Use the left navigation menu to access the general table of contents or any other section of this guide.

On this page…

• Is this guide for you?
• What's new for 2010?
• Elections Canada
• National Register of Electors (the Register)
  • If you tick "Yes" to both questions
  • If you tick "No" (or do not make a choice)
  • Removal from the Register
  • Deceased persons
  • Contacting Elections Canada
• Before you start
  • Do you have to file a return?
  • What date is your return for 2010 due?
  • What penalties and interest do we charge?
  • Social insurance number (SIN)
  • Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)
  • Universal Child Care Benefit (UCCB)
  • Which tax and benefit package should you use?
• Getting Started
  • What if you are missing information?
• Identification
  • Personal label
  • Information about your residence
  • Marital status
  • Information about your spouse or common-law partner
• Goods and services tax/harmonized sales tax (GST/HST) credit application

Is this guide for you?

This guide will help you complete your 2010 income tax and benefit return. It is important to use the package for the province or territory where you lived at the end of the year so that your provincial or territorial tax and credits can be calculated properly. To make sure you are using the correct package, see Which tax package should you use?

What's new for 2010?

We list the major changes below, including income tax changes that have been announced but were not law at the time of printing. If they become law as proposed, they will be effective for 2010 or as of the dates indicated. For more information on these and other changes, see the areas outlined in this guide.

Universal Child Care Benefits (UCCB) (line 117) - If you were a single parent on December 31, 2010, you can choose to include all UCCB amounts you received in 2010 in the income of a dependant. For more information, see Universal Child Care Benefit (UCCB).

Election to defer security option benefits (line 101) - If you exercised an option and bought eligible securities after 4:00 p.m. EST on March 4, 2010, the election to defer the security option benefits will no longer be available for those securities. For more information, see security option benefits.

Special relief for tax deferral elections on security option benefits (lines 127 and 249) - You may elect for special relief in respect of gains from a disposition of eligible securities on which you elected in a previous year to defer the security option benefits. For more information, see Form RC310, Election for Special Relief for Tax Deferral Election on Employee Security Options, or Guide T4037, Capital Gains.

Scholarship exemption and Education amount (lines 130 and 323) - Post-secondary programs consisting mainly of research are eligible for the scholarship exemption and the education amount only if they lead to a college or CEGEP diploma, or a bachelor, masters, or doctoral (or equivalent) degree. Post-doctoral fellowships are taxable. For more information, see Pamphlet P105, Students and Income Tax.

For a scholarship, fellowship, or bursary received in connection with a part-time program for which you can claim the part-time education amount in respect of that program, the scholarship exemption is equal to the amount of tuition paid for the program plus the costs of program related materials. For more information, go to our Students, page or see Pamphlet P105.

U.S. Social Security benefits (line 256) - If you received U.S. Social Security benefits in 2010, you may be eligible to claim a deduction of 50% of the benefits received. For more information, see the Exempt foreign income section.

Employment Insurance premiums on self employment and other eligible earnings (lines 317 and 430) - You may be able to enter into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the new Employment Insurance (EI) Measure for Self-Employed People. For information on how to calculate your premiums, see lines 376, 378, and Refund or Balance owing. For more information about this measure, contact Service Canada.

Medical expenses (lines 330 and 331) - Cosmetic procedures and related expenses qualify as a medical expense when incurred after March 4, 2010, only if they are required for medical or reconstructive purposes. For more information,
see Guide RC4064, Medical and Disability Related Information.

Investment tax credit (line 412) - Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2011. For more information, see Investment tax credit.

Rollover of RRSP proceeds to a registered disability savings plan (RDSP) - As of July 1, 2011, for deaths occurring after March 3, 2010, the existing RRSP rollover rules will be extended to allow a rollover of a deceased individual’s RRSP proceeds to the RDSP of the deceased individual’s financially dependent infirm child or grandchild. These rules will also apply to amounts transferred to an RDSP from registered retirement income fund (RRIF) proceeds and certain lump-sum amounts paid from registered pension plans (RPP).

In addition, where the death of an RRSP annuitant occurs after 2007 and before 2011, special transitional rules will allow a contribution to be made to the RDSP of a financially dependent infirm child or grandchild of the annuitant that will provide a similar result to these measures. To be eligible, the contribution to an RDSP can only be made after June 30, 2011, and, when the death of the annuitant occurs after 2007 and before 2011, the contribution must be made before 2012. This means individuals will have six months in which to make the contribution to an RDSP. For updated information on these changes, go to our Registered disability savings plan (RDSP).

National Register of Electors (the Register)

The Register contains the name, sex, date of birth, address, and unique identifier of eligible electors (Canadian citizens who are 18 years of age or older) and is used to produce electoral lists and to communicate with electors for federal elections or referendums. Note that inclusion in the Register is at the option of the elector. Consenting to provide your information to Elections Canada will help ensure you are correctly registered.

Elections Canada will only use the information you provide for purposes permitted under the Canada Elections Act. The Canada Elections Act allows for the electoral lists produced from the Register to be shared with provincial/territorial electoral agencies for uses permitted under their respective legislation. The Canada Elections Act also provides for electoral lists that do not include date of birth information to be shared with Members of Parliament, registered political parties and candidates at election time.

Response instructions (responding to questions is optional)

If you are a Canadian citizen, tick the "Yes" box next to question A ("Are you a Canadian citizen?") on page 1 of your return. If you are not a Canadian citizen, tick the "No" box next to question A.

If you are a Canadian citizen, and you would like to authorize the Canada Revenue Agency (CRA) to give your name, address, date of birth, and Canadian citizenship status to Elections Canada, tick the "Yes" box next to question B ("As a Canadian citizen, do you authorize the Canada Revenue Agency to give your name, address, date of birth, and citizenship to Elections Canada to update the National Register of Electors?") on page 1 of your return. If you are a Canadian citizen but do not authorize the CRA to give this information to Elections Canada, tick the "No" box next to question B.

This information is not used by the CRA for the purpose of processing your return.

If you tick "Yes" to both questions

• You authorize the CRA to give only your name, address, date of birth, and Canadian citizenship status to Elections Canada to ensure that your information is up to date.
• If you are an eligible elector who is not already in the Register, Elections Canada will accept this as your request to have your information added to it.

Notes
The CRA updates the information provided to Elections Canada every month. Your authorization remains in effect until you file your next return. Therefore, if you move during this period, and you advise the CRA of your new address, the CRA will advise Elections Canada the next time information is provided.

If, during the year, you change your mind about the CRA sending your information to Elections Canada, contact the CRA at 1-800-959-8281 to have your consent removed. However, your information will remain on the Register. To remove your information from the Register, see Removal from the Register below.

If you tick "No" to one or both questions (or do not make a choice)

• The CRA will not give any of your information to Elections Canada.
• You will not lose your right to vote.
• Elections Canada will not remove your information from the Register if it is already there.
• If there is an election or referendum and you are not already registered, in order to vote, you will have to take the necessary steps to be added to the electoral list. More information can be obtained directly from Elections Canada.

Removal from the Register

You can write to Elections Canada to request to be removed from the Register, or that your information not be shared with provincial/territorial electoral agencies that use it to produce their electoral lists.

Deceased persons

If the return is being completed for a person who consented to provide information to Elections Canada on his or her last return but has since died, the CRA will notify Elections Canada to remove the person's name from the Register.

For more information contact Elections Canada

General information

Before you start

Do you have to file a return?

You must file a return for 2010 if any of the following situations apply:

• You have to pay tax for 2010.
• We sent you a request to file a return.
• You and your spouse or common-law partner elected to split pension income for 2010. For more information, see lines 115, 116, 129 and 210.
• You received Working Income Tax Benefit (WITB) advance payments in 2010, and you want to apply for WITB advance payments for 2011.
• You disposed of capital property in 2010 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2009 return).
• You have to repay any of your Old Age Security or Employment Insurance benefits. For more information, see line 235.
• You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For more information, see Guide RC4135, Home Buyers' Plan (HBP), or Guide RC4112, Lifelong Learning Plan (LLP).
• You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2010, the total of your net self-employment income and pensionable employment income is more than $3,500. For more information, see line 222.

• You are paying Employment Insurance premiums on self employment and other eligible earnings. For more information, see lines 317 and 430.

Even if none of these requirements apply, you may want to file a return if any of the following situations apply:

• You want to claim a refund.
• You want to claim the WITB for 2010.
• You want to apply for the GST/HST credit (including any related provincial credit). For example, you may be eligible if you turn 19 before April 2012.
• You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments.
• You have incurred a non-capital loss (see line 236) in 2010 that you want to be able to apply in other years.
• You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts (see line 323).
• You want to report income for which you could contribute to an RRSP in order to keep your RRSP deduction limit for future years up to date.
• You want to carry forward the unused investment tax credit on expenditures you incurred during the current year (see line 412).

What date is your return for 2010 due?

Generally, your return for 2010 has to be filed on or before April 30, 2011.

Note
If you file your return after April 30, 2011, your GST/HST credit (including any related provincial credit), Canada Child Tax Benefit payments (including those from certain related provincial or territorial programs), and Old Age Security benefit payments may be delayed.

Self-employed persons - If you or your spouse or common-law partner carried on a business in 2010 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2010 has to be filed on or before June 15, 2011. However, if you have a balance owing for 2010, you still have to pay it on or before April 30, 2011. For more information on how to make your payment, see line 485.

Deceased persons

If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in 2010, you may have to file a return for 2010 for that individual. For more information about your filing requirements and options, and to know what documents are required, see Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to do following a death.

Note
If you received income in 2010 for a person who died in 2009 or earlier, do not file an individual return for 2010 for that income on behalf of that person. However, you may have to file a T3 Trust Income Tax and Information Return for the estate.

Exception to due date of your return

When a due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, we consider your return to be filed on time or your payment to be made on time if we receive it or it is postmarked on the next business day. For more information, go to our Important dates for 2010 (Individuals) page.

What penalties and interest do we charge?

Late filing penalty

If you owe tax for 2010 and do not file your return for 2010 within the dates we specify under What date is your return for 2010 due? in the previous section, we will charge you a late-filing penalty. The penalty is 5% of your 2010 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

If we charged a late-filing penalty on your return for 2007, 2008, or 2009, your late-filing penalty for 2010 may be 10% of your 2010 balance owing, plus 2% of your 2010 balance owing for each full month that your return is late, to a maximum of 20 months.

Tax Tip
Even if you cannot pay the full amount of your balance owing on or before April 30, 2011, you can avoid the late-filing penalty by filing your return on time.

We may waive or cancel this penalty as well as any interest that may apply if you file your return late because of circumstances beyond your control. If this happens, complete Form RC4288, Request for Taxpayer Relief, and mail it to us. Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2011 must relate to the 2001 or a later tax year to be considered. For more information, see Information Circular IC07-1, Taxpayer Relief Provisions.

Repeated failure to report income penalty

If you failed to report an amount on your return for 2010, and you also failed to report an amount on your return for 2007, 2008, or 2009, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. The federal and provincial/territorial penalties are each 10% of the amount you failed to report on your return for 2010.

However, if you voluntarily tell us about an amount you failed to report, we may waive these penalties. For more information, see What is voluntary disclosure?, or go to our Voluntary Disclosures Program page.

False statements or omissions penalty

You may have to pay a penalty if you knowingly or under circumstances amounting to gross negligence, have made a false statement or omission on your 2010 return.

The penalty is equal to the greater of:

• $100; and
• 50% of the understatement of tax and/or the overstatement of credits related to the false statement or omission.

However, if you voluntarily tell us about an amount you failed to report and/or an overstatement of credits, we may waive this penalty. For more information, see What is voluntary disclosure?, or go to our Voluntary Disclosures Program page.

Interest

If you have a balance owing for 2010, we charge compound daily interest starting May 1, 2011, on any unpaid amounts owing for 2010. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties indicated in the previous sections, starting the day after your return is due.

When will we pay interest?

We will pay you compound daily interest on your tax refund for 2010. The calculation will start on whichever of the following three dates is latest:

• May 31, 2011;
• the 31st day after you file your return; or
• the day after you overpaid your taxes.

Social insurance number (SIN)

Your SIN is the authorized number for income tax purposes under section 237 of the Income Tax Act and is used under certain federal programs. You have to give it to anyone who prepares information slips (such as a T3, T4, or T5 slip) for you. Each time you do not give it when you are supposed to, you may have to pay a $100 penalty. Check your slips. If your SIN is missing or is incorrect, inform the slip preparer. You also have to give it to us when you ask us for personal tax information.

Your SIN card is not a piece of identification, and it should be kept in a safe place. For more information, or to get an application for a SIN, contact Service Canada. You can find the addresses and telephone numbers of their offices on their Web site or in the government section of your telephone book.

Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)

If you are responsible for the care and upbringing of a child who is under 18 years of age, you can apply for the CCTB for that child. Apply as soon as possible after the child is born or begins to live with you.

You can apply by:

• using Apply for child benefits on our My Account page;
• sending a completed Form RC66, Canada Child Benefits Application; or
• giving your consent on the provincial/territorial birth registration form. For more information about this new application, see Pamphlet T4114, Canada Child Benefits.

This information is also used to apply for payments from certain related provincial or territorial programs. If you are a permanent resident, temporary resident, or protected person (refugee) as defined in the Immigration and Refugee Protection Act, you should apply as soon as possible after you and your child arrive in Canada.

In addition to the CCTB, you can also receive a CDB if your child meets the criteria for the disability amount and we have approved Form T2201, Disability Tax Credit Certificate, for that child.

The CCTB and CDB are based on the net income (line 236) shown on your return and, if applicable, your spouse's or common-law partner's return minus any amount you or your spouse or common-law partner reported on lines 117 and 125. If you or your spouse or common-law partner deducted an amount on line 213, and/or the amount for a repayment of registered disability savings plan income included on line 232, we will add these amounts to your or your spouse’s or common-law partner’s net income. Therefore, to qualify for these benefits, you both have to file a return every year, even if there is no income to report.

To view your CCTB account, go to our My Account page. For more information regarding the CCTB or CDB, go to our Child and Family Benefits page, see Pamphlet T4114, Canada Child Benefits, or call us at 1-800-387-1193.

Universal Child Care Benefit (UCCB)

If you are responsible for the care of a child under six years of age, you may be eligible to receive $100 per month for each qualified dependant.

Enrolment for the UCCB is processed through the CCTB application. For more information on how to apply, read the previous section called Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB).

While the UCCB is taxable, it will not be taken into account in calculating your GST/HST credit (including any related provincial credit), your CCTB payments (including those from certain related provincial or territorial programs), the social benefits repayment (line 235), the refundable medical expense supplement (line 452), or the Working Income Tax Benefit (WITB) (line 453). Read the instructions for line 117 to find out how to report the UCCB.

To view your UCCB account, go to our My Account page. For more information regarding the UCCB, go to our Universal Child Care benefit (UCCB) page, see Pamphlet T4114, Canada Child Benefits, or call us at 1-800-387-1193.

Which tax package should you use?

Generally, you have to use the package for the province or territory where you resided on December 31, 2010. However, there are exceptions (see next section) such as if you had residential ties (see definition below) in another place. You should have received the package you need based on our records.

If you resided in Quebec on December 31, 2010, use the package for residents of Quebec to calculate your federal tax only. You will also need to file a Quebec provincial return.

Residential ties - These ties include where your home (owned or leased) and personal property are and where your spouse or common-law partner or dependants reside. Other ties that may be relevant include social ties, driver's licence, bank accounts or credit cards, and provincial or territorial hospitalization insurance. For more information, see Interpretation Bulletin IT-221, Determination of an Individual's Residence Status.

Exceptions

In the following situations, you should use the package indicated:

How can you get the tax package you need?

To find out how to get a General forms book and guide for a particular province or territory, go to our Forms and publications page. In addition, you can get the package for non-residents and deemed residents of Canada from us or any Canadian embassy, high commission, or consulate.

Other publications you may need

Unless you resided in Canada all year, you also need one or more of the following publications:

• If you were a non-resident and you earned income from employment or a business with a permanent establishment in Canada, get Guide T4058, Non-Residents and Income Tax.
• If you were a non-resident and you received rental income from real property in Canada, get Guide T4144, Income Tax Guide for Electing Under Section 216.
• If you were a non-resident and you received certain other kinds of income from Canada (including pensions and annuities), get Pamphlet T4145, Electing Under Section 217 of the Income Tax Act.
• If you were a newcomer to Canada in 2010, get Pamphlet T4055, Newcomers to Canada.
• If you emigrated from Canada during 2010, get Guide T4056, Emigrants and Income Tax.
• If you will be outside Canada for an extended period, get Pamphlet T4131, Canadian Residents Abroad.

For more information, contact the International Tax Services Office at 1-800-267-5177 . If you are calling from outside Canada and the United States, call 613-952-3741 .

Getting started

Gather all documents needed to complete your return. This includes information slips (such as T3, T4, T4A, and T5 slips) and receipts for any deductions or credits you plan to claim. Refer to the guide as you find lines on the return that apply to you, or see the back of your information slips for more instructions.

You can file electronically or file a paper return. No matter how you file, see What do you include with your return and what records do you keep?.

What if you are missing information?

If you have to file a return for 2010, make sure you file it on time even if some slips or receipts are missing. You are responsible for reporting your income from all sources to avoid possible interest and/or penalties that may be charged. If you know that you will not be able to get a slip by the due date, attach a note to your paper return stating the payer’s name and address, the type of income involved, and what you are doing to get the slip. Use any pay stubs or statements you may have to estimate the income to report and any related deductions and credits you can claim. Enter the estimated amounts on the appropriate lines of your return. Attach the pay stubs or statements to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Note
You should have received most of your slips and receipts by the end of February. However, T3, T5013, and T5013A slips do not have to be sent before the end of March.

Identification, income, and deductions

Identification

Follow the instructions on the return to complete this area. Incomplete or incorrect information may delay the processing of your return and any refund, credit, or benefit, such as any GST/HST credit and Canada Child Tax Benefit payments you may be entitled to receive.

Personal label

If you have a personal label, attach it to your return. If your name, address, or social insurance number (SIN), or your spouse's or common-law partner's SIN, is incorrect, put a line through the wrong information, and print your changes clearly on the label.

We may modify part of your address to meet Canada Post's requirements. Therefore, the address on your package, your notice of assessment, or other correspondence we send you may be different from the one you indicate on your return.

Information about your residence

On the first line, enter the province or territory where you lived or of which you were considered to be a factual resident on December 31, 2010. We need to know this to calculate your taxes and credits correctly. For more information, see Which tax package should you use?.

On the second line, enter the province or territory where you live now, if it is different from your mailing address. We need to know this to calculate certain provincial or territorial credits and benefits you may be entitled to receive.

On the third line, if you were self-employed in 2010, enter the province or territory where you had a permanent business establishment.

On the last line, if you became or ceased to be a resident of Canada for income tax purposes during 2010, enter your date of entry or departure, whichever applies.

Marital status

Tick the box that applied to your status on December 31, 2010. Tick "Married" if you had a spouse, or "Living common-law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Tick one of the other boxes only if neither of the first two applied.

Note
If your marital status changes during the year, and you are entitled to any GST/HST credit, Universal Child Care Benefit, or Canada Child Tax Benefit payments, or Working Income Tax Benefit (WITB) advance payments, be sure to let us know and send us a completed Form RC65, Marital Status Change.

Spouse

This applies only to a person to whom you are legally married.

Common-law partner

This applies to a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c)) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Reference to "12 continuous months" in this definition includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

Information about your spouse or common-law partner

You must provide us with the following information, if applicable:

• your spouse’s or common-law partner's social insurance number if it is not on the label or if you are not attaching a label;
• your spouse’s or common-law partner’s first name;
• your spouse's or common-law partner's net income - enter the amount from line 236 of your spouse’s or common-law partner’s return, or the amount that it would be if he or she filed a return. Enter this amount even if it is zero. We use this information in calculating the GST/HST credit and certain other credits and benefits;
  
  Note
  Even though you show this amount on your return, your spouse or common-law partner may still have to file a return for 2010.

• your spouse's or common-law partner's Universal Child Care Benefit - enter the amount from line 117 of your spouse’s or common-law partner’s return, or the amount that it would be if he or she filed a return. Although this amount is included in your spouse’s or common-law partner’s net income, we will subtract this amount in calculating certain credits and benefits; and
• your spouse's or common-law partner's Universal Child Care Benefit repayment - enter the amount from line 213 of your spouse’s or common law partner’s return, or the amount that it would be if he or she filed a return. Although this amount is deducted in the calculation of your spouse’s or common law partner’s net income, we will add this amount in calculating certain credits and benefits.

Goods and services tax/harmonized sales tax (GST/HST) credit application

To receive this credit, including any related provincial credit, you have to apply for it, even if you received it last year. Complete the application area on page 1 of your return for 2010. Your credit is based on the number of children you have and your net income added to the net income of your spouse or common law partner (if you have one), minus any amount you or your spouse or common law partner reported on lines 117 and 125 . If you or your spouse or common-law partner deducted an amount on line 213, and/or the amount for a repayment of registered disability savings plan income included on line 232, we will add these amounts to your or your spouse's or common-law partner's net income.

This information is also used to calculate any payments from certain related provincial programs. Net income is the amount on line 236 of a person's return, or the amount that it would be if the person filed a return.

In the Identification area on page 1 of your return, enter your marital status and, if it applies, the information concerning your spouse or common-law partner (including his or her net income, even if it is zero). Otherwise, your application may be delayed. Either you or your spouse or common-law partner can receive the credit, but not both of you. No matter which one of you applies, the credit will be the same.

To view your GST/HST credit account, go to our My Account page . For more information on the GST/HST credit and related provincial credits, go to our Child and Family Benefits page, see Pamphlet RC4210, GST/HST Credit, or call 1-800-959-1953 .