support payments for your child, you cannot claim a disability amount for that child. However, if you were separated for only part of 2000 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either the transfer of the unused part of his or her disability amount (plus any allowable amounts on lines 305, 306, and 315) or the support amounts paid for the year (if they are deductible) whichever is better for you.

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

How to claim

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

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.

Tax Tip
If you can claim this amount, you also may be able to claim an amount on line 315 for the same dependant.

Line 319 - Interest paid on your student loans

You can claim an amount for most of the interest you, or a person related to you, paid after 1997 on loans made to you for post-secondary education under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws.

You can claim an amount only for interest you have not previously claimed. If you do not wish to claim these amounts on the return for the year they are paid, you can carry them forward and apply them on your return for any of the next five years.

Note
 You cannot claim interest paid in respect of a judgement obtained after you failed to pay back a student loan.

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

Line 323 - Tuition and education amounts

Claim your eligible tuition and education amounts for 2000, and any unused amounts carried forward from previous years that are shown on your Notice of Assessment or Notice of Reassessment for 1999. See "Transferring and carrying forward amounts" on this page for more information. Attach to your paper return a completed Schedule 11. For more details, get the pamphlet called Students and Income Tax.

Receipts - Do not include your receipts or forms (other than Schedule 11) 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.

Eligible tuition fees

You can claim only the fees paid for courses you took in 2000. Generally, a course qualifies if it was taken at the post-secondary level or (for individuals aged 16 or over at the end of the year) it develops or improves skills in an occupation. However, more than $100 for the year must have been paid to each educational institution whose fees you claim.

You cannot claim other expenses, such as books, or board and lodging. See the Students and Income Tax pamphlet for details about what kinds of institutions and fees qualify.

Forms

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

Education amount

You can claim this amount for each whole or part month in 2000 in which you were enrolled in a qualifying educational program. Generally, you cannot claim this amount for a program for which you received a reimbursement, benefit, grant, or allowance, or for a program related to your job if you received a salary or wages while studying.

Under proposed changes, if you were under 16 at the end of the year, you can claim this amount only for courses you took at the post-secondary level.

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

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

Transferring and carrying forward amounts

You have to show your tuition and education amounts first on your own return, even if someone else paid your fees. However, you can transfer to your spouse the part of your tuition and education amounts you do not need to use to reduce your federal income tax to zero. Your spouse would claim it on line 326 of his or her return. If you do not transfer this amount to your spouse, you can transfer it to your or your spouse's parent or grandparent, who would claim it on line 324 of his or her return.

Complete the back of Form T2202 or T2202A, as well as Schedule 11 (particularly line 327) to calculate and designate this transfer.

You can carry forward and claim in a future year the part of your tuition and education amounts you do not need to use (and do not transfer) for the year. However, if you carry forward an amount, you will not be able to transfer it to anyone. You have to claim your carry-forward amount in the earliest year possible. Calculate this amount on Schedule 11.

Tax Tips
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. That way, you can carry forward as much as possible to use in a future year.

If your spouse does not need to use all of his or her tuition and education amounts, you may be able to claim the unused part on line 326. If your child or grandchild does not need to use all of these amounts, you may be able to claim the unused part on line 324.

Line 324 - Tuition and education amounts transferred from a child

A student who does not need all of his or her tuition and education amounts for 2000 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 the student or of the student's spouse. The maximum amount that each student can transfer is $5,000 minus the amount the student needs, even if there is still an unused part.

How to claim

The student has to complete Form T2202, Education Amount Certificate, or Form T2202A, Tuition and Education Amounts Certificate, to calculate the transfer amount and to designate you as the parent or grandparent who can claim it. 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.

Amounts claimed by student's spouse - If a student's spouse claims amounts on line 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.

No amounts claimed by student's spouse - If no amounts are claimed for the student by the student's spouse, or if the student does not have a spouse, the student can choose which parent or grandparent will claim the tuition and education amounts transfer. Only one person can claim the transfer from the student. However, it does not have to be the same parent or grandparent as the person who claims the student as a dependant on line 305 or 306.

Receipts - Do not include the student's Schedule 11, forms, or official tuition fees receipt 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 326 - Amounts transferred from your spouse

Your spouse (as defined on page 11) may be able to 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:

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, 2000.

Complete Schedule 2 to calculate your claim. In the Identification area on page 1 of your return, be sure to show your marital status and your spouse's name and social insurance number.

Receipts - Attach the completed Schedule 2 to your paper return. Also attach Form T2201, Disability Tax Credit Certificate, if one has not been submitted before. If your spouse qualified for the disability amount for 1999 and still met the eligibility requirements in 2000, you can claim this amount without sending us a new Form T2201 for 2000 unless the previous period of approval ended before 2000 or we ask you to do so.

Do not include any receipts or forms (other than your own Schedule 2) for your spouse's tuition or education amounts 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 330 - Medical expenses

You can claim medical expenses you or your spouse paid for any of the following persons:

You can claim medical expenses paid in any 12-month period ending in 2000 and not claimed for 1999. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than either 3% of your net income (line 236) or $1,637, whichever is less.

If you are completing the return for a person who died in 2000, you can claim expenses paid in any 24-month period that includes the date of death, if they were not claimed for any other year.

Notes
 If you claim medical expenses for a dependant (other than your spouse) whose net income is more than $7,231, you have to reduce your claim. See line 331 for details.

In addition, there is a refundable tax credit for working individuals with low incomes and high medical expenses. See line 452 for details.

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

Allowable medical expenses

The most common medical expenses you can claim are:

While building the primary residence of a person who has a severe and prolonged mobility impairment, or who lacks normal physical development, additional costs may have been paid to allow the person to gain access to (or be more mobile or functional within) the home. If so, under proposed changes, you also can claim these costs, minus any related rebates you can claim, such as for the goods and services tax/harmonized sales tax. Make sure you get a breakdown of these costs.

For more examples of allowable medical expenses, use our T.I.P.S. (Info-Tax) services. See the T.I.P.S. information inside the back cover.

Travel expenses - If medical treatment is not available locally, you may be able to claim the cost of travelling to get the treatment somewhere else. You can choose to simplify the way you calculate this amount. For more information, use our T.I.P.S. (Info-Tax) services. See the T.I.P.S. information inside the back cover.

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

How to claim

Calculate your claim as follows:

Receipts - Attach your receipts and other documents (other than your health services plan premium receipts) to your paper return. If you are using NETFILE (see page 9) keep them in case we ask to see them. Receipts for attendant care or therapy paid to an individual should show the individual's name and social insurance number.

For claims where a properly completed and certified Form T2201 is required, also attach it. If the person for whom you are claiming medical expenses qualified for the disability amount for 1999 and still met the eligibility requirements in 2000, you can claim this amount without sending us a new Form T2201 for 2000 unless the previous period of approval ended before 2000 or we ask you to do so.

The following example shows how to calculate your claim.

Example
 Carol and her husband have reviewed their medical bills and decided that the 12-month period ending in 2000 for which they will calculate their claim is July 1, 1999, through June 30, 2000. The total of their allowable expenses for that period is $1,842, which Carol 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 the result is less than $1,637, she enters $960 on the line below line 330, and subtracts it from $1,842. The difference is $882, which is the amount she enters on line 332.

Carol's husband's net income is $48,000. When they calculate the amount that he would be allowed if he made the claim instead, they find that he would be allowed only $402. In this case, they have found that it is better for Carol to claim the expenses.

Line 331 - Medical expenses adjustment

If you claimed medical expenses for a dependant, other than your spouse, whose net income was more than $7,231, you have to reduce your medical expenses by making the following adjustment:

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 338

To calculate this amount, 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 "Federal tax calculation" on page 37 of this guide.

Note
 If the amount on line 260 equals, or is less than, both the amount on line 335 and $30,004, you have no federal taxes to pay. After you calculate the amount on line 338, go to line 406 on page 4 of your return, enter "0" on that line, and complete the rest of your return.

Line 349 - Donations and gifts

You can claim donations made by either you or your spouse. Enter your claim from the calculation on Schedule 9 and attach it to your paper return. For more information, or if you made any of the following donations, see the pamphlet called Gifts and Income Tax:

Notes
 These gifts do not include contributions to political parties. If you contributed to a federal political party, see lines 409 and 410 to find out about claiming a credit. If you contributed to a provincial or territorial political party, see the provincial or territorial forms in the forms book to find out about claiming a credit.

Gifts to Canada include monetary gifts made directly to the federal Debt Servicing and Reduction Account. If you made such a gift, which will be used only to service the public debt, you should have received a tax receipt. To make a gift to this account, which should be made payable to the Receiver General, send it, along with a note asking that we apply it to this account, to: Place du Portage, Phase III, 11 Laurier Street, Hull QC K1A 0S5.

Receipts - Attach to your paper return your official receipts, showing either your name or your spouse's name. If you are using NETFILE (see page 9) keep them in case we ask to see them. You do not have to attach receipts for amounts shown in box 46 of your T4 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.

You may have included with a previous return a receipt for a donation you are claiming for 2000. If so, attach a note indicating the return with which you submitted the receipt.

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

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

Add up all of the donations made in 2000 plus any donations made in any of the previous five years that have not been claimed before. This includes unclaimed gifts to Canada, a province, or a territory made after February 18, 1997, other than those agreed to in writing before February 19, 1997, which you include on line 342.

Generally, you can claim all or part of this amount, up to the limit of 75% of your net income (line 236). For the year a person dies and the year before that, this limit is 100% of the person's net income.

Note
 If you have taken a vow of perpetual poverty as a member of a religious order, this limit does not apply. Claim your donations on line 256 of your return.

Tax Tip
 You do not have to claim, on your return for 2000, the donations you made in 2000. It may be more beneficial for you not to claim them for 2000, but to carry them forward and claim them on your return for any of the next five years. No matter how you claim them, you can claim them only once.

Qualified donees

Generally, you can claim only amounts you gave to Canadian registered charities and other qualified donees. For a list of the types of donees that qualify, get the pamphlet called Gifts and Income Tax, or use our T.I.P.S. (Info-Tax) services. See the T.I.P.S. information inside the back cover.

Cultural and ecological gifts (line 342 of Schedule 9)

Unlike other donations, your claim for these types of gifts is not limited to a percentage of net income. You can choose the part you want to claim in 2000, and carry forward any unused part for up to five years. For information about the kinds of property to claim, see the pamphlet called Gifts and Income Tax.

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