Federal Income Tax and Benefit Guide - 2020 - Provincial or territorial, refund or balance owing, and other information

Step 6 – Provincial or territorial tax

If you were not a resident of Quebec on December 31, 2020, complete Form 428 to calculate your provincial or territorial tax.

If you were a resident of Quebec on December 31, 2020, this line applies to you only if you had income from a business (including income you received as a limited or non-active partner) and the business has a permanent establishment outside Quebec. In that case, use Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, to calculate your tax for provinces and territories other than Quebec. To calculate your tax for Quebec, you will have to file a provincial income tax return for Quebec.

Step 7 – Refund or balance owing

Claim the amounts that apply to you on lines 42000 to 48200 using your information slips along with the instructions provided in Step 7 of your return, and on any applicable worksheet, schedule, and form. In this section, you will find information you may need to supplement the instructions on the return.

This section does not provide supplementary information for lines 42000, 42100, 42120, 42200, 43200, 44800, 45300, 45400, 45600, and 45700 as the instructions on the return or in other information products provide the information you need.

Line 43700 – Total income tax deducted

Find your situation and follow the instructions that apply to you.

Resident of a province other than Quebec on December 31, 2020 Resident of the province of Quebec on December 31, 2020

Claim the total of the amounts shown in the “Income tax deducted” box of all your Canadian information slips.

If applicable, claim the total of the amount of tax determined on Form T1032, Joint Election to Split Pension Income.

If you had Quebec provincial income tax withheld from your income, include those amounts on this line.

Claim the total of the amounts shown in the “Income tax deducted” box of all your Canadian information slips.

If applicable, claim the total of the amount of tax determined on Form T1032, Joint Election to Split Pension Income.

Do not include on this return any of your Quebec provincial income tax deducted. Instead, claim it on your provincial income tax return for Quebec.

Line 43800 – Tax transfer for residents of Quebec

If you were a resident of Quebec on December 31, 2020, and you earned income, such as employment income, outside Quebec during the year, tax may have been deducted for a province or territory other than Quebec. Enter on line 43800 of your federal return the transfer amount (up to the maximum) and claim the same amount on line 454 of your provincial income tax return for Quebec.

You can transfer to the Province of Quebec up to 45% of the income tax shown on information slips issued to you by payers outside Quebec.

Notes

If you and your spouse or common-law partner jointly elected to split pension income, your calculation of the transfer for line 43800 may be impacted. If you are the one receiving the transfer (amount reported on line 11600 of your return), you can include the income tax added on line 43700 of your return relating to the split-pension amount in your calculation of the transfer for line 43800.

If you are the one doing the transfer (claiming a deduction on line 21000 of your return), do not include the corresponding income tax transferred to your spouse or common-law partner on line 43700 of their return in the calculation of the transfer for line 43800.

Line 44000 – Refundable Quebec abatement

If you were a resident of Quebec on December 31, 2020, and you did not have a business with a permanent establishment outside Quebec, calculate your abatement.

If one of the following applies to you, complete Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, to calculate your abatement:

  • you had income from a business (including income you received as a limited or non-active partner) and the business has a permanent establishment outside Quebec
  • you were not a resident of Quebec on December 31, 2020, and the business has a permanent establishment in Quebec

Line 45000 – Employment insurance overpayment

If you were not a resident of Quebec on December 31, 2020, and contributed more than you had to (see line 31200), claim the difference on line 45000. The CRA will refund the excess contribution to you or use it to reduce your balance owing. If the difference is $1 or less, you might not receive a refund.

Note 

If you repaid some of the (EI) benefits overpayment you received, do not claim the repayment on line 45000. You may be able to claim on your return a deduction on line 23200 for the benefits you repaid.

If you were a resident of Quebec on December 31, 2020, and contributed more than you had to (see line 31200), claim the difference on line 45000. If you completed Schedule 10, enter, in dollars and cents, the amount from line 25 on line 45000. The excess contribution on line 45000 is reduced by the provincial parental insurance plan premiums that you have to pay (line 31210 of the return). The part of the excess contribution used will be transferred directly to Revenu Québec. We will refund the unused excess contribution to you or use it to reduce your balance owing. If the difference is $1 or less, you might not receive a refund.

Note

If you repaid some of the EI benefits you received, do not claim the repayment on line 45000. You may be able to claim a deduction on line 23200 for the benefits you repaid.

Line 45200 – Refundable medical expense supplement

You may be able to claim a credit of up to $1,272 if all the following apply:

  • You have an amount on line 21500 or line 33200 of your return
  • You were resident in Canada throughout the year
  • You were 18 years of age or older at the end of 2020
  • The total of the following two amounts is $3,714 or more:
    • your employment income on lines 10100 and 10400 of your return (other than amounts received from a wage-loss replacement plan), minus the amounts on lines 20700, 21200, 22900, and 23100 of your return (but if the result is negative, enter “0”)
    • your net self-employment income (not including losses) from lines 13499 to 14300 of your return

Note

If you have income from more than one business reported on one specific self-employment line (13500, 13700, 13900, 14100, or 14300) and you are reporting a profit from one business and a loss from another, use only the profit amounts when determining if you meet the income requirement (noted above) to be eligible for this credit. Otherwise, if you are reporting a loss from only one business at one of these lines, do not include that loss.

NewLine 45350 – Canada training credit (CTC)

You can claim the CTC for eligible tuition and other fees paid to an eligible educational institution in Canada for courses you took in 2020, or fees paid to certain bodies, in respect of an occupational, trade or professional examination taken in 2020, if all of the following apply:
  • You were resident in Canada for all of 2020
  • You were at least 26 years old and less than 66 years old at the end of the year
  • You have a Canada training credit limit (CTCL) for 2020 on your latest notice of assessment or reassessment for 2019

You can claim up to whichever of the following is less:

  • half of the fees claimed on line 32000 of your federal Schedule 11 
  • your CTCL for 2020

Complete Schedule 11 to calculate your credit. The CTC that you claim will reduce your CTCL for future years. For more information on the CTCL, see Guide P105, Students and Income Tax.

Lines 46800 and 46900 – Eligible educator school supply tax credit

If you were an eligible educator, you can claim up to $1,000 as an eligible supplies expense.

Eligible educator

You are considered an eligible educator if you were employed in Canada at any time during the 2020 tax year and both of the following conditions are met:

  • You were a teacher at an elementary or secondary school, or an early childhood educator at a regulated child care facility
  • You held a teaching certificate, licence, permit or diploma, or a certificate or diploma in early childhood education, which was valid and recognized in the province or territory in which you were employed

Eligible supplies expense 

An eligible supplies expense is an amount that you paid in 2020 for teaching supplies that meet all of the following conditions:

  • You bought the teaching supplies for teaching or facilitating students’ learning
  • The teaching supplies were directly consumed or used in an elementary or secondary school or in a regulated child care facility in performing your employment
  • You were not entitled to a reimbursement, allowance, or any other form of assistance for the expense (unless the amount is included in the calculation of your income of any tax year and is not deductible in the calculation of your taxable income)
  • The eligible teaching supplies expense was not deducted from any person’s income for any year or included in calculating a deduction from any person’s tax payable for any year

Teaching supplies are consumable supplies and prescribed durable goods. Prescribed durable goods include:

  • books, games and puzzles
  • containers (such as plastic boxes or banker boxes)
  • educational support software

Note

The CRA may ask you later to provide a written certificate from your employer or a delegated official of the employer (such as the principal of the school or the manager of the child care facility) attesting to the eligibility of your expenses for the year.

NewLine 47555 – Canadian journalism labour tax credit (CJLTC)

If you were a member of a partnership that was a qualifying journalism organization in 2020, you can claim the CJLTC allocated to you by the partnership. The amount that you can claim is shown in box 236 of your T5013 slip for 2020.

Note

If you were a member of a partnership that was a qualifying journalism organization in 2019, you can claim the CJLTC allocated to you by the partnership for 2019. To claim this credit, request a reassessment to your 2019 tax return. The amount that you can claim is shown in a letter that the partnership gave you. Attach a copy of this letter with your request for a reassessment.

Line 47600 – Tax paid by instalments

In February 2021, the CRA will send you Form INNS1, Instalment Reminder, or Form INNS2, Instalment Payment Summary, which shows your total payments for 2020 that the CRA has on record.

If you made an instalment payment for your taxes for 2020 that does not appear on this reminder or summary, also include that amount on line 47600 of your return.

Line 47900 – Provincial or territorial credits

If you were a resident of Ontario, Manitoba, British Columbia, Yukon, the Northwest Territories, or Nunavut on December 31, 2020, complete Form 479 to calculate your refundable provincial or territorial credits.

If you were a resident of Nova Scotia or Prince Edward Island, complete Form 428 to calculate the Nova Scotia volunteer firefighters and ground search and rescue tax credit or the Prince Edward Island volunteer firefighter tax credit and enter the amount on line 47900 of your return.

If you were a resident of Alberta, complete Form 428 to claim your unused Alberta investor tax credit. To claim the Alberta stock savings plan tax credit, complete Form T89, Alberta Stock Savings Plan Tax Credit, and include the amount on Form 428. Claim both amounts on line 47900 of your return.

To claim the Newfoundland and Labrador research and development tax credit, complete Form T1129, Newfoundland and Labrador Research and Development Tax Credit (Individuals).

How to pay your balance owing or to get your refund

Line 48400 – Refund

Direct deposit

Direct deposit is a fast, convenient, and secure way to get your CRA payments directly into your account at a financial institution in Canada.

For more information and ways to enrol, go to Direct deposit - Canada Revenue Agency.

Line 48500 – Balance owing

Your balance owing is due no later than April 30, 2021. Do not mail cash or include cash with your return. The CRA will charge daily compound interest on any outstanding balance starting May 1, 2021, until you pay your balance in full.

You can pay your balance owing using one of the following methods:

  • pay online by using your financial institution’s services
  • pay online by using the CRA’s My Payment service at Pay now with My Payment
  • pay by setting up a pre-authorized debit agreement using My Account at My Account for Individuals
  • credit card, e-transfer or PayPal through a third-party service provider
  • pay in person, with cash or by debit, at any Canada Post outlet across Canada for a fee. To do so you will need a remittance voucher with a QR code or a self generated QR code. For more information, go to Payments to the Canada Revenue Agency
  • pay in person at your financial institution in Canada. To do so, you have to use a remittance voucher, which you can ask for in My Account at My Account for Individuals or by contacting the CRA

If you can’t pay your taxes by April 30, 2021, go to When you owe money – collections at the CRA to learn more about managing your tax debt, or see Information Circular IC98-1R7, Tax Collections Policies.

For more information, go to Payments to the Canada Revenue Agency.

What documents to attach to your paper return

When you are filing your paper return, attach the supporting documents that are requested below in the following charts. If you make a claim without the requested supporting document, the CRA may disallow the credit or deduction you claimed. It could also delay the processing of your return.

Did you know

Did you know...

Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep your supporting documents for six years in case the CRA selects your return for review. Also, keep a copy of your return, the related notice of assessment, and any notice of reassessment.

Documents required to support reported income
Item or line number Send the following documents with your paper return:
Information slips One copy of each of your information slips, such as T4, T4A, T5, including if applicable, provincial slips such as the Relevé 1 slip
Missing information slips A copy of your pay stubs or statements for each missing slip. Keep the original documents. Also, attach a note stating the payer’s name and address, the type of income involved, and what you are doing to get the slip
Forms and schedules Each form and schedule that instructs you to attach it or send it with your return
Line 10400 – Other employment income A list of your expenses relating to research grants
Line 11400 – CPP or QPP benefits A letter from Service Canada showing the amount of a lump-sum benefit you received that applies to previous years
Line 11500 – Other pensions and superannuation A note identifying the type of pension from a foreign country you received and the country it came from
Line 12200 – Net partnership income: limited or non-active partners only A copy of the partnership’s financial statement if you did not receive a T5013 slip
Line 12600 – Rental income Form T776 or a statement showing your rental income and expenses
Line 13000 – Other income  

Attach a note:

 

  • if you have more than one type of income, to specify the type of income you are reporting
  • stating any death benefit (other than CPP or QPP) amount you received but did not include in your income

 

Lines 13499 to 14300 – Self-employment income A copy of the applicable self-employment form or the partnership’s financial statement showing your income and expenses
Documents required to support deductions and credits claimed
Item or line number Send the following documents with your paper return:
Information slips One copy of each of your information slips, such as T4, T4A, T5, including if applicable, the provincial slips such as the Relevé 1 slip
Missing information slips A copy of your pay stubs or statements if you do not have your information slip. Keep the original documents. Also, attach a note stating the payer’s name and address, the type of income involved, and what you are doing to get the slip.
Forms and schedules Each form and schedule that mentions to attach it or send it with your return
Line 20800 Your official receipts for all amounts you contributed from March 2, 2020, to March 2, 2021, including those you are not deducting on your return for 2020 and those you are designating as Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) repayments
Line 22400 – Exploration and development expenses Information slips such as a T5, T101, or T5013. If you do not have these slips, get a statement identifying you as a participant in the venture. The statement has to 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.
Line 23200 – Other deductions

A note, if you are deducting more than one amount, to specify the deduction you are claiming or to explain it more fully

Form RC4625 or a letter from the Registered Disability Savings Plan (RDSP) issuer
Line 25100 – Limited partnership losses of other years A statement showing a breakdown of your total losses, the year of each loss, and the amounts claimed in previous years
Line 25600 – Additional deductions A note, if you have more than one amount, to specify the deduction you are claiming or to explain it more fully
Step 5 – Federal tax
If you claim an amount for a non-resident dependant
The proof of payments of support showing your name, the amount and the date of the payment, and the dependant’s name and address. If you sent the payments to a guardian, the guardian’s name and address must also be on the proof of payment.
Line 31800 – Disability amount transferred from a dependant A note stating the dependant’s name, social insurance number, and relationship to you, if you are not attaching a Form T2201.
If you are splitting the unused part of this amount with another person, attach a note to your paper return that includes the name and social insurance number of the other person who is claiming this amount.
Lines 40900 and 41000 – Federal political contribution tax credit Attach your official receipts except for those with amounts shown in box 14 of your T5003 slips, in box 184 of your T5013 slips, or on financial statements showing an amount a partnership allocated to you.
Line 45700 – Employee and partner GST/HST rebate Form GST370, Employee and Partner GST/HST Rebate Application
Line 48400 – Refund A note, if you want the CRA to transfer your refund to your instalment account for 2021

After sending your return

Notice of assessment

You will receive a notice of assessment after the CRA processes your return. The notice gives you a summary of your assessment and explanations of any changes made to your return. The notice will tell you if you have a refund, owe money, or have a zero balance. It also gives you other important information, including but not limited to, your unused RRSP, PRPP and SPP contributions, your RRSP deduction limit, your Canada training credit limit, and other amounts and balances that you may want to carry forward to a future year.

Processing time

The CRA’s goal is to send you a notice of assessment, as well as any refund, within:

  • two weeks, when you file online
  • eight weeks, when you file a paper return
When the CRA receives your return, it is usually processed and a notice of assessment is sent to you. However, each year the CRA conducts a number of reviews to promote awareness of and compliance with the laws that the CRA administers.
This means that your return may be selected for a more detailed review before or after assessing it. If you receive a letter or a phone call telling you that your return is being reviewed, don't panic. It’s important to know that a review is not a tax audit. In most cases, it’s simply a routine check to ensure that the information you provided on your return is correct.
If you receive a request from the CRA asking for documents or receipts, you should reply within the timeframe provided. Make sure you include all the information the CRA is asking for, and that the copies of your documents are clear and easy to read.
And remember, the CRA is here to help you. If you can’t get the documents the CRA is asking for, have any questions, or if you need more time to reply, let the CRA know. If you don’t reply to the CRA’s request, the CRA may adjust your return and your claim or deduction might be disallowed.
 
For more information, go to Income tax review? You’ve got this!.

How to change a return

If you have more information that would change a return you have already sent to the CRA, do not file another paper return for that year. Wait until you receive your notice of assessment before asking for changes.

Generally, you can only request a change to a return for a tax year ending in any of the 10 previous calendar years. For example, a request made in 2021 must relate to the 2011 or a later tax year to be considered.

You can change your return by:

Note

If the CRA has assessed your taxes owing for a year for which you did not file a tax return, you must file a paper return for that year if you want to make a change.

For more information, go to How to change your return.

For more information, go to How to change a return.

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the Canada Revenue Agency (CRA); see the Taxpayer Bill of Rights.

If you are not satisfied with the service you received, try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the CRA’s correspondence. If you do not have contact information, go to Contact the Canada Revenue Agency.

If you still disagree with the way your concerns were addressed, you can ask to discuss the matter with the employee’s supervisor.

If you are still not satisfied, you can file a service complaint by filling out Form RC193, Service Feedback. For more information and how to file a complaint, go to canada.ca/cra-service-feedback.

If the CRA has not resolved your service complaint, you can submit a complaint with the Office of the Taxpayers’ Ombudsperson.

Formal disputes (objections and appeals)

You can file a formal dispute or objection if you think the CRA misinterpreted the facts of your tax situation or applied the tax law incorrectly.

For more information about objections or formal disputes, go to Service feedback, objections, appeals, disputes, and relief measures.

Reprisal complaints

If you have previously submitted a service-related complaint or requested a formal review of a CRA decision and feel that, as a result, you were not treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint.

For more information about complaints and disputes, go to Service feedback, objections, appeals, disputes, and relief measures.

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