Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada – 2021 
Completing your return (Step 5)

Step 5 – Federal tax

Follow the instructions in this section to calculate your federal tax, including the federal surtax for non-residents of Canada and deemed residents of Canada.

Part A – Federal tax on taxable income

Complete the appropriate column of the chart using the amount from line 26000 of your return.

Non-residents electing under section 217

Your federal tax is based on whichever amount is more:

  • your taxable income from line 26000 of your return
  • your net world income after adjustments from line 16 of Schedule A

You may also be entitled to the section 217 tax adjustment. For more information, see
line 41450.

▮▲Schedule A, Statement of World Income

Complete and attach Schedule A to your return to report your world income. World income is income from Canadian sources and sources outside Canada. Your foreign-source income is reported only on your Schedule A.

Non-residents and non-residents electing under section 216.1

Your net world income is used to calculate your allowable federal non-refundable tax credits on Schedule B, Allowable Amount of Federal Non-Refundable Tax Credits.

Non-residents electing under section 217

Your net world income is used to calculate your allowable federal non-refundable tax credits on Schedule B, your federal tax on your return, and the section 217 tax adjustment on Schedule C, Electing under Section 217 of the Income Tax Act.

Part B – Federal non-refundable tax credits

Note

This section does not provide supplementary information for lines ●❚▲30000, ●❚▲30100, ●❚▲30425, ●❚▲30450, ●❚▲30499, ●❚▲30500, ●31215, ●❚▲31217, ●❚▲31220, ●❚▲31240, ●▲31260, ●❚▲31270, ●❚▲31285, ●❚▲31300, ●▲31400, ●❚▲31900, ●❚▲32300, ●❚▲32600, ●❚▲33199, and ●❚▲34900, as the instructions on the return or in other information products provide the information you need.

These credits reduce the federal tax you have to pay. If the total of these credits is more than the federal tax you have to pay, you will not get a refund for the difference.

Amounts you can claim

Deemed residents

You can claim all of the federal non-refundable tax credits that apply to you.

Non-residents and non-residents electing under section 217 and/or section 216.1

The federal non-refundable tax credits you can claim depend on the percentage of net world income (line 14 of Schedule A) that is included in your net income (line 23600 of your return). For more information, see the following section or Schedule B.

Note

To complete Schedule B, you must first complete Schedule A.

▮▲ Schedule B, Allowable Amount of Federal Non-Refundable Tax Credits

Complete Schedule B (Form 5013-SB, Allowable Amount of Federal Non-Refundable Tax Credits) to determine the percentage of net world income that is included in your net income and to calculate your allowable amount of federal non-refundable tax credits.

Part A – You are a non-resident (including a non-resident electing under section 216.1) not electing under section 217

If line 3 is 90% or more, you can claim all of the federal non-refundable tax credits that apply to you. Your allowable amount of federal non-refundable tax credits is the amount on line 35000 of your return.

If line 3 is less than 90%, you can claim only the federal non-refundable tax credits on lines 31600, 31900, 32300 (tuition amounts only), and 34900, if they apply to you. Your allowable amount of federal non-refundable tax credits is the total of these credits multiplied by the rate shown on Schedule B.

Part B – You are a non-resident electing under section 217

You can claim all of the federal non-refundable tax credits at Step 5 of your return that apply to you. However, your allowable amount of federal non-refundable tax credits may be limited.

If line 3 is 90% or more, your allowable amount of federal non-refundable tax credits is the amount on line 35000 of your return.

If line 3 is less than 90%, your allowable amount of federal non-refundable tax credits is whichever amount is less:

  • 15% of the eligible section 217 income, paid or credited to you in 2021 (from line 13300 of your Schedule C)
  • the total federal non-refundable tax credits you would be eligible for if you were a resident of Canada for the full year (from line 35000 of your return) minus 15% of the total of the following amounts:

⬤▮▲Canada caregiver amount

If you have a spouse, common-law partner, or dependant with an impairment in physical or mental functions, you may be able to claim the Canada caregiver amount when you calculate certain non-refundable tax credits.

For more information, see Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants.

⬤▮▲Amounts for non-resident dependants

You may be able to claim an amount for certain dependants who live outside Canada if they depended on you for support.

If the dependants already have enough income or assistance for a reasonable standard of living in the country where they live, the CRA does not consider them to be dependent upon you for support.

Note

Gifts are not considered support.

⬤▮▲Line 30300 – Spouse or common-law partner amount

Claim this amount if, at any time in the year, you supported your spouse or common-law partner and the net world income of your spouse or common-law partner was less than your basic personal amount (or your basic personal amount plus $2,295, if they were dependent on you because of an impairment in physical or mental functions). For more information, see Schedule 5.

Net world income of spouse or common-law partner

If your spouse or common-law partner was a deemed resident of Canada in 2021, their net world income is the amount from line 23600 of their return, or the amount it would be if they filed a return.

If your spouse or common-law partner was a non-resident of Canada in 2021, their net world income is their net income for 2021 from all sources both inside and outside Canada.

If you were living with your spouse or common-law partner on December 31, 2021, use their net world income for the whole year. This applies even if you got married or got back together with your spouse in 2021 or you became a common-law partner or started to live with your common-law partner again.

If you separated in 2021 because of a breakdown in your relationship and were not back together on December 31, 2021, reduce your claim only by your spouse's or common-law partner's net world income before the separation.

⬤▲Line 30800 – Base CPP or QPP contributions through employment income

CPP and QPP rates for base contributions are different. 

If you do not have to file a Revenu Québec Income Tax Return for 2021 and you contributed to:

If you have to file a Revenu Québec Income Tax Return for 2021 and you contributed to:

CPP working beneficiaries

If you are 60 to 70 years of age, employed or self-employed, and receiving a CPP or QPP retirement pension, you must make contributions to the CPP or the QPP. However, if you are at least 65 years of age but under 70 years of age, you can elect to stop contributing to the CPP or revoke a prior-year election.

For more information, see Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election, and Schedule 8 or Form RC381, whichever applies.

Making additional CPP contributions

You may not have contributed to the CPP for certain income that you earned through employment or you may have contributed less than required. This can happen if:

  • You had more than one employer in 2021
  • You had income, such as tips, that your employer did not have to withhold contributions from
  • You were in a type of employment not covered under CPP rules, such as casual employment

Generally, if the total of your CPP, QPP, or both contributions through employment, from boxes 16 and 17 of your T4 slips, is less than $3,166.45 you can contribute 10.9% on any part of the income you have not already made contributions.

The maximum pensionable earnings under the CPP for 2021 is $61,600.

Form CPT20, Election to Pay Canada Pension Plan Contributions, lists the eligible employment income that you can make additional CPP contributions on. To calculate and make additional CPP contributions for 2021, complete Form CPT20 and Schedule 8 or Form RC381,  whichever applies. 

Tax exempt employment income earned by a person registered or entitled to be registered under the Indian Act

If you are registered or entitled to be registered under the Indian Act and have tax exempt employment income, and there is no amount in boxes 16 or 17 of your T4 slips, you may be able to contribute to the CPP on this income. For more information, go to Indigenous peoples – Employer source dedutions.

Overpayment

If you do not have to file a Revenu Québec Income Tax Return for 2021 and you contributed to the CPP only:

  • Do not claim more than $2,875.95 on line 30800 of your return for your base contributions on employment income
  • Do not claim more than $290.50 on line 22215 of your return for your enhanced contributions
  • Claim any overpayment on line 44800 of your return

If you made contributions to the QPP (or the QPP and CPP), complete Form RC381 to calculate your overpayment, if any.

If you have to file a Revenu Québec Income Tax Return for 2021 and you contributed to the QPP only:

  • Do not claim more than $3,137.40 on line 30800 of your return for your base contributions on employment income
  • Do not claim more than $290.50 on line 22215 of your return for your enhanced contributions 
  • Claim any overpayment on your federal income tax and benefit return using the following instructions:
    • If you were a deemed resident of Canada, claim any overpayment on line 44800 of your return. 
    • If you were a non-resident of Canada electing under section 217, write "55520" above line 43700 on page 8 of your return and enter the overpayment amount. Add this amount to your total credits on line 48200 of your return 

If you made contributions to the CPP (or the CPP and QPP), complete Form RC381 to calculate your overpayment, if any.

Even if you contributed less than the maximums noted above, you may have an overpayment if your claim was prorated in 2021 for any of the following reasons:

  • You were a CPP participant who turned 18 or 70 years of age or received a CPP disability pension
  • You were a QPP participant who turned 18 years of age or received a QPP disability pension
  • You were a CPP working beneficiary who elected to stop paying CPP contributions or revoked an election made in a previous year
  • You are filing a return for a person who died in 2021 
Notes

If you started receiving CPP retirement benefits in 2021, your basic exemption may be prorated by the CRA.

If you contributed to a foreign employer-sponsored pension plan or a social security arrangement (other than a United States Arrangement), see Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement – Non-United States Plans or Arrangements.

Request for refund of CPP contributions

Under the Canada Pension Plan, you must ask for a refund of your CPP over-contributions no later than four years from the end of the year the overpayment occurred in.

⬤ Line 31000 – Base CPP or QPP contributions on self-employment and other earnings

Claim, in dollars and cents, the total base CPP and QPP contributions calculated on your self-employment income and other earnings. For more information, see line 22200.

⬤▲Line 31200 – Employment insurance premiums through employment

If you do not have to file a Revenu Québec Income Tax Return for 2021, claim the total of the amounts you contributed to employment insurance (EI) from box 18, and a provincial parental insurance plan (PPIP) from box 55, if applicable, of all of your T4 slips. 

If you have to file a Revenu Québec Income Tax Return for 2021 and you worked only in Quebec during the year, claim the total of the amounts from box 18 of all your T4 slips

If you worked outside Quebec and your employment income was $2,000 or more, complete Schedule 10, Employment Insurance (EI) and Provincial Parental Insurance Plan (PPIP) Premiums.

Insurable earnings

This is the total of all earnings you pay EI premiums on. These amounts are shown in box 24 of your T4 slips (or box 14 if box 24 is blank).

If your total insurable earnings are $2,000 or less, do not enter any premiums on line 31200 of your return. Instead, enter the total on line 45000 of your return.

Overpayment

You may have an overpayment of your premiums even if you contributed the maximum amount or an amount that is less than what is required for the year.

The CRA will calculate the overpayment for you. If you want to calculate your overpayment, complete Form T2204, Employee Overpayment of Employment Insurance Premiums, or complete Schedule 10 if you were a resident of Quebec who worked outside Quebec.

If you repaid some of the EI benefits that you received, do not claim the repayment on line 31200. You may be able to claim a deduction on line 23200 of your return for the benefits you repaid.

If you do not have to file a Revenu Québec Income Tax Return for 2021 and you contributed more than $889.54, claim the overpayment on line 45000 of your return. 

If you have to file a Revenu Québec Income Tax Return for 2021 and you contributed more than $664.34, claim the overpayment on line 45000 of your return. However, if you completed Schedule 10, enter the amount from line 23 of your Schedule 10 on line 45000 of your return. The overpayment on line 45000 is reduced by the PPIP premiums that you have to pay (line 31210 of your return). The part of the overpayment used will be transferred directly to Revenu Québec.

The CRA will refund the unused overpayment to you or use it to reduce your balance owing. If the difference is $1 or less, you may not receive a refund. 

Request for refund of EI contributions

Under the Employment Insurance Act, you must ask for a refund of your EI overpayment no later than three years from the end of the year the overpayment occurred in.

⬤ Line 31205 – Provincial parental insurance plan (PPIP) premiums paid

If you were considered a resident of Quebec on December 31, 2021, who worked in Quebec during the year, claim, in dollars and cents, the total of the amounts from box 55 of your T4 slips

Claim any overpayment on your Revenu Québec Income Tax Return.

If your PPIP insurable earnings are less than $2,000, do not claim any PPIP premiums on line 31205. Instead, claim this amount as an overpayment on your Revenu Québec Income Tax Return.

⬤ Line 31210 – PPIP premiums payable on employment income

If you were considered a resident of Quebec on December 31, 2021, claim, in dollars and cents, the amount from line 19 of Schedule 10 if the following two conditions apply:

  • Your employment income (including employment income from outside Canada) is $2,000 or more
  • One of your T4 slips has a province of employment other than Quebec in box 10

The maximum amount you can claim is $412.49.

⬤▮▲Line 31350 – Digital news subscription expenses

You can claim up to $500 for amounts you paid in 2021 for qualifying subscription expenses.

A qualifying subscription expense is the amount a subscriber paid in the year for a digital news subscription with a qualified Canadian journalism organisation (QCJO) that does not hold a licence to carry on a broadcasting undertaking. To qualifiy a digital news subscription must give access to digital content that is primarily written news.

Only the individuals who entered into the agreement for the subscription can claim the expenses. If you and another person can claim the same qualifying subscription expenses, you can split the claim for that digital news subscription expenses. However, the total amount of your claim and the other person's claim cannot be more than the maximum amount allowed for this credit.

Note 

A digital news subscription may also give you access to non-digital content or content that comes from a partner organization of the QCJO that is not a QCJO. Only the cost of a comparable stand-alone digital subscription to the content of the QCJO will be eligible. If there is no comparable stand-alone digital subscription, only half of the amount paid is eligible.

⬤▮▲Line 31600 – Disability amount for self

You may be able to claim the disability amount if the CRA approved your Form T2201, Disability Tax Credit Certificate, that was certified by a medical practitioner.

To be eligible, you must have had a severe and prolonged impairment in physical or mental functions during 2021.

For more information, see the Federal Worksheet.

⬤▮▲Line 31800 – Disability amount transferred from a dependant

If your dependant was a resident of Canada or a deemed resident of Canada at any time in 2021, you may be able to claim all or part of your dependant's (other than your spouse's or common-law partner's) disability amount from line 31600 of the return. 

For more information, see the Federal Worksheet.

⬤▮▲Line 32400 – Tuition amount transferred from a child or grandchild

You may be able to claim the transfer of all or part of the unused 2021 tuition amount from your child or grandchild, or their spouse or common-law partner.

The maximum amount each student can transfer to you is $5,000 minus the amount that they used to reduce their own tax payable.

The student has to complete the "Transfer or carryforward of unused amount" section of their Schedule 11, Federal Tuition, Education, and Textbook Amounts and Canada Training Credit, to transfer an amount to you. The student must also designate and transfer the amount to you using any of the following applicable forms:

If the amount being transferred to you is not shown on any of these forms, you should get a copy of the student's official tuition fee receipt and keep it in case you are asked to provide it later.

Notes

The student must enter this amount on line 32700 of their federal Schedule 11. They may choose to transfer an amount that is less than the federal unused tuition amount available to transfer.

You cannot claim this amount if the student's spouse or common-law partner claimed an amount for the student on lines 30300, 30425, or 32600 of their return. 

Only one person can claim this transfer from a student. However, it does not have to be the same parent or grandparent who claims an amount on line 30400 or line 30450 of their return for the student. 

⬤▮▲Line 33099 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2004 or later

You can claim eligible medical expenses paid in any 12-month period ending in 2021 and not claimed for 2020. Generally, you can claim all amounts paid that are more than a certain threshold, even if they were not paid in Canada. Medical expenses for other dependants must be claimed on line 33199 of your return.

Note

On the return for a person who died in 2021, a claim can be made for expenses paid on behalf of the deceased in any 24-month period that includes the date of death if they were not claimed for any other year. This also applies if you are claiming expenses paid for a dependant who died in the year.

You can claim, on line 33099 of your return, the total eligible medical expenses that you or your spouse or common-law partner paid for each of the following persons:

  • yourself
  • your spouse or common-law partner
  • your or your spouse's or common-law partner's children under 18 years of age at the end of the year
Eligible medical expenses

The most common eligible medical expenses are:

  • payments to a medical doctor, dentist, nurse, or certain other medical professionals or to a public or licensed private hospital
  • payments for prescription drugs, artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, and certain prescription medical devices
  • premiums paid to private health services plans (other than those paid by an employer, such as the amount from box J of your Quebec Relevé 1 slip)
  • premiums paid under a provincial or territorial prescription drug plan, such as the Quebec Prescription Drug Insurance Plan and the Nova Scotia Seniors' Pharmacare Program (amounts or premiums paid to provincial or territorial government medical or hospitalization plans are not eligible)
  • certain cannabis products purchased for a patient for medical purposes
  • certain expenses incurred for an animal specially trained to assist a patient in coping with any of the following impairments:
    • blindness
    • profound deafness
    • severe autism
    • severe diabetes
    • severe epilepsy
    • a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs
    • a severe mental impairment, if the animal is specially trained to do specific tasks (excluding the provision of emotional support)

These expenses include such things as the cost of the animal, care and maintenance of the animal (including food and veterinary care), reasonable travel expenses for the patient to attend a facility that trains individuals in the handling of these service animals, and reasonable board and lodging for full-time attendance at the facility. The special training of the animal has to be one of the main purposes of the person or organization that provides the animal.

For more information about medical expenses you can claim, including reimbursement and travel expenses, go to Lines 33099 and 33199 – Eligible medical expenses you can claim on your tax return or use the CRA's Tax Information Phone Services. You can also see Guide RC4065, Medical Expenses, and Income Tax Folio S1-F1-C1, Medical Expense Tax Credit.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: