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ARCHIVED - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada - 2001

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

You can use it for research or reference.

5013-G

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 2001 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 2002, which we will show on your Notice of Assessment for 2001. See line 208 for details.

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

Note
 If you were a deemed resident and you participated in a foreign pension plan in 2001, you may have to enter an amount on this line. For details, contact the International Tax Services Office.

⬤▲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 the International Tax Services Office to find out how much you can deduct if any of the following applies:

Receipts - Other than your T4 and T4A slips, do not include your receipts with your return, but keep them in case we ask to see them.

Note
 You cannot deduct contributions you made to pension plans in other countries, with two exceptions. Under the Canada-France Income Tax Convention and the Canada-Netherlands Income Tax Convention, you may be able to deduct contributions to a pension plan. If you have contributed to a pension plan in either France or the Netherlands, contact the International Tax Services Office to find out if you can deduct the amount.

⬤▮▲Line 208 - RRSP deduction

This section gives general information on registered retirement savings plans (RRSPs). If you need more information after reading this section, get the RRSPs and Other Registered Plans for Retirement guide. For information about Schedule 7, see the next page.

Receipts - Attach to your return your official receipts for all amounts you contributed from March 2, 2001, to March 1, 2002, including those you are not deducting on your return for 2001 and those you are designating as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments. See "Lines 6 and 7 - Repayments under the HBP and LLP" for details about HBP and LLP repayments. If you contributed to your spouse or common-law partner's plan, the receipt has to show your name as the contributor and your spouse or common-law partner's name as the annuitant. Also attach Schedule 7 if you have to complete it.

Maximum contributions you can deduct

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

Notes
 After the end of the year you turn 69, you cannot contribute to your RRSP, and neither can your spouse or common-law partner. However, you still can contribute to your spouse or common-law partner's RRSP until the end of the year he or she turns 69, and deduct those contributions as long as you still have an RRSP deduction limit that you have not used.

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, 7, 10, and 11.

Line 1 - Unused RRSP contributions

This is the total of all contributions to your own RRSP or to an RRSP for your spouse or common-law partner 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 2000.

If you do not have your notice, you can find out if you have unused RRSP contributions by using our automated T.I.P.S. (RRSP deduction limit) services or by calling the International Tax Services Office.

Note
 If you made RRSP contributions from March 1, 2000, to March 1, 2001, that you did not deduct on your 2000 return, you should have filed a completed Schedule 7 with your 2000 return. If you did not, you should submit your receipts and a completed copy of a 2000 Schedule 7 to the International Tax Services Office, but not with your return for 2001. See "How do you change a return?" for details. However, if you made a contribution from January 1, 1991, to February 29, 2000, and you did not show it on a Schedule 7 for 1999 or earlier, contact the International Tax Services Office.

Lines 2 and 3 - Total RRSP contributions

This total includes amounts you:

Make sure you include on these lines any contributions you made from January 1, 2002, to March 1, 2002, even if you are not deducting them on your return for 2001. 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:

Lines 6 and 7 - Repayments under the HBP and LLP

If you withdrew funds from your RRSP under the Home Buyers' Plan (HBP) before 2000, you have to make a repayment for 2001. If you withdrew funds from your RRSP in 1999, 2000, or 2001 under the Lifelong Learning Plan (LLP) you can make a repayment for 2001 if you want, but generally you do not have to.

You make HBP or LLP repayments for 2001 by contributing to your own RRSP from January 1, 2001, to March 1, 2002, and designating them using line 6 or 7 on Schedule 7. Do not include amounts you deducted or designated as repayments on your 2000 return, or that were refunded to you. You cannot deduct any RRSP contribution you designate as an HBP or LLP repayment on Schedule 7. Do not make repayments to us.

Note
 If you have not repaid the amount indicated on your Notice of Assessment or Notice of Reassessment or on your HBP statement of account on or before March 1, 2002, (and designated it on your Schedule 7 for 2001) you have to include this amount in income. See line 129 for details.

Make sure you complete the "2001 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 or common-law partner 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 Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) guides include more information about:

Non-residents and non-residents electing under section 217 - If you ceased to be a resident of Canada after you withdrew an amount under the LLP, or after you bought or built a qualifying home with funds you withdrew under the HBP, you should have repaid the amount to us by now. If not, you should contact the International Tax Services Office.

Line 10 - Contributions based on your RRSP deduction limit for 2001

Your RRSP deduction limit for 2001 is shown on your Notice of Assessment or Notice of Reassessment for 2000, or, if we sent you one, on Form T1028, Your RRSP Deduction Limit Statement for 2001. 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 2001 by using our automated T.I.P.S. (RRSP deduction limit) services or by contacting the International Tax Services Office.

If you would like to calculate your RRSP deduction limit for 2001, get the RRSPs and Other Registered Plans for Retirement guide.

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 11 - Transfers

You may have reported income on line 115, 129, or 130 of your return for 2001. If you contributed certain types of this income to your own RRSP on or before March 1, 2002, you can deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your "RRSP deduction limit for 2001."

For example, if you received a retiring allowance in 2001, 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 RRSPs and Other Registered Plans for Retirement guide has more information about amounts you can transfer.

Non-residents and non-residents electing under section 217 - You can transfer certain Canadian-source amounts otherwise subject to withholding tax to a registered retirement savings plan (RRSP), a registered pension plan (RPP), or a registered retirement income fund (RRIF) without having tax withheld. These amounts include payments out of an RPP, deferred profit-sharing plan, a RRIF, an RRSP, or a retiring allowance. The transfers have to be direct transfers, and you have to complete Form NRTA1, Authorization for Non-Resident Tax Exemption . For more information, contact the International Tax Services Office.

⬤▮▲Line 209 - Saskatchewan Pension  Plan deduction

You can deduct contributions to the Saskatchewan Pension Plan (SPP) for 2001, up to whichever of the following three amounts is least:

Receipts - Attach your receipts to your return.

⬤▲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 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 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).

Receipts - Do not include your receipts (other than your T4 slips) with your return, but keep them in case we ask to see them.

⬤▮▲Line 214 - Child care expenses

You or your spouse or common-law partner may have paid for someone to look after your child so one of you could earn income, go to school, or conduct research in 2001. The expenses are deductible only if, at some time in 2001, the child was under 16 or had a mental or physical infirmity. Generally, only the spouse or common-law partner with the lower net income (even if it is zero) can claim these expenses.

For more information, and to make your claim, get Form T778, Child Care Expenses Deduction for 2001 . However, if you claimed child care expenses on your 2000 return, the package we mailed to you should include this form.

Non-residents and non-residents electing under section 217 - You can only deduct child care expenses if you meet the criteria outlined on Form T778 and the expenses were paid to a resident of Canada for services provided in Canada.

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 the Information Concerning People With Disabilities guide for details about different amounts you may be able to claim.

Receipts - Attach to your return a completed Form T778, but not your receipts. Keep them in case we ask to see them.

⬤Line 215 - Attendant care expenses

If you can claim the disability amount (line 316 on Schedule 1) you can claim expenses you paid for personal attendant care that allowed you to go to school or to earn certain income. This includes income from employment or self-employment and a grant you received for conducting research.

Tax Tip
See the Information Concerning People With Disabilities guide for 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. You can also contact the International Tax Services Office.

Receipts - Do not include your receipts or Form T929 with your return, but 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 lines 217 and 228 (to the left of line 217) get the Capital Gains guide.

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

Non-residents and non-residents electing under section 217 - A business investment loss applies to you only if the loss arises from property that would have been taxable to you in Canada.

⬤▮▲Line 219 - Moving expenses

Deemed residents - Generally, if you moved at least 40 kilometres in 2001 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 . Make sure you tell us your new address.

How to claim

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

Note
 If you moved in 2000 but could not claim all your moving expenses in that year, you may be able to claim the remaining expenses against income you earned in 2001 at the new location.

Non-residents and non-residents electing under section 217 - You can only deduct moving expenses if you were a full-time student during 2001. If this is your situation, contact the International Tax Services Office for the special rules that apply to you.

Receipts - Do not include your receipts or Form T1-M with your return, but keep them in case we ask to see them.

⬤▮▲Line 220 - Support payments made

Enter on line 230 the total of all support payments you made in 2001 for a spouse, common-law partner, or child. Enter on line 220 only the deductible amount. For more information, get the Support Payments guide.

You probably have to register your written agreement or court order (including any amendments) with us. For more information, get Form T1158, Registration of Family Support Payments .

Receipts - Do not include your receipts or cancelled cheques, or your court order or written agreement with your return. 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:

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

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 2001 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, 2002.

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 2001, 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 return, but keep them in case we ask to see them.

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

Line 222 - Deduction for CPP or QPP contributions on self-employment and other earnings

You can claim, on this line, half of the total of your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, if any, from Schedule 8. You also can claim, on line 310 on Schedule 1, an amount for the other half. You can claim contributions you:

The amount of CPP or QPP contributions that you have to make, or choose to make, will depend on how much you have already contributed to the CPP or QPP as an employee, as shown in boxes 16 and 17 of your T4 slips.

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:

Generally, if the total of your CPP and QPP contributions through employment, as shown in boxes 16 and 17 of your T4 slips, is less than $1,496.40, you can contribute 8.6% on any part of the income on which you have not already made contributions. The maximum income for 2001 for which you can contribute to the CPP is $38,300. Making additional contributions may increase the pension you receive later.

To make additional CPP contributions for 2001, get Form CPT20, Election to Pay Canada Pension Plan Contributions . Attach a completed copy to your return, or send it to us separately on or before June 15, 2003. This form lists the eligible employment income on which you can make additional CPP contributions.

How to calculate your contributions

Complete Schedule 8 to calculate your CPP or QPP contributions, and attach it to your return. If you were a member of a partnership, make sure you include on line 1 of Schedule 8 only your share of the net profit or loss. You cannot use self-employment or partnership losses to reduce the CPP or QPP contributions that you paid on your employment earnings.

If you do not have to file a return for the province of Quebec, enter on lines 222 and 310, in dollars and cents, the amount from line 11 of Schedule 8. Enter on line 421 the amount from line 10 of Schedule 8.

If you do have to file a return for the province of Quebec, enter on lines 222 and 310, in dollars and cents, the amount from line 10 of Schedule 8. Line 421 does not apply to you.

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 2001, you:

⬤▮▲Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 2001, 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

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 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 International Tax Services Office.

⬤▲Line 229 - Other employment expenses

You can deduct certain expenses (including any 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 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 Employment Expenses guide 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 2001 or a previous year, if you repaid them in 2001. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers' compensation 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 - Attach a completed Form T777 to your return, but not your receipts or other forms. 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).

⬤▲Line 231 - Clergy residence  deduction

If you are a cleric, use this line to claim a deduction for your residence. Your employer now has to certify that you qualify for this deduction. In addition, the way you calculate it has changed. Complete Form T1223, Clergy Residence Deduction, to find out what you can deduct. Do not include Form T1223 with your return, but keep it in case we ask to see it.

⬤▮▲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, specify 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 return.

For other amounts not listed, contact the International Tax Service Office, or you use our T.I.P.S. (Info-Tax) services.

Note
 A child who was born in 1984 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".

Income amounts paid back

In 2001, you may have paid back amounts that you received and included in income for 2001 or a previous year. If so, you can deduct these amounts on line 232 of your return for 2001. Attach to your return receipts or other documents showing the amounts you paid back, such as a T4A (OAS) slip that shows in box 20 any Old Age Security benefits you repaid.

Notes
Deemed residents - If you had an OAS repayment for 2000, tax may have been withheld from your OAS benefits for 2001. The amount deducted is included in box 22 of your T4A(OAS) slip for 2001. Do not deduct it on line 232. 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 Federal Worksheet included in the centre of this guide.

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:

Legal fees

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

You have to reduce your claim by any award or reimbursements you received for these expenses. If you are awarded the cost of your deductible legal fees in a future year, you will have to include that amount in your income for that year. In addition, you cannot claim legal costs you incurred to:

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 2001 if there is an amount in box 15 of your T4E slip and your net income before adjustments (line 234) is more than $48,750.

Complete the chart included with your T4E slip to calculate how much of your EI benefits you have to repay.

Deemed residents - If you also have to repay Old Age Security (OAS) benefits you received (see below) enter the EI benefits that you have to repay on lines 7 and 13 of the chart for line 235 on the Federal Worksheet in this guide.

Old Age Security (OAS) benefits

Deemed residents - 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 $55,309. Complete the chart for line 235 on the Federal Worksheet in this guide to calculate how much you have to repay, even if tax was withheld by Human Resources Development Canada.

Non-residents and non-residents electing under section 217 - If you received OAS pension or net federal supplements in 2001 and you are required to file an Old Age Security Return of Income, do not complete the chart for line 235 on the Federal Worksheet. Instead, enter on line 235 the amount from line 235 of your Old Age Security Return of Income .

Notes
Deemed residents - If you had an OAS repayment for 2000, tax may have been withheld from your monthly OAS pension for 2001. The amount deducted is included in box 22 of your T4A(OAS) slip for 2001. Claim it on line 437. Similarly, if you have an OAS repayment for 2001, tax may be withheld starting with your July 2002 OAS payment.

Non-residents and non-residents electing under section 217 - Do not claim on line 437 of this return any recovery tax deducted from your OAS benefits. Instead, you should claim it on your Old Age Security Return of Income .

For more details, contact the International Tax Services Office.

Line 236 - Net income

We use this information in calculating amounts such as the Canada Child Tax Benefit, the GST/HST credit, the social benefits repayment, and certain non-refundable tax credits.

Notes
 Make sure you enter, if it applies, your spouse or common-law partner's net world income in the "Information about your spouse or common-law partner" area on page 1 of your return. Enter this amount even if it is zero.

If the amount on line 236 is negative, you may have a non-capital loss. To find out, complete Form T1A, Request for Loss Carryback . If you have a loss for 2001, you may want to carry it back to your 1998, 1999, or 2000 return. To do this, attach a completed Form T1A to your return. Do not file an amended return for the year or years to which you want to apply the loss.

Non-residents and non-residents electing under section 217 - Contact the International Tax Services Office for the special rules regarding loss carrybacks that apply to you.

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