Adults 65 years and older
Before you start
The most common income sources for adults 65 years and older are:
- old age security
- pension or superannuation
Some of the most common tax slips an adult 65 years or older may bring to a tax clinic include:
- T4A(OAS), Statement of Old Age Security (includes the guaranteed income supplement amounts)
- T4A(P), Statement of Canada Pension Plan Benefits (CPP) or Quebec Pension Plan (QPP) payments
- T4A, Statement of Pension, Retirement, Annuity, and Other Income
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Need to know
A T4A(OAS) indicates the amount of old age security pension and net federal supplements, if applicable, received by an individual in the calendar year.
Old Age Security pension is a taxable federal pension paid every month to individuals aged 65 and over who meet the Canadian legal status and residence requirements.
The amount of taxable pension paid is shown in box 18. This slip indicates that the individual received $6,000 of taxable pension.
Text version
T4A (OAS) – Statement of Old Age Security
Protected B
Box 18: Taxable pension paid: 6,000.00 is highlighted
Box 21: Net supplements paid: 8,500.00
The Guaranteed Income Supplement, or GIS, is a monthly non-taxable benefit provided to old age security (OAS) recipients who have a modest income and live in Canada. Other residency criteria and income threshold requirements must also be met.
GIS and OAS benefits are adjusted quarterly based on the consumer price index (CPI). Annual renewal is generally automatic, as long as the federal income tax return is filed on time.
The amount received in the year is included in box 21, under Net supplements paid.
The slip in this example indicates that the individual has received $8,500 of net federal supplements.
The Allowance is also a monthly non-taxable benefit. It is available to individuals aged 60 to 64 who have a modest income, are the spouse or common-law partner of a guaranteed income supplement recipient and live in Canada. Other residency criteria and income threshold requirements must also be met. The amount received will also appear in box 21, under Net supplements paid.
The Allowance for the Survivor is another non-taxable benefit available to individuals aged 60 to 64 who have a modest income, live in Canada, and whose spouse or common-law partner has died. Other residency criteria and income threshold requirements must also be met. The amount received will also appear in box 21, under Net supplements paid.
Text version
T4A (OAS) – Statement of Old Age Security
Protected B
Box 18: Taxable pension paid: 6,000.00
Box 21: Net supplements paid: 8,500.00 is highlighted
Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) payments are reported on the T4A(P) slip. Box 20, taxable CPP or QPP benefits, represents the amount of Canada or Quebec pension benefits the individual received in the year, which are considered to be taxable income.
The T4A(P) shows the benefits received, broken down by type.
In this example, the individual received $2,500 in retirement benefits shown in box 14 and $1,000 in disability benefits shown in box 16. The sum of the total benefits received is shown in box 20 under taxable CPP benefits.
The total taxable CPP benefits received are $3,500, and the $200 for income tax deducted is shown in box 22.
Text version
T4A(P) – Statement of Canada Pension Plan Benefits
Protected B
Box 20: Taxable CPP benefits: 3,500.00 is highlighted
Box 22: Income tax deducted: 200.00 is highlighted
Box 14: Retirement benefit: 2,500.00 is highlighted
Box 16: Disability benefit: 1,000.00 is highlighted
Check the screen-by-screen instructions section on how to enter these amounts in UFile.
Other common sources of income for adults 65 years and older are pension, superannuation, or annuity payments. These amounts are reported on a T4A slip.
Recipients of these types of income may be eligible for a non-refundable tax credit called the pension income amount (line 31400), which can help reduce some of their tax payable. Individuals might be able to claim up to $2,000 if they reported eligible pension, superannuation, or annuity payments on line 11500, line 11600, or line 12900 of their return. UFile will automatically calculate this credit.
Text version
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Box 016: Pension or superannuation – line 11500 is highlighted
Other income, deductions, non-refundable tax credits to be considered
United States social security benefits
Individuals who receive United States social security benefits usually receive an SSA-1042-S-Social Security Benefit Statement.
Under the Canada-United States tax treaty, individuals can claim a deduction equal to 15% of their U.S. Social Security benefits. However, if the individual has been a resident of Canada and has received U.S. Social Security benefits continuously during the period starting before January 1, 1996, and ending in 2021, they can claim a deduction equal to 50% of the U.S. Social Security benefits received in 2021.
Important note
A tax return involving any other type of foreign pension income is not considered a simple tax situation.
Pension income splitting
Pension income splitting allows an individual to transfer up to 50% of their eligible pension income to their spouse. This may allow a couple to reduce the total amount of tax owed.
If an individual receiving pension meets all of the following requirements, they may be able to jointly elect, with their spouse or common-law partner, to split their eligible pension income.
Requirements:
- Married or in a common-law relationship and not separated for 90 days or more beginning in the tax year
- Both were residents of Canada on December 31 of the tax year
- They received pension income in the year that qualifies for the pension income amount or they were 65 years of age or older and they received certain qualifying amounts distributed from a retirement compensation arrangement (Box 17 of their T4A-RCA slips).
Note
Old age security payments and the Canada Pension Plan or Quebec Pension Plan benefits are not eligible for pension income splitting.
UFile will automatically calculate the most beneficial split and will also automatically generate form T1032, Joint Election to Split Pension Income. Print a form T1032 for each spouse, as they will need to sign each other’s copies and retain them for their records.
Note
Only one joint election can be made per tax year. If both spouses have eligible pension income, UFile will optimally decide who will act as the transferring spouse, electing to allocate part of their eligible pension income to the receiving spouse.
For more information, see pension income splitting.
Non-refundable tax credits
Some non-refundable tax credits that adults 65 years and older may be entitled to claim include:
- the age amount (line 30100)
- the pension income amount (line 31400)
- the spouse or common-law partner amount (line 30300)
UFile will automatically calculate these amounts, if applicable.
The disability amount (for self) can be claimed if the individual has a T2201 Disability Tax Credit Certificate approved by the CRA. If the individual's disability tax credit (DTC) approval has expired, or if the individual is applying for the DTC for the first time, it is recommended that you do not claim the DTC when completing their return. Submit the DTC application separately.
For more information, see the Persons with disabilities.
Contributing to CPP
Depending on age and working situation, some adults 65 years and older may be required to contribute to the CPP. At the same time, some may be eligible to opt-out.
Individuals between the age of 60 and 70, who are in receipt of Canada Pension Plan or Quebec Pension Plan benefits and earning employment income, are required to contribute to the CPP.
Individuals who are between the age of 65 and 70 who receive CPP or QPP retirement pension, have the option to stop contributing to the CPP by filing form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. However, as a volunteer, it is not your role to give advice to individuals or to make a choice for them.
If an individual has questions about how this may affect their CPP entitlements in the future, they should call Service Canada at 1-800-277-9914.
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Screen-by-screen instructions
Disclaimer
This training uses screenshots taken from prior versions of the UFile CVITP software. Consequently, the images may differ slightly from the current version UFile CVITP. The content is accurate, and generally, the only difference will be the tax year being referenced. Should the current year’s software contain any significant changes, a new screenshot will be published as soon as possible.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Interview setup topic is highlighted
Pension income, other income and split pension income, COVID-19 benefits (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032) is highlighted
Interview setup
- Select the Interview setup from the left side menu
- Check the box next to Pension income, other income and split pension income, COVID-19 benefits (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)
- Click Next
Note: This step is only required once, even if an individual has several different sources of pension income, as it will generate a T4A and pension income page in the left side menu where all pension income slips can be added and entered.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A and pension income topic is highlighted
Pension and retirement income page
T4A(OAS) – Old age security pension income is highlighted
T4A(OAS) - Old age security pension income
- To report the amount from a T4A(OAS) slip, click T4A and pension income in the left side menu
- Click the + sign next to T4A(OAS) – Old age security pension income
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4 (OAS) old age security topic is highlighted
T4A(OAS) page
Box 18: Taxable pension paid is highlighted
Box 20: Overpayment recovered is highlighted
Box 21: Net supplements paid is highlighted
Box 22: Federal income tax deducted is highlighted
Box 23: Quebec income tax deducted is highlighted
T4A(OAS)
- Enter the amounts from the individual’s T4A(OAS) slip into the corresponding fields in UFile
- Click Next
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A and pension income topic is highlighted
Pension and retirement income page
T4A(P) – Statement of Canada or Québec pension plan benefits is highlighted
T4A(P) – Statement of Canada pension plan benefits
- Click T4A and pension income in the left side menu
- Click the + sign next to T4A(P) – Statement of Canada or Québec pension plan benefits
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A(P) CPP/QPP benefits topic is highlighted
T4A(P) – Statement of Canada Pension Plan Benefits page
Box 14: Retirement benefit is highlighted
Box 23: Number of months – retirement is highlighted
Box 15: Survivor benefits is highlighted
Box 16: Disability benefit is highlighted
Box 21: Number of months – disability is highlighted
Box 17: Child benefit is highlighted
Box 18: Death benefit is highlighted
Box 19: Post-retirement benefit is highlighted
Box 22: Federal income tax deducted is highlighted
T4A(P) – Statement of Canada Pension Plan Benefits
- Enter the amounts from the individual’s T4A(P) slip into the corresponding boxes
- Click Next
Note: You are not required to key in the amount shown in box 20 of the T4A (P) slip. The software will automatically add it for you.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A and pension income topic is highlighted
Pension and retirement income page
T4A – Pension, retirement, annuity, and other income (COVID-19 benefits) is highlighted
T4A – Pension, retirement, annuity and other income
- Click T4A and pension income in the left side menu
- Click the + sign next to T4A – Pension, retirement, annuity, and other income (COVID-19 benefits)
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A annuity income topic is highlighted
T4A – Pension, retirement, annuity and other income page
Field: This T4A slip was issued by is highlighted
Box 016: Pension or superannuation is highlighted
Box 018: Lump-sum payments is highlighted
Box 024: Annuities is highlighted
Box 194: PRPP payments is highlighted
T4A – Pension, retirement, annuity and other income
- Enter the amounts from the individual’s T4A slip into the corresponding fields in UFile
- Click Next
Note: If the individual has more than one T4A to input, return to T4A and pension income in the left side menu and click the + sign to enter an additional T4A. Each slip must be added separately.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
T4A and pension income topic is highlighted
Pension and retirement income page
Split pension income with your spouse is highlighted
Split pension income with your spouse
- Once you have entered all eligible pension income, select T4A and pension income from the left side menu
- Click the + sign found next to Split pension income with your spouse
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Split pension income topic is highlighted
Splitting of pension income between spouses page
Do you wish to split eligible pension income with your spouse is highlighted
Let MaxBack decide is highlighted in the drop-down menu
Splitting of pension income between spouses
- On the Splitting of pension income between spouses page, select Let MaxBack decide from the drop-down menu (recommended option)
Note: By selecting this option, the software will calculate whether or not it is to the couple’s advantage to split the eligible pension income and in which proportion (up to a maximum of 50%).
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Split pension income topic is highlighted
Splitting of pension income between spouses page
Do you wish to split eligible pension income with your spouse
Transfer to spouse (if eligible) is highlighted
Amount field is selected
Splitting of pension income between spouses
- If you select Transfer to spouse (if eligible) from the drop-down menu, a manual calculation is required to determine the transferable amounts
- Manually complete form T1032, Joint Election to Split Pension Income. Enter the amount of the transfer in the appropriate field in UFile
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Interview setup topic is highlighted
Foreign income or foreign property (T1135) is highlighted
U.S. Social Security benefits
- Select the Interview setup from the left side menu
- Check the box next to Foreign income or foreign property (T1135) from the Investment income and expenses section.
- Click Next
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Foreign income and property topic is highlighted
Foreign income or foreign property page
Foreign pension income (includes U.S. Social Security benefits) is highlighted
U.S. Social Security benefits
- Select Foreign income and property from the left side menu
- Click the + sign next to Foreign pension income (includes U.S. social security benefits) from the Foreign non-business income section.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
U.S. Social Security topic is highlighted
Foreign income - pension page
Country from where you received the foreign income
If the country signed a tax treaty with Canada, a deduction under 20(11) would not be allowed: United States (tax treaty with Canada) is highlighted
Description of the source of the foreign income: U.S. Social Security is highlighted
Exchange rate to apply is highlighted
Type of foreign pension income is highlighted with the following drop-down options:
United States social security benefits (15%)
United States social security benefits (50%)
Other foreign pension benefits
Foreign annuities not eligible for the pension inc. amount
Foreign lump-sum pension benefits
United States IRA
Amount of foreign income received is highlighted
U.S. Social Security benefits
- Select United States (tax treaty with Canada) for the field Country from where you received the foreign income
- Enter U.S. Social Security for the Description of the source of the foreign income
- Enter the applicable Exchange rate to apply (see annual exchange rates listed on the Bank of Canada website)
- Select the applicable Type of foreign pension income
- Enter the Amount of foreign income received
- Click Next
Note: To determine if United States social security benefits 15% or 50% should be selected, see United States Social Security benefits
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Example 1: Married couple (Pension income splitting and Disability tax credit transferred to the spouse)
Instructions: Practice entering information into the mock profile
Open the UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.), and points to remember sections provided in the example to enter all the necessary information. Once completed, compare your results with the solution provided.
Disclaimer
Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.
Background information Name Alexei Reznikov Social insurance number (SIN) 000 000 000 Address 123 Main Street
City, Province X0X 0X0
Date of birth October 2, 1946 Marital status Married to:
Nadia Reznikov on July 23, 1983
SIN: 000 000 000
DOB: April 23, 1961
Slips required:
- T4 – Statement of Remuneration Paid (Pets R Us) (for Nadia)
- T4A – Statement of Pension, Retirement, Annuity, and Other Income (for Alexei)
- T4A(OAS) – Statement of Old Age Security (for Alexei)
- T4A(P) – Statement of Canada Pension Plan Benefits (for Alexei)
- T5 – Statement of Investment Income (for Alexei)
Situation 1: Pension income splitting
Nadia is an employee of a pet store (Pets R Us). Alexei is retired and received income from the Canada Pension Plan, Old Age Security, interest, and superannuation (Registered Pension Plan).
Alexei and Nadia are interested in pension income splitting and would like to take full advantage of this option.
Points to remember:
- Canada Pension Plan (CPP) and Old Age Security (OAS) income are not eligible for pension income splitting
- Click T4A and pension income in the left side menu and select Split pension income with your spouse. On the Splitting of pension income between spouses page, select the Let MaxBack decide option to split the eligible income
- Since Alexei has received both CPP retirement and disability benefits throughout the year, ensure that the sum of box 23 and box 21 (number of months) does not exceed 12:
- in this case, enter 6 into box 23 and box 21
Situation 2: Disability tax credit transferred to the spouse
Alexei and Nadia do not wish to take advantage of the pension income splitting option. Nadia is approved for the disability tax credit (DTC). She wants to transfer the unused portion of her credit to Alexei.
Points to remember:
- Since Nadia is approved for the DTC, she is eligible to claim the disability amount. Ensure that you check the box Medical, disability, caregiver in the Interview setup section
- Click Medical, disability, caregiver in the left side menu, and click the + sign next to Infirmity and Disability amounts claim for yourself (line 31600) on the Medical expenses, disability deductions page. Enter Disability under Name or Description of infirmity. UFile will automatically transfer any unused DTC credits to Alexei
- For the question Are you eligible for the disability amount on line 31600?, select Claim disability amount (default)
- For the question Does this infirmity provide entitlement to the Canada caregiver amount?, select Yes
- To transfer the amount to Alexei, you will also need to answer the last question Does CRA already have an approved T2201 form registered in the account of your spouse or common-law partner? In this situation, the answer is No
Information slips for Alexei:
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Text version
T4A – Statement of Pension, Retirement, Annuity, and Other Income
Protected B
Payer’s name: Bank of Canada
Recipient’s name and address:
Last name: Reznikov
First name: Alexei
123 Main Street
City Province X0X 0X0
Box 012: Social insurance number: 000 000 000
Box 016: Pension or superannuation – line 11500: 11,000.00
Box 022: Income tax deducted – line 43700: 2,046.00
T4A(OAS) – Statement of Old Age Security
Text version
T4A(OAS) – Statement of Old Age Security
Protected B
Issued by: Service Canada
Reznikov, Alexei
123 Main Street
City Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 18: Taxable pension paid: 6,778.44
Box 22: Income tax deducted: 0.00
T4A(P) – Statement of Canada Pension Plan Benefits
Text version
T4A(P) – Statement of Canada Pension Plan Benefits
Protected B
Sent by: Service Canada
Reznikov, Alexei
123 Main Street
City Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 21: Number of months – disability: 6
Box 23: Number of months – retirement: 6
Box 22: Income tax deducted: 0.00
Box 14: Retirement benefit: 6,211.00
Box 16: Disability benefit: 8,216.00
T5 – Statement of Investment Income
Text version
T5 – Statement of Investment Income
Protected B
Recipient’s name (last name first) and address:
Reznikov, Alexei
123 Main Street
City Province X0X 0X0
Payer’s name and address:
Bank 1
456 Main Street
City Province X0X 0X0
Box 13: Interest from Canadian sources: 85.00
Box 22: Recipient’s identification number: 000000000
Information slip for Nadia:
T4 – Statement of Remuneration Paid (Pets R Us)
Text version
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Pets R Us
Employee’s name and address:
Last name: Reznikov
First name: Nadia
123 Main Street
City Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 4,875.00
Box 22: Income tax deducted – line 43700: 897.00
Box 16: Employee’s CPP contributions: 72.19
Box 24: EI insurable earnings: 4,875.00
Box 26: CPP/QPP pensionable earnings: 4,875.00
Box 18: Employee’s EI premiums – line 31200: 65.00
Box 44: Union dues – line 21200: 50.00
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Solution 1: Married couple (Pension income splitting and Disability tax credit transferred to the spouse)
Instructions
This solution was calculated using the 2021 version of UFile CVITP, with Ontario as the province of residence. To validate your results, refer to the federal totals generated on lines 15000, 23600, 26000, and 42000. Calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.
Solution to situation 1: Pension income splitting
Text version
Alexei Reznikov
Total income
10100 Employment income
11300 Old Age Security pension: $6,778.44
11400 CPP or QPP benefits: $14,427.00
11500 Other pensions and superannuation: $11,000.00
11600 Elected split-pension amount (T1032)
12100 Interest and other investment income: $85.00
15000 Total income: $32,290.44
Net income
21000 Deduction for elected split-pension amount (T1032): $5,500.00
21200 Annual union, professional, or like dues
22215 Deduction for CPP and QPP enhanced contributions
23600 Net income: $26,790.44
Taxable income
26000 Taxable income: $26,790.44
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30100 Age amount: $7,713.00
30300 Spouse or common-law partner amount: $3,489.62
30800 CPP or QPP contributions through employment
31200 Employment Insurance premiums through employment
31260 Canada employment amount
31400 Pension income amount: $2,000.00
32600 Amounts transferred from your spouse or common-law partner: $2,000.00
33500 Total: $29,010.62
33800 Total @ 15%: $4,351.59
35000 Non refundable tax credits: $4,351.59
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $564.64
43500 Total payable: $564.64
43700 Total income tax deducted: $1,023.00
Payments and credits
48200 Total credits: $1,023.00
48400 Refund: $458.36
Nadia Reznikov
Total income
10100 Employment income: $4,875.00
11300 Old Age Security pension:
11400 CPP or QPP benefits
11500 Other pensions and superannuation
11600 Elected split-pension amount (T1032): $5,500.00
12100 Interest and other investment income
15000 Total income: $10,375.00
Net income
21000 Deduction for elected split-pension amount (T1032):
21200 Annual union, professional, or like dues: $50.00
22215 Deduction for CPP and QPP enhanced contributions: $6.62
23600 Net income: $10,318.38
Taxable income
26000 Taxable income: $10,318.38
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30100 Age amount
30300 Spouse or common-law partner amount
30800 CPP or QPP contributions through employment: $65.57
31200 Employment Insurance premiums through employment: $65.00
31260 Canada employment amount: $1,257.00
31400 Pension income amount: $2,000.00
32600 Amounts transferred from your spouse or common-law partner
33500 Total: $17,195.57
33800 Total @ 15%: $2,579.34
35000 Non refundable tax credits: $2,579.34
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $0.00
43500 Total payable: $0.00
43700 Total income tax deducted: $1,920.00
Payments and credits
48200 Total credits: $1,920.00
48400 Refund: $1,920.00
Solution to situation 2: Disability tax credit transferred to the spouse
Text version
Alexei Reznikov
Total income
10100 Employment income
11300 Old Age Security pension: $6,778.44
11400 CPP or QPP benefits: $14,427.00
11500 Other pensions and superannuation: $11,000.00
12100 Interest and other investment income: $85.00
15000 Total income: $32,290.44
Net income
21200 Annual union, professional, or like dues
22215 Deduction for CPP and QPP enhanced contributions
23600 Net income: $32,290.44
Taxable income
26000 Taxable income: $32,290.44
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30100 Age amount: $7,713.00
30300 Spouse or common-law partner amount: $11,284.62
30800 CPP or QPP contributions through employment
31200 Employment Insurance premiums through employment
31260 Canada employment amount
31400 Pension income amount: $2,000.00
31600 Disability amount (for self)
32600 Amounts transferred from your spouse or common-law partner: $8,662.00
33500 Total: $43,467.62
33800 Total @ 15%: $6,520.14
35000 Non refundable tax credits: $6,520.14
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $300.00
43500 Total payable: $300.00
43700 Total income tax deducted: $2,046.00
Payments and credits
45300 Canada workers benefit (CWB) (schedule 6)
48200 Total credits: $2,046.00
48400 Refund: $1,746.00
Nadia Reznikov
Total income
10100 Employment income: $4,875.00
11300 Old Age Security pension
11400 CPP or QPP benefits
11500 Other pensions and superannuation
12100 Interest and other investment income
15000 Total income: $4,875.00
Net income
21200 Annual union, professional, or like dues: $50.00
22215 Deduction for CPP and QPP enhanced contributions: $6.62
23600 Net income: $4,818.38
Taxable income
26000 Taxable income: $4,818.38
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30100 Age amount:
30300 Spouse or common-law partner amount
30800 CPP or QPP contributions through employment: $65.57
31200 Employment insurance premiums through employment: $65.00
31260 Canada employment amount: $1,257.00
31400 Pension income amount
31600 Disability amount (for self): $8,662.00
32600 Amounts transferred from your spouse or common-law partner
33500 Total: $23,857.57
33800 Total @ 15%: $3,578.64
35000 Non refundable tax credits: $3,578.64
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $0.00
43500 Total payable: $0.00
43700 Total income tax deducted: $897.00
Payments and credits
45300 Canada workers benefit (CWB) (schedule 6): $720.00
48200 Total credits: $1,617.00
48400 Refund: $1,617.00
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Example 2: Working and receiving a foreign pension
Instructions: Practice entering information into the mock profile
Open the UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.), and points to remember sections provided in the example to enter all the necessary information. Once completed, compare your results with the solution provided.
Disclaimer
Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.
Background information Name Doris Cromwell Social insurance number (SIN) 000 000 000 Address 123 Main Street
City Province X0X 0X0
Date of birth June 13, 1950 Marital status Single Slips required:
- T4 – Statement of Remuneration Paid (Chez Suzie) (for Doris)
- SSA-1042S – U.S. Social Security Benefit Statement (foreign pension income)
Doris is employed at a bakery (Chez Suzie). Doris also receives U.S. Social Security benefits.
Points to remember:
- U.S. Social Security benefits are considered foreign pension income. Check the box next to Foreign income or foreign property (T1135) in the Interview setup section
- Click the + sign next to Foreign pension income (includes U.S. social security benefits)
- Since Doris’s foreign pension started after January 1996, under Type of foreign pension income select United States social security benefits (15%).
Information slip for Doris:
T4 – Statement of Remuneration Paid (Chez Suzie)
Text version
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Chez Suzie
Employee’s name and address:
Last name: Cromwell
First name: Doris
123 Main Street
City Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 4,850.00
Box 22: Income tax deducted – line 43700: 845.00
Box 24: EI insurable earnings: 4,850.00
Box 26: CPP/QPP pensionable earnings: 4,850.00
Box 18: Employee’s EI premiums – line 31200: 75.50
Box 44: Union dues – line 21200: 40.00
SSA-1042S - U.S. Social Security Benefit Statement (foreign pension income)
Text version
Form SSA-1042S – Social Security Benefit Statement – SAMPLE
This form is for use in filing a United States federal income tax return. Do not return it to social security. Read the information on the reverse.
Box 1: Name: Doris Cromwell
Box 2: Beneficiary’s Social Security Number: XXX-XX-XXXX
Box 3: Benefits Paid in 20XX: 1,250.00
Box 4: Benefits Repaid to SSA in 20XX: NONE
Box 5: Net Benefits for 20XX (Box 3 minus Box 4): 1,250.00
Description of amount in box 3
Paid by check or direct deposit: 1,000.00
Medicare Part B premiums deducted from your benefits: 250.00
Total Additions: 1,250.00
Benefits for 20XX: 1,250.00
Description of amount in box 4: NONE
Box 7: Amount of Tax Withheld: NONE
Box 8: Amount of Tax Refunded: NONE
Box 9: Net Tax Withheld During 20XX (Box 7 minus Box 8): NONE
Box 10: Address
123 Main Street
City Province CA
X0X 0X0
Box 11: Claim Number (Use this number if you need to contact SSA): XXX-XX-XXXX
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Solution 2: Working and receiving a foreign pension
Instructions
This solution was calculated using the 2021 version of UFile CVITP, with Ontario as the province of residence. To validate your results, refer to the federal totals generated on lines 15000, 23600, 26000, and 42000. Calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.
Text version
Doris Cromwell
Total income
10100 Employment income: $4,850.00
11500 Other pensions and superannuation : $1,566.88
15000 Total income: $6,416.88
Net income
21200 Annual union, professional, or like dues: $40.00
23600 Net income: $6,376.88
Taxable income
25600 Additional deductions: $235.03
26000 Taxable income: $6,141.85
Non refundable tax credits
30000 Basic personal amount: $13,808.00
30100 Age amount: $7,713.00
31200 Employment insurance premiums through employment: $75.50
31260 Canada employment amount: $1,257.00
31400 Pension income amount: $1,331.85
33500 Total: $24,185.35
33800 Total @ 15%: $3,627.80
35000 Non refundable tax credits: $3,627.80
Refund or balance owing
42900 Basic federal tax: $0.00
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $0.00
42000 Net federal tax: $0.00
42800 Provincial or territorial tax: $0.00
43500 Total payable: $0.00
43700 Total income tax deducted: $845.00
Payments and credits
45300 Canada workers benefit (CWB) (Schedule 6): $499.50
48200 Total credits: $1,344.50
48400 Refund: $1,344.50
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