5000-G Rev. 01

What's new for 2001?

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 2001 or as of the dates indicated. For more details on these and other changes, see the areas outlined in this guide.

Provincial or territorial tax - Residents of all provinces and territories except Quebec now calculate their provincial or territorial non-refundable tax credits on Form 428, separately from federal non-refundable tax credits, which they calculate on Schedule 1. The same rules apply for claiming both kinds of credits, but, for most provinces and territories, the amounts used in calculating them are different. See Form 428 and Schedule 1 in the forms book for details.

Identification - You now have to enter your current province or territory of residence and your spouse or common-law partner's net income, if it applies. See page 12 for details.

Spouse - Throughout this guide, where previously we referred to "spouse" we now also refer to "common-law partner." You will find the definitions of these terms on page 12.

Elections Canada - You may be able to ask, on your return, for your information to be added to the National Register of Electors.

GST/HST credit - Certain rules and procedures for calculating this credit have changed. See details.

Instalments - If you should be paying your taxes by instalments you can authorize us to withdraw the payments automatically from your account at a financial institution. To do so, or for more information, get Form T1162A, Pre-Authorized Payment Plan (Personal Quarterly Instalment Payments).

Interest and other investment income (line 121) - You may not have to include an amount in your income for receiving certain shares from corporations outside Canada.

Other income (line 130) - Do not include the federal "Relief for heating expenses" payment if you received it. This amount is not taxable.

Deduction for CPP or QPP contributions on self-employment and other earnings (line 222) - You now can claim a deduction for part of these contributions.

Clergy residence deduction (line 231) - Your employer has to certify that you qualify for this deduction. In addition,the way you calculate it has changed. For more information, get Form T1223, Clergy Residence Deduction.

Equivalent-to-spouse amount (line 305) - This amount now is called "Amount for an eligible dependant."

Amount for infirm dependants age 18 or older (line 306) - This amount has increased. For details, see the Federal Worksheet in the forms book.

CPP or QPP contributions on self-employment and other earnings (line 310) - The credit you can claim for these contributions has decreased because of the new deduction on line 222.

Caregiver amount (line 315) - This amount has increased. For details, see the Federal Worksheet in the forms book.

Disability amount and supplement (line 316) - These amounts have increased.

Tuition and education amounts (line 323) - The education amount has increased.

Refundable medical expense supplement (line 452) - You now calculate this credit on the Federal Worksheet. Schedule 10 has been eliminated.

Federal individual surtax - This surtax has been eliminated.

Federal tax - The rates you use to calculate your federal tax on Schedule 1 have changed. In addition, lines 409 to 418, which were on page 4 of your return, now are on Schedule 1.

Federal non-refundable tax credits - The rate you use to calculate these credits has changed. In addition, you now claim them on Schedule 1 instead of on page 3 of your return.

Did You Know?

You could be eligible for a monthly Canada Child Tax Benefit payment

• Complete the Canada Child Tax Benefit Application form for each child in your care.
• Both spouses or common-law partners have to file a tax return.
• To avoid delays in receiving your payments, make sure we have your current address.
• For more information, see page 7 in this guide.

You could be eligible for a GST/HST credit

• Apply when you file a tax return.
• To avoid delays in receiving your payments, make sure we have your current address.
• For more information, see page 12 in this guide.