ARCHIVED - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada 2000

Total income

If you were a deemed resident of Canada in 2000, you have to include in income most amounts you received in 2000. However, whether you were a deemed resident, a non-resident, or a non-resident electing under section 217, you do not have to include certain amounts in your income, including the following:

• any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
• allowances for newborn children received from the Régie des rentes du Québec and Quebec family allowances;
• compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
• lottery winnings;
• most inheritances;
• most amounts received because of disability or death that resulted from war service; and
• most amounts received from a life insurance policy following someone's death.

Note
Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.

Retroactive lump-sum payments

You may have received a lump-sum payment of certain income in 2000, of which parts were for previous years after 1977. You have to report the whole payment for 2000.

We will not reassess the returns for the previous years to include this income. However, for 2000 you can ask us to tax the parts for the previous years as if you received them in those years. We can apply this calculation to the parts that apply to years throughout which you were resident in Canada, if the total of those parts is $3,000 or more (not including interest) and it is better for you. Eligible income includes:

• employment income and damages for loss of employment received by order or judgement of a competent tribunal, as an arbitration award, or under a lawsuit settlement agreement;
• periodic pension benefits, which do not include Canada or Quebec Pension Plan benefits (see line 114) or the final payment received when leaving a plan;
• wage-loss replacement plan benefits;
• spousal or child support payments; and
• Employment or Unemployment Insurance benefits.

You can ask us to apply this calculation by attaching to your return all completed copies of Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment, that payers have given you. We will tell you the results on your Notice of Assessment or Notice of Reassessment.

Loans and transfers of property

If you were a deemed resident of Canada in 2000, you may have to report income, such as dividends (see line 120) or interest (see line 121) from property (including money and any replacement property) you loaned or transferred to your spouse, child, or other relative. You also may have to report capital gains (see line 127) or losses from the disposition of property you loaned to your spouse.

For details, get Interpretation Bulletin IT-510, Transfers and Loans of Property made after May 22, 1985 to a Related Minor, or IT-511, Interspousal and Certain Other Transfers and Loans of Property.

Split income of a child under 18

Certain income of a child who was born in 1983 or later is now treated differently. This income is not affected by the preceding section. It is subject to a special tax, but also qualifies for a deduction. This applies to the following amounts received either directly or through a trust (other than a mutual fund trust) or partnership:

• dividends from shares (not including those in a mutual fund corporation or listed on a prescribed stock exchange); and
• shareholder benefits that relate to shares that are not listed on a prescribed stock exchange.

The above also applies to income from a trust (other than a mutual fund trust) or partnership for providing goods or services to (or in support of) a business operated by:

• someone related to the child at any time in the year;
• a corporation that has a specified shareholder who is related to the child at any time in the year; or
• a professional corporation that has a shareholder who is related to the child at any time in the year.

The above does not apply if:

• the income is from property inherited by the child and, during the year, he or she either is enrolled full-time in a post-secondary institution or qualifies for the disability amount (line 316);
• the income is from property the child inherits from a parent;
• the child was a non-resident of Canada at any time in the year; or
• neither of the child's parents lived in Canada at any time in the year.

How to report

The child still reports the income on the appropriate lines of his or her return. However, he or she can claim a deduction on line 232 for this income. The special tax is reported on line 424 on Schedule 1. To calculate it, get Form T1206, Tax on Split Income. Attach a completed copy to the child's return.

Tax shelters

To claim deductions or losses from tax shelter investments, attach to your return any applicable T5003 and T5013 slips, and a completed Form T5004, Statement of Tax Shelter Loss or Deduction. Make sure your form shows the tax shelter identification number.

 

⬤▲ Line 101 - Employment income

Enter the total of amounts shown in box 14 of all your T4 slips. If you have not received your slip by early April, or if you have any questions about an amount on a slip, contact your employer.

If you have employment expenses, see line 229 for details.

Non-residents electing under Section 217- If you are a former resident of Canada, report employment income from a Canadian resident for services performed outside Canada if, under a tax treaty or international convention, the income is exempt from tax in your new country of residence. For more information, contact the International Tax Services Office.

Notes
If you received a housing allowance as a cleric, the allowance may be included in box 14 of your T4 slip. If so, subtract the amount of the allowance from the amount in box 14, and include the difference on line 101. Include the allowance on line 104. You may be entitled to claim a deduction on line 231.

If you were a deemed resident of Canada in 2000 and had employment income from another country, report it on line 104 of your return.

If tips you received through employment are not included on your T4 slip, report them on line 104. You may be able to contribute to the Canada or Quebec Pension Plan for this income. See line 310 for details.

Tax Tip
Your contributions to the Canada or Quebec Pension Plan (box 16 or 17 of your T4 slips and any amount on line 310 of your return) determine the amount of benefits you will receive under either of these plans. If there are no contributions in box 16 or 17 of your T4 slips, or if you have any questions about the amount of your contributions, contact your employer.

Emergency volunteers

In 2000, you may have received a payment from a government, municipality, or other public authority for your work as a volunteer ambulance technician, fire fighter, or search, rescue, or other emergency worker. If so, the T4 slip issued by such an authority generally will show only the taxable part of the payment, which is the part that is more than $1,000. However, if that authority employed you (other than as a volunteer) for the same or similar duties, the whole payment will be taxable.

Stock-option benefits

You may have received taxable benefits on certain stock options you exercised after February 27, 2000. Under proposed changes, you may be able to choose to defer reporting these benefits until you dispose of those securities.

For this to apply, you have to confirm certain information in writing with your employer, and file Form T1212, Statement of Deferred Stock Option Benefits, with your return each year. Your Notice of Assessment each year will show the total of all your deferred amounts.

Commissions (box 42)

Enter on line 102 the total commissions shown in box 42 on all your T4 slips you received as an employee. This amount is already included in your income on line 101, so do not add it again when you calculate your total income on line 150. If you have commission expenses, see line 229 for details.

If you are a self-employed commission salesperson, get the guide called Business and Professional Income to determine how to report your commission income and claim your expenses.

⬤▮▲ Line 104 - Other employment income

Amounts to report on this line include the following:

• Employment income not reported on a T4 slip - Include amounts such as tips and occasional earnings.
• Net research grants - Subtract your expenses from the grant you received and include the net amount on this line. Your expenses cannot be more than your grant. Attach to your return a list of your expenses. For details, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, and Research Grants.
• Foreign employment income - If you were a deemed resident of Canada in 2000 and you had foreign employment income, report your earnings in Canadian dollars (see "How do you report foreign income and other amounts?" on page 13). The amount on your United States W-2 slip may have been reduced by contributions to a "401(k) plan." Those contributions are not deductible on your Canadian return. Therefore, you have to add this amount into your income as well.
• Income-maintenance insurance plans (wage-loss replacement plans) - Box 28 of your T4A slip includes the payments you received from such a plan. There also should be a note on the slip identifying the amount. You may not have to report the full amount on your return. Report the amount you received, minus contributions you made to the plan after 1967, if you did not use them on a previous year's return to calculate the amount to report. For more information, get Interpretation Bulletin IT-428, Wage Loss Replacement Plans.
• Certain goods and services tax/harmonized sales tax (GST/HST) and Quebec sales tax (QST) rebates - If you
• are an employee who paid and deducted employment expenses in 1999 or earlier, you may have received a GST/HST or QST rebate in 2000 for those expenses. If so, include on line 104 the rebate you received. However, a rebate for a vehicle or musical instrument you bought, for which you can claim capital cost allowance, is treated differently. The guide called Employment Expenses contains instructions on how to report such rebates, as well as information about capital cost allowance.

To find out what other amounts to include on this line, contact the International Tax Services office.

⬤▲ Line 113 - Old Age Security pension

Enter the amount shown in box 18 of your T4A(OAS) slip. Do not include on line 113 the amount in box 21 of your T4A(OAS) slip. For details on how to report this income, see line 146. If you do not have your T4A(OAS) slip, contact the nearest Income Security Programs office of Human Resources Development Canada.

If your net income before adjustments (line 234) is more than, $53,960, see line 235 for information about repaying OAS benefits.

Non-residents electing under section 217 - Your
Old Age Security benefits may be shown in box 16 of
your NR4-OAS slip.

⬤▲ Line 114 - Canada or Quebec Pension Plan benefits

Enter the total Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits shown in box 20 of your T4A(P) slip. This amount is the total of the amounts in boxes 14 to 18. If your T4A(P) slip has an amount in box 16, 17, or 18, read the part of this section that applies to you.

Non-residents electing under section 217 - Your CPP or QPP benefits may be shown in box 16 or 26 of your NR4 slip if the income code in box 14 or 24 of the NR4 slip contains one of these income codes: 46, 47, 48, 49 50, or 51.

Lump-sum benefits -You may have received a lump-sum CPP or QPP benefit in 2000, of which parts were for previous years. You have to report the whole benefit for 2000. We will not reassess the returns for the previous years to include this income. However, if you were a deemed resident in 2000 we will tax the parts that relate to previous years as if you received them in those years if the total of those parts is $300 or more and it is better for you. Attach to your return the letter you received from Human Resources Development Canada and we will tell you the results on your Notice of Assessment or Notice of Reassessment.

CPP or QPP disability benefit (box 16)

Enter on line 152, located below and to the left of line 114, the amount of your CPP or QPP disability benefits from box 16. This amount is already included in your income on line 114, so do not add it again when you calculate your total income on line 150.

CPP or QPP child benefit (box 17)

Include a child benefit only if you received it because you were the child of a deceased or disabled contributor. Any benefits paid for your children are their income, even if you received the payment.

CPP or QPP death benefit (box 18)

If you received this amount and you are a beneficiary of the deceased person's estate, you can choose to include it either on line 114 of your own return, or on a T3 Trust Income Tax and Information Return for the estate. Do not report it on the deceased person's individual return. The taxes payable may be different, depending on which return you use. For more information, get the guide called T3 Trust Guide.

⬤▲ Line 115 - Other pensions or superannuation

Include on this line any other pensions or superannuation you received, such as amounts shown in box 16 of your T4A slips and box 31 of your T3 slips. Report on line 130 any amount shown in box 18 of your T4A slip or box 22 of your T3 slip.

You may also have to report on this line other amounts that you received. Read the parts of this section that correspond to the type of income you received.

Non-residents electing under section 217 - Your other pensions or superannuation may be shown on your NR4 slip. Make sure the income code located in
box 14 or 24 corresponds with the type of income reported. On the back of the NR4 slip, you will find a description of the income codes.

Tax Tip
If you have to report your pension or annuity payments on line 115, you may be able to claim the pension income amount. See line 314 for details.

Annuity and registered retirement income fund (including life income fund) payments

Report an amount from box 24 of your T4A slip, box 16 or 20 of your T4RIF slip, or box 19 of your T5 slip as follows:

• If you were 65 or older on December 31, 2000, include it on line 115.
• Regardless of your age, if you received it because your spouse died, include it on line 115.
• Otherwise, report on line 130 the amount in box 24 of your T4A slip, or box 16 or 20 of your T4RIF slip. Report on line 121 the amount in box 19 of your T5 slip.

Note
If there is an amount in box 18 or 22 of your T4RIF slip, see the instructions on the back of the slip.

Pensions from a foreign country

If you were a deemed resident in 2000, report in Canadian dollars the total amount of your foreign pension income for 2000. See "How do you report foreign income and other amounts?" on page 13. Attach a note to your return,

identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income and you may have to report them elsewhere on your return.

United States individual retirement account (IRA) - If you had an IRA in 2000 and either received amounts from it or converted it to a "Roth" IRA, contact the International Tax Services Office.

Tax Tip
You can claim a deduction on line 256 for the part of your foreign pension income that is tax-free under a tax treaty. If you do not know whether any part of your foreign pension is tax-free in Canada, contact the International Tax Services Office.

United States social security - If you were a deemed resident of Canada in 2000, include on line 115 the full amount, in Canadian dollars, of your U.S. social security benefits. You can claim a deduction for part of this income. See line 256 for details.

Benefits paid for your children are their income, even if you received the payments.

⬤▲ Line 119 - Employment Insurance benefits

Enter the amount shown in box 14 of your T4E slip. If you repaid to Human Resources Development Canada excess benefits you received, you may be able to claim a deduction. See line 232 for details.

Note
If your net income before adjustments (line 234) is more than $39,000, you may have to repay some of the benefits you received. See line 235 for details.

Non-residents electing under section 217 - Your employment insurance benefits may be shown on your
NR4 slip. Make sure the income code located in box 14 or 24 agrees with the type of income reported. You will find a description of the income codes on the back of the NR4 slip.

⬤ Line 120 - Taxable amount of dividends from taxable Canadian corporations

Enter on line 120 the taxable amount of all dividends from taxable Canadian corporations, as shown in box 11 on T5 slips, box 31 on T4PS slips, box 32 on T3 slips, and in box 25 (and any related note in the "Details" area) on T5013 slips. Report on line 121 any foreign dividends you received.

How to report

Enter the taxable amount of your dividends from taxable Canadian corporations in Part I of Schedule 4. You have to report your dividends even if you did not receive an information slip. If you did not receive one, you can calculate the taxable amount of dividends you received by multiplying the dividends you actually received by 125%.

These dividends qualify for the federal dividend tax credit, which can reduce the amount of tax you pay. Complete Method B of Schedule 1 to claim this credit. See "Line 425 - Federal dividend tax credit" on page 49 for details.

Notes
Special rules apply for income from property (including shares) one family member lends or transfers to another. See "Loans and transfers of property" on page 15 for more information.

A child who was born in 1983 or later and reports certain dividends must pay a special tax, which is entered on line 424 on Schedule 1. However, he or she also can claim a deduction on line 232 for this income. For more details, see "Split income of a child under 18" on page 15.

Tax Tip
In some cases, it may be better for you to report all the taxable dividends your spouse received from taxable Canadian corporations. You can do this only if, by including the dividends in your income, you will be able to claim or increase your claim for the spousal amount (see line 303).

If you use this option, you may be able to take better advantage of the dividend tax credit. Do not include these dividends in your spouse's income when you calculate claims such as the spousal amount on line 303 or amounts transferred from your spouse on Schedule 2.

⬤ Line 121 - Interest and other investment income

Include on this line your interest from Canadian sources, such as amounts shown in box 13 of your T5 slips, and box 26 of your T5013 slips.

If you received foreign interest and dividend income, such as an amount shown in box 27 of your T5013 slips, report it on this line. See "How do you report foreign income and other amounts?" on page 13.

You also have to include interest you received in 2000 on any tax refunds. Under proposed changes, you can reduce this amount by arrears interest we charged you in the year.

Report the amounts you actually received, as well as amounts that were credited to you in the year. The interest you report depends on the type of investment and when you made it.

Notes
Special rules apply for income from most property (including money) one family member lends or transfers to another. See "Loans and transfers of property" on page 15 for more information.

Generally, when you invest your money in your child's name, you have to report the income from those investments. However, if you deposited Canada Child Tax Benefit payments into a bank account or trust in your child's name, the interest earned on those payments is your child's income.

A child who was born in 1983 or later and reports certain investment income must pay a special tax, which is entered on line 424 on Schedule 1. However, he or she also can claim a deduction on line 232 for this income. For more details, see " " on page 15.

How to report

Use Part II of Schedule 4 to list your investments, and attach to your return copies of any information slips. Generally, you report your share of interest from a joint investment based on how much you contributed to it.

Example
Karen and Pavel received a T5 slip from their joint bank account showing the $400 interest they earned in 2000. Karen had deposited $4,000 and Pavel had deposited $1,000 into the account.

Bank accounts

Report interest paid or credited to you in 2000, even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

Term deposits, guaranteed investment certificates (GICs), and other similar investments

On these investments, interest builds up over a period of time, usually longer than one year. Generally, you do not receive the interest until the investment matures, or you cash it in. For more information on Canada Savings Bonds, see "Canada Savings Bonds (CSBs)" on the next page.

The amount of income you report is based on the interest you earned during each complete investment year. For example, if you made a long-term investment on July 1, 1999, report on your return for 2000 the interest that accumulated to the end of June 2000, even if you do not receive a T5 slip. Report the interest from July 2000 to June 2001 on your 2001 return.

Note
Your investment agreement may specify a different interest rate each year. If so, report the amount on your T5 slip, even if it is different from what the agreement specifies or what you received. The issuer of your investment can tell you how this amount was calculated.

For most investments you made in 1990 or later, you have to report the interest each year, as you earn it. For information about reporting methods for investments (including CSBs) made in 1989 or earlier, call the International Tax Services Office.

Canada Savings Bonds (CSBs)

Interest on a regular interest ("R") bond is paid annually until the bond matures or you cash it in. Interest on a compound interest ("C") bond is not paid until you cash it in.

How to report

"C" bonds, Series 45 and subsequent, and all "R" bonds - Report the amount shown on the T5 slip.

"C" bonds, Series 44 (1989) - Report $10.18 for every $100 of these bonds for which you are already using the annual accrual method or for which you want to change to the annual accrual method.

If you already use the cash or receivable method for these bonds, and you want to continue reporting them using that method, you have to report the interest at least every three years. For each $100 of bonds for which you are using this method, you should have reported $32.05 on your 1992 return, $24.48 on your 1995 return, and $29.49 on your 1998 return. You do not have to report any amount for 2000.

If you cashed Series 44 "C" bonds in 2000, report the amount shown on the T600 slip minus any part of that amount that you reported in previous years. If you used the annual accrual method to report your bonds, you should have reported a total of $93.93 in previous years for each $100 of bonds. If you used the cash or receivable method, you should have reported a total of $86.02.

Tax Tip
If you bought bonds through your payroll savings plan, you can deduct any interest charges you paid to buy the bonds. See line 221 for details.

Treasury bills (T-bills)

If you disposed of a T-bill at maturity in 2000, you have to report as interest the difference between the price you paid and the proceeds of disposition shown on your T5008 slip, or account statement.

If you disposed of a T-bill before maturity in 2000, you may also have to report a capital gain or loss. For details, get the guide called Capital Gains.

Earnings on life insurance policies

Report the earnings that have accumulated on certain life insurance policies in the same way as you do for other investments. In all cases, your insurance company will send you a T5 slip. For policies bought before 1990, you can choose to report accumulated earnings annually by telling your insurer in writing that you choose to do so.

⬤▲ Line 122 - Net partnership income: Limited or non-active partners only

Enter on line 122 your share of the net income or loss from a partnership if the partnership did not include a rental or farming operation and you were either:

• a limited partner; or
• not actively involved in the partnership and not otherwise involved in a business or profession similar to that carried on by the partnership.

Report your net rental income or loss from a partnership on line 126. Report your net farming income or loss from a partnership on line 141.

If none of the above applies to you, enter your share of the partnership's net income or loss on the applicable self-employment line of your return (see lines 135 to 143).

Notes
If the partnership has a loss, the amount you can claim could be limited. For details, contact the International Tax Services Office.

A child who was born in 1983 or later and reports certain limited or non-active partnership income must pay a special tax, which is entered on line 424 on Schedule 1. However, he or she also can claim a deduction on line 232 for this income. For more details, see " " on page 15.

If you have a tax shelter, see "Tax shelters" on page 15.

How to report

• Complete Part III of Schedule 4.
• Attach to your return a T5013 slip. If you did not receive one, attach a copy of the partnership's financial statement. See lines 135 to 143 for more details.

Note
You may have to make Canada Pension Plan contributions on the net income you report on line 122. See line 310 for details.

Canadian certified feature films and productions

You may have invested in such a film or production for reasons other than to earn income from a business. If so, you can claim a deduction for capital cost allowance. For more information, including how to calculate your claim, see the back of Form T1-CP, Statement of Certified Productions, which the producer issues. File the form with your return.

⬤ Line 126 - Rental income

Generally, you report rental income payable to you in 2000. You have to include with your return a statement showing your rental income and expenses for the year. You can use Form T776, Statement of Real Estate Rentals, to help you calculate your net rental income.

Enter your gross rental income on line 160 and your net rental income or loss on line 126. If you have a loss, show the amount in brackets. If you were a member of a rental partnership, you should also include any amount in box 20 of your T5013 slip, or any amount the partnership allocated to you in its financial statements.

The guide called Rental Income contains Form T776 and more information about rental activities.

If you have a tax shelter, see "Tax shelters" on page 15.

⬤▮▲ Line 127 - Taxable capital gains

A capital gain or a capital loss occurs when you sell or dispose of property, such as real estate or shares. If you were a non-resident in 2000, or a non-resident electing under section 217, a capital gain or a capital loss occurs when you dispose of taxable Canadian property.

If the total of your gains for the year is more than the total of your losses, you have to include a percentage of the difference in your income. (For non-residents or non-residents electing under section 217, see the exception below.)

Generally, under proposed changes for 2000, you include in your income 75% of gains realized before February 28, 66.6666% of gains realized from February 28 to October 17, and 50% of gains realized after October 17. The inclusion rate you have to use for 2000 is based on these percentages and when you sold or disposed of your property. To determine your inclusion rate, and to calculate the amount to include in your income for 2000, complete Schedule 3. For more information, see the guide called .

If you realized a capital gain as a result of a mortgage foreclosure or conditional sales repossession, do not include the capital gain in income when calculating your GST/HST credit, Canada Child Tax Benefit payments, age amount (line 301), social benefits repayment (line 235), and refundable medical expense supplement (line 452). If this applies to you, contact the International Tax Services Office for more details.

When you donate capital property to a charity, we consider you to have sold the property at its fair market value. As a result, you may have to report a capital gain or loss for that property. There are special rules for donations of certain property. For details, get the guide called Capital Gains and the pamphlet called Gifts and Income Tax.

How to report

Complete the parts of Schedule 3 that apply and attach them to your return. Generally, if all of your gains or losses are shown on T3, T4PS, T5, or T5013 slips, or on a financial statement from a partnership, enter the amounts on Schedule 3 on whichever of lines 174, 291, or 5667 apply. If your securities transactions are shown on an account statement or a T5008 slip, use the information on these documents to help you complete Schedule 3. For more information about these and other capital dispositions, get the guide called Capital Gains.

If the result on line 199 on Schedule 3 is positive (a gain) enter the amount on line 127 of your return.

If you were a deemed resident in 2000 and the result on line 199 on Schedule 3 is negative (a loss) do not claim the amount on line 127 of your return. We will register it in our system. Keep track of this loss, which you can use to reduce your capital gains of other years. The "Notes" at line 253 explain how to do this.

Note
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.

Tax Tip

If you were a deemed resident in 2000, you may be able to claim a deduction for your capital gains. See line 254 for details.

Non-residents and non-residents electing under section 217 - Do not include on line 127 of your return any gain or loss from disposing of taxable Canadian property if, under a tax treaty, the gain from that disposition would be exempt from tax in Canada. Attach to your return a note stating that you have not included the gain or loss because of a tax treaty. Also, attach a completed Schedule 3 in respect of the disposition.

⬤ Line 128 - Support payments received

Enter on line 156 the total of all spousal and child support you received in 2000. Enter on line 128 only the taxable amount. For more information, get the guide called Support Payments.

Tax Tips
If the payments you received from a resident of another country are tax-free in Canada because of a tax treaty between Canada and the other country, you can claim a deduction for the payments on line 256. To find out if the payments you received are tax-free, contact the International Tax Services Office.

You may be able to claim a deduction for support income you repaid under a court order. For details, get the guide called Support Payments.

⬤▲ Line 129 - Registered retirement savings plan (RRSP) income

Enter on line 129 the total amount shown in boxes 16, 18, 20, 22, 26, 28, and 34 of all your T4RSP slips, unless your spouse made a contribution to your RRSP. See "Spousal RRSPs" on this page for more details.

Non-residents electing under section 217 - Your RRSP income may be shown in box 16 or 26 of your NR4 slip if the income code in boxes 14 or 24 of the NR4 slip contains one of these income codes, 28, 29, 30, 32, 33, or 43.

Tax Tip
Annuity payments shown in box 16 of your T4RSP slip may qualify for the pension income amount. See line 314 for more details.

Spousal RRSPs

Your spouse may have to report some or all of the RRSP income shown in box 20, 22, or 26 of your T4RSP slips if he or she contributed to any of your RRSPs in 1998, 1999, or 2000. In that case, your T4RSP slip should have yes checked in box 24, and either your spouse's name in box 38 or his or her social insurance number in box 36.

To calculate the amount from a spousal RRSP that each of you has to report, complete Form T2205, Calculating Amounts From a Spousal RRSP or RRIF to Include in Income.

Both you and your spouse should include this form with your returns. However, only the person shown as the annuitant on the T4RSP slip can claim the income tax deducted (box 30). Attach the slip to your return.

Note
If you are a non-resident electing under section 217, or if you and your spouse were living apart because of a breakdown in the relationship when you withdrew funds from your RRSP, you have to report the whole amount shown on your T4RSP slips.

For more details on RRSP income, get the guide called RRSPs and Other Registered Plans for Retirement.

Repayments under the Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)

Deemed residents - If you withdrew funds from your RRSP under the HBP before 1999, you have to repay to your RRSP, from January 1, 2000, to March 1, 2001, the amount shown on the statement we sent you. You also have to designate your repayment using line 246 of Schedule 7. Do not make the repayment to us. For more information, see "Line 6 - Repayments under the HBP and LLP" on page 27.

If you do not repay the full amount indicated on your repayment statement for 2000, you have to include on line 129 of your return the part you did not repay.

Example
Mohammed withdrew funds under the HBP in 1996. The statement he received in the fall of 2000 showed a required repayment of $800. The only RRSP contribution he made from January 1, 2000, to March 1, 2001, was for $500 on June 17, 2000. He designated it on line 246 of Schedule 7 as a repayment under the HBP, and includes $300 in his income on line 129 ($800 required repayment minus $500 repaid and designated).

If you withdrew funds from your RRSP under the LLP, you do not have to make any repayment for 2000.

For more information, including the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident, get the guide called Home Buyers' Plan (HBP) or the guide called Lifelong Learning Plan (LLP).

⬤▮▲ Line 130 - Other income

Use this line to report taxable income that is not reported anywhere else on the return. Make sure you have read the instructions for lines 101 to 129 first. Identify the type of income you are reporting in the space to the left of line 130 on your return. If you have more than one type of income, attach a note to your return giving the details.

For other amounts not listed, and to find out if an amount is taxable, contact the International Tax Services Office.

Note
Special rules apply for income from property one family member lends or transfers to another. See "Loans and transfers of property" on page 15 for more information.

Scholarship s, fellowships, bursaries, study grants, and artists' project grants

Total all the amounts you received in 2000 (box 28 of your T4A slips). Report on line 130 only the amount that is more than $500.

Under proposed changes, if you received an amount (other than an artist's project grant) for your enrollment in a program for which you can claim the education amount for 2000, (see line 323 and make sure to complete Schedule 11) report only the amount that is more than $3,000.

Note
If you received an artists' project grant, you can subtract the $500 or your expenses, whichever you prefer, but not both. However, the expenses you claim cannot be more than the grant. You cannot claim personal living expenses while at your usual place of residence.

Report prizes and awards you received as a benefit from your employment or in connection with a business. However, these are not eligible for the $500 tax-free amount. If you received a research grant, see line 104.

For more information, get Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, and Research Grants.

Lump-sum payments

Include lump-sum payments from pensions and deferred profit-sharing plans (box 18 of your T4A slips and box 22 of your T3 slips) received when leaving a plan.

In 2000, you may have received a lump-sum payment that included amounts you earned in previous years. You have to report the whole payment on line 130 of your return for 2000. However, the part that relates to amounts you earned before January 1, 1972, qualifies for a reduced tax rate. If it applies, we will apply this special tax calculation automatically and tell you the results on your Notice of Assessment or Notice of Reassessment.

Non-residents electing under section 217 - Lump-sum payments, retiring allowances and death benefits (as defined on page 21) may be shown in box 16 or 26 of your NR4 slip. Make sure the income code located in box 14 or 24 corresponds with the type of income reported. You will find a description of the income codes on the back of the NR4 slip.

Retiring allowances (severance pay)

A retiring allowance includes an amount paid as severance pay. Include the amount shown in boxes 26 and 27 of your T4A slips. Also, report any retiring allowance included in the amount in box 26 of your T3 slips. Details regarding the retiring allowance will be shown in box 36 and in the footnotes area of the slips.

Note
You may be able to deduct legal fees you paid to get a retiring allowance. See line 232 for details.

Tax Tip
You may be able to transfer part or all of your retiring allowances to your registered retirement savings plan (RRSP). See "Line 9 - Transfers" on page 28.

Death benefits (other than Canada or Quebec Pension Plan death benefits)

A death benefit is an amount you receive, after a person's death, for that person's employment service. It is shown in box 28 of your T4A slips or box 35 of your T3 slips.

You may not have to pay tax on up to $10,000 of the benefit you received. If you are the only one to receive a death benefit, report the amount you receive that is more than $10,000. Even if you do not receive all of the death benefit in one year, the total tax-free amount for all years cannot be more than $10,000. To find out what to report if anyone else also received a death benefit for the same person, contact the International Tax Services Office.

Attach to your return, a note stating the amount of death benefits you received but did not include in your income.

⬤▮▲ Lines 135 to 143 - Self-employment income

Enter on the appropriate line your gross and net income or loss from self-employment. If you have a loss, show it in brackets. Include with your return a statement showing your income and expenses.

If your fiscal period does not end on December 31, 2000, the guide called Reconciliation of Business Income for Tax Purposes will help you calculate the business income to report on your return for 2000. If you filed Form T1139, Reconciliation of 1999 Business Income for Tax Purposes, with your return for 1999, you usually have to complete the version of this form for 2000 and attach it to your return.

Notes
If you were a deemed resident in 2000, you may have to make Canada Pension Plan contributions on your self-employment earnings. See line 310 for details.

A child who was born in 1983 or later and reports certain self-employment income must pay a special tax, which is entered on line 424 on Schedule 1. However, he or she also can claim a deduction on line 232 for this income. For more details, see " " on page 15.

The following guides contain more information and forms you may need to help you calculate your self-employment income:

• Business and Professional Income (Form T2124, Statement of Business Activities, and Form T2032, Statement of Professional Activities)
• Fishing Income (Form T2121, Statement of Fishing Activities)
• Farming Income (Form T2042, Statement of Farming Activities) or Farming Income and NISA (Form T1163, Statement A - NISA Account Information and Statement of Farming Activities for Individuals, and Form T1164, Statement B - NISA Account Information and Statement of Farming Activities for Additional Farming Operations)

Notes
If you are participating in the net income stabilization account (NISA) program and you are filing a return, use the envelope contained in the guide called Farming Income and NISA.

If you use your home for day care, see the pamphlet called Using Your Home for Day Care for more information.

Generally, if you were a limited or non-active partner, you enter your net income or loss on line 122. However, if your net income or loss is from a rental operation, you enter the amount on line 126. If it is from a farming operation, enter it on line 141.

If you were an active partner and received a T5013 slip, report the amount from box 18 on the line of your return shown in box 05. This is your share of the partnership's income or loss. Also report the partnership's gross income as shown in box 29. Attach the T5013 slip to your return. If you did not receive this slip, you should attach the applicable self-employment form indicated above, or a copy of the partnership's financial statement.

For more information, contact the International Tax Services Office.

If you have a tax shelter, see "Tax shelters" on page 15.

Non-residents - This section applies to you only if you had Canadian-source business income in 2000 and the business did not have a permanent establishment in Canada. If the business had a permanent establishment in Canada, you should use another tax package. See the section on page 7 called "What if this tax and benefit package is not for you?

Non-residents and non-residents electing under section 217 - You cannot claim a loss from a business carried on in Canada if, under a tax treaty, the income from that business would be exempt from tax in Canada.

⬤ Line 144 - Workers' compensation benefits

Enter the amount shown in box 10 of your T5007 slip. Claim a deduction on line 250 for the benefits you entered on line 144.

⬤ Line 145 - Social assistance payments

Enter the amount shown in box 11 of your T5007 slip (or box A of your RL-5 slip if you were a resident of Quebec) unless you lived with your spouse at the time either of you received the social assistance payments. In that case, the spouse with the higher net income on line 236 (without including these payments, or deducting the amounts on lines 214 or 235) has to report these payments, no matter whose name is on the slip. If you and your spouse have the same net income, the person whose name is on the slip has to report the payments.

Note
You do not have to include certain social assistance payments you or your spouse received for being a foster parent or for caring for a disabled adult who lived with you. For more information, contact the International Tax Services Office. However, if the payments are for caring for your spouse or an individual related to you or your spouse, you or your spouse (whoever has the higher net income) will have to include them.

Claim a deduction on line 250 for the social assistance payments you entered on line 145.

⬤ Line 146 - Net federal supplements

Enter the amount shown in box 21 of your T4A(OAS) slip.

If your net income before adjustments (line 234) is, $53,960 or less, claim a deduction on line 250 for the net federal supplements you entered on line 146. If line 234 of your return is more than $53,960, contact the International Tax Services Office to find out how much you can deduct on line 250.