On this page…

• What amounts can you claim?
• Schedule B, Allowable Amount of Non-Refundable Tax Credits
• Amounts for non-resident dependants (lines 303 and 306)
• Line 300 - Basic personal amount
• Line 301 - Age amount
• Line 303 - Spouse or common-law partner amount
  • Net world income of spouse or common-law partner
• Line 305 - Amount for an eligible dependant
  • How to claim
• Line 306 - Amount for infirm dependants age 18 or older
  • How to claim
• Line 308 - CPP or QPP contributions through employment
  • Making additional CPP contributions
• Line 310 - CPP or QPP contributions on self-employment and other earnings

These credits reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference. If, after you have read the information in this guide, you need more details about claiming the amounts on lines 300 to 306, get Interpretation Bulletin IT-513, Personal Tax Credits .

What amounts can you claim?

Deemed residents - You can claim all the non-refundable tax credits that apply to you.

Non-residents and non-residents electing under section 217 - The non-refundable tax credits that you can claim depends on the portion of net world income (line 14 of Schedule A) that is included in net income (line 236) on your return.

For more information, see the section called "Schedule B, Allowable Amount of Non-Refundable Tax Credits" below. You can also refer to the schedule.

Note
To complete Schedule B, you will first need to complete Schedule A.

Schedule B, Allowable Amount of Non-Refundable Tax Credits

To determine the amount of non-refundable tax credits that you can claim and to calculate your allowable amount of non-refundable tax credits, complete Schedule B. You will find Schedule B in the centre of this guide.

Non-residents - Complete Part A of Schedule B. If line A is 90% or more, your allowable amount of non-refundable tax credits is the amount on line 350 of your Schedule 1.

If you do not meet this 90% rule, you can claim only the non-refundable tax credits on lines 316, 319, 323 (other than the education amount), and 349 if they apply to you. Your allowable amount of non-refundable tax credits will be 16% of the total of these credits.

Non-residents electing under section 217 - You can claim all the non-refundable tax credits that apply on Schedule 1. However, your allowable amount of non-refundable tax credits may be limited.

Complete Part B of Schedule B. If line A is 90% or more, your allowable amount of non-refundable tax credits is the amount on line 350 of your Schedule 1.

If you do not meet this 90% rule, your allowable amount of non-refundable tax credits is whichever is less: the amount on line 350 of your Schedule 1 or 16% of your eligible section 217 income that was paid or credited to you in 2004.

Amounts for non-resident dependants (lines 303 and 306)

You may be able to claim an amount for certain dependants who live outside Canada if they depended on you for support. You may be able to make this claim for your spouse or common-law partner (line 303) and for your or your spouse or common-law partner's children and grandchildren who were born in 1986 or earlier and who were mentally or physically infirm (line 306). You cannot claim an amount for any other relatives who lived outside Canada for all of 2004.

If the above dependants already have enough income or assistance for a reasonable standard of living in the country in which they live, we do not consider them to depend on you for support. Also, we do not consider gifts you send them to be support.

If you are filing a return, include proof of your payment of support. The proof of payment has to show your name, the amount, the date of the payment, and the dependant's name and address. If you sent the funds to a guardian, the guardian's name and address also have to appear on the proof of payment.

Line 300 - Basic personal amount

Claim $8,012.

Line 301 - Age amount

If you were 65 or older on December 31, 2004, and your net income (line 236 of your return) was:

• $29,124 or less, enter $3,912 on line 301;
• more than $29,124, but less than $55,204, complete the chart for line 301 on the Federal Worksheet in the centre of this guide to calculate your claim; or
• $55,204 or more, you cannot claim the age amount.

If you are a deemed resident, your net world income is the amount on line 236 of your return. If you are a non-resident or non-resident filing under section 217, your net world income is the amount on line 14 of Schedule A, Statement of World Income.

Make sure you enter your date of birth in the "Information about you" area on page 1 of your return.

Line 303 - Spouse or common-law partner amount

If, at any time in the year, you supported your spouse or common-law partner (see the definition) and his or her net world income (see next section) was:

• $681 or less, claim $6,803 on line 303;
• more than $681, but less than $7,484, calculate your claim at line 303; or
• $7,484 or more, you cannot claim a spouse or common-law partner amount.

Make sure you enter your marital status and the information concerning your spouse or common-law partner in the Identification area on page 1 of your return. Both of you cannot claim this amount for each other for the same year.

If you were required to make support payments to your current or former spouse or common-law partner, and you were separated for only part of 2004 because of a breakdown in your relationship, you have a choice. You can claim either the deductible support amounts paid in the year to your spouse or common-law partner on line 220 or an amount on line 303 for your spouse or common-law partner, whichever is better for you. If you reconciled with your spouse or common-law partner before the end of 2004, you could claim an amount on line 303, and/or any allowable amounts on line 326.

Net world income of spouse or common-law partner

If your spouse or common-law partner was a deemed resident in 2004, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return.

If your spouse or common-law partner was a non-resident in 2004, his or her net world income is his or her income for 2004 from all sources both inside and outside Canada.

If you were living with your spouse or common-law partner on December 31, 2004, use his or her net world income for the whole year. This applies even if you got married or back together with your spouse in 2004, or you became a common-law partner or started to live with your common-law partner again (see definition). If you separated in 2004 because of a breakdown in your relationship, and were not back together on December 31, 2004, reduce your claim only by your spouse or common-law partner's net world income before the separation. In either case, enter, in the "Information about your spouse or common-law partner" area on page 1 of your return, the amount you use to calculate your claim, even if it is zero.

Line 305 - Amount for an eligible dependant

You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

• you did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person;
• you supported a dependant in 2004; and
• you lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant also must have been either:

• your parent or grandparent, by blood, marriage, common-law partnership, or adoption (legal or in fact); or
• your child, grandchild, brother, or sister, by blood, marriage, common-law partnership, or adoption (legal or in fact) and either under 18, or mentally or physically infirm.

Notes
Your dependant may live away from home while attending school. If the dependant ordinarily lived with you when not in school, we consider that dependant to live with you for the purposes of this credit.

For the purposes of this claim, your child is not required to have been resident of Canada, but still must have lived with you. This would be possible, for example, if you were a deemed resident living in another country with your child.

Even if all of the preceding conditions have been met, you cannot claim this amount if any of the following applies:

• You are claiming a spouse or common-law partner amount (line 303).
• The person for whom you want to claim this amount is your common-law partner. However, you may be able to claim the amount on line 303.
• Someone else in your household is making this claim. Each household is allowed only one claim for this amount, even if there is more than one dependant in the household.
• The claim is for a child for whom you were required to make support payments for 2004. However, if you were separated from your spouse or common-law partner for only part of 2004 due to a breakdown in your relationship, you can still claim an amount for that child on line 305 (plus any allowable amounts on lines 306, 315, and 318) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You may claim whichever is better for you.

How to claim

Calculate your dependant's net world income. If your dependant is a deemed resident, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return. If your dependant is a non-resident, his or her net world income is his or her net income for 2004 from all sources both inside and outside Canada. If your dependant's net world income was:

• $681 or less, claim $6,803 on line 305;
• more than $681, but less than $7,484, complete the chart for line 305 on the Federal Worksheet in the centre of this guide to calculate your claim; or
• $7,484 or more, you cannot claim this amount.

Complete the appropriate part of Schedule 5 and attach it to your return.

Notes
You cannot split this amount with another person. Once you claim this amount for a dependant, no one else can claim this amount or an amount on line 306 for that dependant.

If you and another person both can claim this amount for the same dependant (such as shared custody of a child) but cannot agree who will claim the amount, neither of you is allowed to claim it.

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount for your or your spouse or common-law partner's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1986 or earlier.

You also can claim an amount for more than one person as long as each one meets all of the following conditions. The person must have been:

• your or your spouse or common-law partner's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• born in 1986 or earlier;
• mentally or physically infirm;
• dependent on you, or on you and others, for support; and
• a resident of Canada at any time in the year. You cannot claim this amount for a person who was only visiting you.

Note
A child can include someone older than you who has become dependent on you.

If, for a particular dependant, anyone other than you is claiming an amount on line 305, or anyone (including you) can claim an amount on line 315, you cannot claim an amount on line 306 for that dependant. If you are claiming an amount on line 305 for a dependant who is infirm and age 18 or older, you also may be able to claim a part of the amount on line 306 for that dependant.

You can claim an amount only if the dependant's net world income (see "How to claim" on this page for a definition) is less than $9,152.

If you were required to make support payments for that child, you cannot claim an amount on line 306 for that child. However, if you were separated from your spouse or common-law partner for only part of 2004 due to a breakdown in your relationship, you can still claim an amount for that child on line 306 (plus any allowable amounts on lines 305 and 318) as long as you do not claim any support amounts paid to your spouse or common-law partner on line 220. You may claim whichever is better for you.

How to claim

• For each of your dependants, calculate his or her net world income (line 236 of his or her return, or the amount that it would be if he or she filed a return). If your dependant is a deemed resident, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return. If your dependant is a non-resident, his or her net world income is his or her net world income for 2004 from all sources both inside and outside Canada. Complete the chart for line 306 on the Federal Worksheet in the centre of this guide to calculate your claim.
• Complete the appropriate part of Schedule 5 and attach it to your return. You also should have a signed statement from a medical doctor that gives the nature, commencement, and duration of the dependant's infirmity. Keep the statement in case we ask to see it.

Claims made by more than one person - If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot be more than the maximum amount allowed for that dependant.

Line 308 - CPP or QPP contributions through employment

Claim, in dollars and cents, the total of the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions shown in boxes 16 and 17 of your T4 slips. Do not enter more than $1,831.50.

If you contributed to the QPP in 2004 and do not have to file a return for the province of Quebec, treat those contributions as if you made them to the CPP. Attach to your return the RL-1 slip your employer sent you.

If you contributed more than $1,831.50, enter the excess amount on line 448 of your return. We will refund this overpayment to you, or use it to reduce your balance owing. However, if you have to file a return for the province of Quebec, and contributed more than $1,831.50, claim the overpayment on your provincial income tax return for Quebec.

You may have an overpayment, even if you contributed $1,831.50 or less. For example:

• In 2004, you may have been a CPP participant and either turned 18 or 70, or received a CPP retirement or disability pension.
• In 2004, you may have been a QPP participant and either turned 18 or received a QPP disability pension.
• From all your T4 slips for 2004, the total of amounts in box 14 may be more than the total of amounts in box 26. If box 26 of one of the slips is blank, use the amount in box 14.

You can calculate your overpayment, if any, using Form T2204, Employee Overpayment of 2004 Canada Pension Plan Contributions and 2004 Employment Insurance Premiums .

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 required. This can happen if any of the following applies:

• You had more than one employer in 2004.
• You had income, such as tips, from which your employer did not have to withhold contributions.
• You were in a type of employment that was not covered under CPP rules, such as casual employment.

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 $1,831.50, you can contribute 9.9% on any part of the income on which you have not already made contributions. The maximum income for 2004 for which you can contribute to the CPP is $40,500. Making additional contributions may increase the pension you receive later.

To make additional CPP contributions for 2004, complete Schedule 8 to calculate the amount of the additional contributions and claim the appropriate amounts at lines 222 and 310. Also, complete Form CPT20, Election to Pay Canada Pension Plan Contributions , and attach a copy of Schedule 8 and form CPT20 to your return, or send it to us separately on or before June 15, 2006. This form lists the eligible employment income on which you can make additional CPP contributions.

Tax-exempt employment income earned by a registered Indian - If you are a registered Indian with tax-exempt employment income, and there is no amount in box 16 of your T4 slip, you may also be able to contribute to the CPP on this income.

Line 310 - CPP or QPP contributions on self-employment and other earnings

Claim, in dollars and cents, the same amount you claimed on line 222 of your return.

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