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Table of contents

• Form SK428, Saskatchewan Income Tax and Credits
• Step 1 - Saskatchewan non-refundable tax credits
  • Newcomers to Canada and emigrants
  • Line 5804 - Basic personal amount
  • Line 5808 - Age amount
  • Line 5812 - Spouse or common-law partner amount
  • Line 5816 - Amount for an eligible dependant
  • Line 5820 - Amount for infirm dependants age 18 or older
  • Line 5821 - Amount for dependent children born in 1989 or later
  • Line 5822 - Senior supplementary amount
  • Line 5824 - CPP or QPP contributions through employment
  • Line 5828 - CPP or QPP contributions on self-employment and other earnings
  • Line 5832 - Employment Insurance premiums
  • Line 5836 - Pension income amount
  • Line 5840 - Caregiver amount
  • Line 5844 - Disability amount
  • Line 5848 - Disability amount transferred from a dependant (other than your spouse or
    common-law partner)
  • Line 5852 - Interest paid on your student loans
  • Line 5856 - Your tuition and education amounts
  • Line 5860 - Tuition and education amounts transferred from a child
  • Line 5864 - Amounts transferred from your spouse or common-law partner
  • Line 5868 - Medical expenses
  • Line 5872 - Allowable amount of medical expenses for other dependants
  • Line 5877 - Graduate tax exemption amount
  • Line 5896 - Donations and gifts
• Step 2 - Saskatchewan tax on taxable income
• Step 3 - Saskatchewan tax
  • Line 41 - Saskatchewan farm and small business capital gains tax credit
  • Line 43 - Saskatchewan tax on split income
  • Line 51 - Saskatchewan additional tax for minimum tax purposes
  • Line 53 - Provincial foreign tax credit
  • Line 55 - Royalty tax rebate
  • Lines 57 and 58 - Political contribution tax credit
  • Lines 60 to 62 - Labour-sponsored venture capital tax credit
  • Lines 64 to 68 - Saskatchewan employee's tools tax credit
  • Line 70 - Saskatchewan post-secondary graduate tax credit
  • Line 72 - Saskatchewan mineral exploration tax credit

The following information will help you complete Form SK428, Saskatchewan Income Tax and Credits.

The terms spouse and common-law partner are defined in the General Income Tax and Benefit Guide.

The term end of the year means December 31, 2007, the date you left Canada if you emigrated in 2007, or the date of death for a person who died in 2007.

Tax Tip
A number of Saskatchewan tax measures are distinct from corresponding federal measures. However, many rules for calculating Saskatchewan tax are still based on the federal Income Tax Act. As a result, you may find it easier to calculate your federal tax first. Your total taxes payable will be the same, no matter which tax you calculate first.

Form SK428, Saskatchewan Income Tax and Credits

Complete Form SK428 if you were a resident of Saskatchewan at the end of the year.

If you had income from a business with a permanent establishment outside Saskatchewan, complete Form T2203, Provincial and Territorial Taxes for 2007 - Multiple Jurisdictions, instead of completing Form SK428.

You also have to complete Form SK428 if you were a non-resident of Canada in 2007 and you earned income from employment in Saskatchewan or received income from a business with a permanent establishment only in Saskatchewan.

Step 1 - Saskatchewan non-refundable tax credits

The eligibility criteria and rules for claiming most of the Saskatchewan non-refundable tax credits are the same as for the federal non-refundable tax credits. However, the value and calculation of some Saskatchewan non-refundable tax credits are different from the corresponding federal credits.

To calculate some of the provincial non-refundable tax credits, you will need to use the Provincial Worksheet.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315, 316, 318, 324, and 326 of your federal Schedule 1, you have to prorate the corresponding provincial amounts at lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864. Also, you may have to prorate the amounts on lines 5821 and 5822.

Line 5804 - Basic personal amount

Claim the basic personal amount of $8,778.

Line 5808 - Age amount

You can claim this amount if you were 65 or older on December 31, 2007, and your net income (line 236 of your return) is less than $58,643.

If your net income is:

• $30,936 or less, enter $4,156 on line 5808; or
• more than $30,936 but less than $58,643, complete the calculation for line 5808 on the Provincial Worksheet to determine your claim.

Note
You may be able to transfer all or part of your age amount to your spouse or common-law partner. Similarly, you may be able to claim all or part of his or her age amount. See line 5864 for details.

Line 5812 - Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1. You still may be able to claim the provincial amount if your spouse or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $9,656.

If your spouse or common-law partner's net income is:

• $878 or less, enter $8,778 on line 5812; or
• more than $878 but less than $9,656, complete the calculation on Form SK428 to determine your claim, and enter the amount on line 5812.

Note
Enter your marital status and the information concerning your spouse or common-law partner (including his or her net income, even if it is zero) in the Identification area on page 1 of your return.

Line 5816 - Amount for an eligible dependant

You can claim this amount if the rules are met for claiming the amount on line 305 of federal Schedule 1. You still may be able to claim the provincial amount if your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $9,656.

If your dependant's net income is:

• $878 or less, enter $8,778 on line 5816; or
• more than $878 but less than $9,656, complete the calculation for line 5816 on the Provincial Worksheet to determine your claim.

If you have not already completed federal Schedule 5, complete and attach it to your return.

Line 5820 - Amount for infirm dependants age 18 or older

You can claim this amount if the rules are met for claiming the amount on line 306 of federal Schedule 1.

Complete the calculation for line 5820 on the Provincial Worksheet to determine your claim.

Line 5821 - Amount for dependent children born in 1989 or later

You can claim this amount if you lived in Saskatchewan at the end of the year and you had a dependent child for whom all of the following conditions apply:

• the child was less than 18 years of age at any time in 2007;
• the child lived with you at the end of the year (or on the date of death for a child who died in 2007); and
• a special allowance under the Children's Special Allowances Act was not received by anyone for that child.

You cannot claim this credit if anyone made a claim for the child as an eligible dependant on line 5816 or as a spouse or common-law partner on line 5812.

If you have a spouse or common-law partner, only one of you can claim this credit. Where both are eligible to make this claim, the person with the lower taxable income must make the initial claim. The other person may claim any unused amount by completing Schedule SK(S2), Provincial Amounts Transferred From Your Spouse or Common-Law Partner, and filing it with his or her return.

Enter beside box 6370 the number of dependent children you have. Claim $2,743 on line 5821 for each dependent child. Please give details of your dependent children in the chart on Form SK428.

Line 5822 - Senior supplementary amount

You can claim this amount if you were 65 or older in 2007 and you lived in Saskatchewan at the end of the year. You can claim it regardless of your net income.

Claim $1,097 on line 5822.

If you are completing a return for a person who died in 2007, you can claim this amount if the person was 65 before the date of death and he or she lived in Saskatchewan on the date of death.

Note
You may be able to transfer all or part of your senior supplementary amount to your spouse or common-law partner. Similarly, you may be able to claim all or part of his or her senior supplementary amount. See line 5864 for details.

Line 5824 - CPP or QPP contributions through employment

Enter on this line the same amount that you claimed on line 308 of your federal Schedule 1.

Line 5828 - CPP or QPP contributions on self-employment and other earnings

Enter on this line the same amount that you claimed on line 310 of your federal Schedule 1.

Line 5832 - Employment Insurance premiums

Enter on this line the same amount that you claimed on line 312 of your federal Schedule 1.

Line 5836 - Pension income amount

You can claim this amount if you met the rules for claiming an amount on line 314 of federal Schedule 1. The amount you can claim on line 5836 is the amount on line 314 of federal Schedule 1, or $1,000, whichever is less.

Note
Only residents of Saskatchewan are eligible for this amount. If you are not a resident of Saskatchewan, you cannot claim this tax credit in calculating your Saskatchewan tax even though you may have received income from a source inside Saskatchewan in 2007.

Line 5840 - Caregiver amount

You can claim this amount if the rules are met for claiming the amount on line 315 of federal Schedule 1.

Complete the calculation for line 5840 on the Provincial Worksheet to determine your claim.

Line 5844 - Disability amount

You can claim this amount if you met the rules for claiming the corresponding federal amount on line 316 of federal Schedule 1.

• If you were 18 or over at the end of the year, enter $6,890 on line 5844.
• If you were under 18 at the end of the year, you may be eligible to claim a supplement up to a maximum of $4,019 in addition to the disability amount of $6,890. Complete the calculation for line 5844 on the Provincial Worksheet to determine your claim.

Line 5848 - Disability amount transferred from a dependant (other than your spouse or common-law partner)

You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1. Complete the calculation for line 5848 on the Provincial Worksheet to determine your claim.

Line 5852 - Interest paid on your student loans

Enter on this line the same amount that you claimed on line 319 of your federal Schedule 1.

Line 5856 - Your tuition and education amounts

Complete Schedule SK(S11), Provincial Tuition and Education Amounts, to calculate your claim.

Receipts - If you are filing a paper return, attach the completed Schedule SK(S11). Whether you are filing a paper return or electronically, keep your forms and official tuition fees receipts in case we ask to see them.

Transferring and carrying forward amounts

You may not need all of your 2007 tuition and education amounts to reduce your provincial income tax to zero. In this case, you can transfer all or some of the unused part to one person, either your spouse or common-law partner (who would claim it on line 5864), your parent or grandparent, or your spouse or common-law partner's parent or grandparent (who would claim it on line 5860).

You can only transfer an amount to your parent or grandparent, or your spouse or common-law partner's parent or grandparent, if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.

Complete the "Transfer/Carryforward of unused amount" section of Schedule SK(S11) to calculate the provincial amount available to transfer, as well as Form T2202, Education and Textbook Amounts Certificate, T2202A, Tuition, Education and Textbook Amounts Certificate, TL11A, Tuition, Education and Textbook Amounts Certificate - University Outside Canada, or TL11C, Tuition, Education and Textbook Amounts Certificate - Commuter to the United States, to designate who can claim it and the amount the person can claim. This amount may be different from the amount calculated for the same person on your federal Schedule 11. You must enter the provincial amount you are transferring on line 20 of your Schedule SK(S11).

Tax Tip
If you are transferring an amount to a designated person, only transfer the amount this person can use. That way, you can carry forward as much as possible to use in a future year.

Complete the "Transfer/Carryforward of unused amount" section of Schedule SK(S11) to calculate the amount you can carry forward to a future year. This amount corresponds to the part of your tuition and education amounts you do not need to use (and do not transfer) for the year.

Line 5860 - Tuition and education amounts transferred from a child

You can claim this amount if the rules are met for claiming an amount on line 324 of your federal Schedule 1.

Enter on line 5860 the total of all provincial amounts transferred to you that each student designated on his or her Form T2202, T2202A, TL11A, or TL11C.

Notes
The student must have entered this amount on line 20 of his or her Schedule SK(S11). He or she may have chosen to transfer an amount that is less than the available provincial amount. The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year.

If the student was a resident of another province or territory on December 31, 2007, special rules may apply. Call the Canada Revenue Agency (CRA) to determine the amount you can claim on line 5860.

Other rules may apply if the student has a spouse or a common-law partner. See line 324 in the General Income Tax and Benefit Guide.

Receipts - If you are filing a paper return, do not include the student's Schedule SK(S11), forms, or official tuition fees receipts. Whether you are filing a paper return or electronically, keep all of your documents in case we ask to see them.

Line 5864 - Amounts transferred from your spouse or common-law partner

You can claim these amounts if the rules are met for claiming the amount on line 326 of your federal Schedule 1.

As a resident of Saskatchewan, you can also transfer the amount for dependent children born in 1989 or later, and the Senior supplementary amount.

Complete Schedule SK(S2), Provincial Amounts Transferred From Your Spouse or Common-Law Partner, to calculate your claim. Attach this schedule to your return.

Line 5868 - Medical expenses

The medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2007, but must not have been claimed on a 2006 return.

Line 5872 - Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can also claim medical expenses for other dependants.

The medical expenses you use to calculate your claim on line 5872 are the same as those used to calculate your federal claim on line 331 of federal Schedule 1. They have to cover the same 12-month period ending in 2007 and must not have been claimed on a 2006 return.

The maximum amount you can claim is $10,000 for each dependant.

Line 5877 - Graduate tax exemption amount

You can claim this amount if you are a resident of Saskatchewan at the end of the year and you meet all of the following conditions:

• you completed an eligible program of post secondary studies in 2006 or 2007, and you met the necessary qualifications for graduation; and
• you applied for and obtained an exemption certificate from Saskatchewan Advanced Education and Employment certifying your entitlement to this credit for 2007.

You can only claim an amount on line 5877 if you were issued an exemption certificate. This amount cannot be transferred to another person.

You must claim this credit in the year for which the exemption certificate was issued.

If you qualify for this amount, enter $10,000 on line 5877 even if you do not need all of your 2007 graduate tax exemption amount to reduce your provincial tax to zero.

Any unused amount will be shown on your Notice of Assessment or Notice of Reassessment. You can carry forward any unused amount for up to 5 years.

Receipts- Attach your exemption certificate to your paper return. If you are filing electronically, keep all of your documents in case we ask to see them.

Line 5896 - Donations and gifts

To calculate your claim for line 5896, enter the amounts from lines 345 and 347 of federal Schedule 9 and multiply them by the rates on lines 28 and 29 on Form SK428.

Step 2 - Saskatchewan tax on taxable income

Enter on line 32 your taxable income from line 260 of your return. Use this amount to determine which one of the three columns you have to complete. Enter this amount on line 33 of the applicable column and complete the calculation.

Step 3 - Saskatchewan tax

Line 41 - Saskatchewan farm and small business capital gains tax credit

If, in 2007, you reported capital gains from the disposition of qualified farm property or qualified small business corporation shares, you may qualify for this tax credit.

To claim the credit, get Form T1237, Saskatchewan Farm and Small Business Capital Gains Tax Credit, from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter, on line 41 of Form SK428, the tax credit calculated on line 32 of Form T1237.

Receipts - If you are filing a paper return, attach Form T1237. If you are filing electronically, keep all your documents in case we ask to see them.

Line 43 - Saskatchewan tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the provincial tax that applies to this income. Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. You can find more information on tax on split income in the General Income Tax and Benefit Guide.

Line 51 - Saskatchewan additional tax for minimum tax purposes

If you have to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you will also have to determine your Saskatchewan additional tax for minimum tax purposes.

To do this, complete the calculation on line 51 of Form SK428. You can find information about minimum tax in the General Income Tax and Benefit Guide.

Line 53 - Provincial foreign tax credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be eligible to claim a provincial foreign tax credit.

To claim the credit, get Form T2036, Provincial or Territorial Foreign Tax Credit, from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter, on line 53 of Form SK428, the tax credit amount calculated on line 5 of Form T2036.

Receipts - Attach Form T2036 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Line 55 - Royalty tax rebate

Unused royalty tax rebate

If you had any unused amount of Saskatchewan royalty tax rebate in 2006, enter on line 55 of Form SK428 the rebate shown on line 27 of your 2006 Form T82, Saskatchewan Royalty Tax Rebate.

Receipts – Attach a copy of your 2006 Form T82 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Lines 57 and 58 - Political contribution tax credit

You can claim this credit if you contributed to a registered Saskatchewan political party or to an independent candidate in a Saskatchewan provincial election. Only claim amounts from your official receipts for 2007. Official receipts can be issued only for contributions of at least $25.

How to claim

Enter the total of your official receipts for Saskatchewan political contributions on line 57 of Form SK428, and determine the amount to enter on line 58 as follows:

• If the total of your official receipts is not more than $1,275, complete the calculation for line 58 on the Provincial Worksheet.
• If the total of your official receipts is more than $1,275, enter $650 on line 58 of Form SK428.

Receipts - Attach to your paper return official receipts signed by an official agent of the political party or independent candidate. If you are filing electronically, keep all your documents in case we ask to see them.

Lines 60 to 62 - Labour-sponsored venture capital tax credit

You can claim this credit if you were a resident of Saskatchewan at the end of the year and you made an eligible investment in a labour-sponsored venture capital corporation that invests in small and medium-size businesses.

You can claim a credit for investments made in 2007 (that you did not claim on your 2006 return) or in the first 60 days of 2008. If an RRSP for a spouse or common-law partner became the first registered holder of the share, either the RRSP contributor or annuitant may claim this credit for that share.

If you invested in a labour-sponsored venture capital corporation that is registered in Saskatchewan, enter the credit shown on Slip T2C (SASK.), Saskatchewan Tax Incentive (issued by the Saskatchewan Department of Industry and Resources), to a maximum of $1,000, on line 60 of Form SK428.

If you invested in a labour-sponsored venture capital corporation that is registered federally, enter the credit shown on Slip T2C (SASK.), Saskatchewan Tax Incentive (issued by the Saskatchewan Department of Industry and Resources), to a maximum of $525, on line 61 of Form SK428.

The maximum labour-sponsored venture capital tax credit you can claim on line 62 of Form SK428 is $1,000.

Receipts - Attach Slip T2C (SASK.) to your paper return. If you are filing electronically, keep it in case we ask to see it.

Lines 64 to 68 - Saskatchewan employee's tools tax credit

You can claim this credit if you were a resident of Saskatchewan at the end of 2007 and you were required to supply your own tools as a condition of employment.

To claim the credit, get Form T1284, Saskatchewan Employee's Tools Tax Credit, from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter, on line 64 of Form SK428, the one-time trade entry credit from part 3 of Form T1284.

If you do not need all of your 2007 one-time trade entry credit to reduce your provincial tax to zero, you can carry forward any unused amount for two years.

Any unused one-time trade entry credit is shown on your most recent Notice of Assessment or Notice of Reassessment. Enter this amount on line 65 of Form SK428.

Enter, on line 66 of Form SK428, the annual maintenance credit from part 4 of Form T1284.

Receipts - If you are filing a paper return, attach a copy of Form T1284. If you are filing electronically, keep all your documents in case we ask to see them.

Line 70 - Saskatchewan post-secondary graduate tax credit

Any unused post-secondary graduate tax credit is shown on your Notice of Assessment or Notice of Reassessment. Enter any unused amount from a previous year on line 70 of Form SK428.

Note
If you claimed the post-secondary graduate tax credit in 2006, you may have received a certificate for 2007 to claim the graduate exemption amount. See line 5877 for more information.

Line 72 - Saskatchewan mineral exploration tax credit

Unused mineral exploration tax credit

Any unused tax credit is shown on your most recent Notice of Assessment or Notice of Reassessment. Enter any unused credits from previous years on line 72 of Form SK428 to reduce your 2007 Saskatchewan tax.