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• Schedule A, Statement of World Income
• Minimum tax

Attach a completed Schedule 1 to your return.

Generally, the federal tax you have to pay is based on your taxable income (line 260). Use Schedule 1 to determine your federal income tax, which includes the surtax for non-residents of Canada and deemed residents of Canada. For information about calculating your provincial or territorial tax, see line 428.

Non-residents electing under section 217 - Your federal tax is based on the greater of your taxable income (line 260) or your net world income after adjustments (line 16 on Schedule A, Statement of World Income). In addition, you may be entitled to the section 217 tax adjustment. For more information, see line 445.

Schedule A, Statement of World Income

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

Non-residents and non-residents electing under section 216.1 - Complete and attach Schedule A to your return. Your net world income is used to determine your allowable non-refundable tax credits on Schedule B, Allowable Amount of Non-Refundable Tax Credits.

Non-residents electing under section 217 - Complete and attach Schedule A to your return. Your net world income is used to determine your allowable non-refundable tax credits on Schedule B, and to calculate your federal tax on Schedule 1, and the section 217 tax adjustment on Schedule C, Electing under Section 217 of the Income Tax Act.

Minimum tax

Minimum tax limits the tax advantage you can receive in a year from certain incentives. You have to pay minimum tax if it is more than the federal tax you calculate in the usual manner. When calculating your taxable income for this tax, which does not apply to a person who died in 2011, you are allowed a basic exempt amount of $40,000.

Generally, to find out if you have to pay this tax, add the amounts shown in B later in this section and 60% of the amount on line 127 of your return. If the total is $40,000 or less, you probably do not have to pay minimum tax. If the total is more than $40,000, you may have to pay it.

Use Form T691, Alternative Minimum Tax, to determine if you have to pay minimum tax.

You may have to pay minimum tax if:

A. You reported a taxable capital gain on line 127 of your return.

B. You claimed any of the following on your return:

• a loss (including your share of a partnership loss) resulting from, or increased by, claiming capital cost allowance on rental properties;
• a loss from a limited partnership;
• most carrying charges (line 221) on certain investments;
• a loss from resource properties resulting from, or increased by, claiming a depletion allowance, exploration expenses, development expenses, or Canadian oil and gas property expenses;
• a deduction on line 248 for an employee home relocation loan; or
• a deduction on line 249 for security options.

C. You claimed any of the following tax credits on Schedule 1:

• a federal political contribution tax credit on lines 409 and 410;
• an investment tax credit on line 412;
• a labour-sponsored funds tax credit on line 414;
• a federal dividend tax credit on line 425; or
• an overseas employment tax credit on line 426.

Tax Tip
You may be able to claim a credit against your taxes for 2011 if you paid minimum tax on any of your returns for 2004 to 2010 (see line 427).

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