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ARCHIVED - 5008-N Completing Your Saskatchewan Form

Table of Contents

• Form SK428, Saskatchewan Income Tax and Credits
• Step 1 - Saskatchewan tax on taxable income
• Step 2 - Saskatchewan non-refundable tax credits
• Step 3 - Saskatchewan tax

The information in this book will help you complete Form SK428, Saskatchewan Income Tax and Credits.

The terms spouse and common-law partner are defined on page 12 of the General Income and Benefit Guide.

The term end of the year means December 31, 2001, the date you left Canada if you emigrated in 2001, or the date of death for a person who died in 2001.

Tax tip
A growing number of Saskatchewan tax measures are distinct from corresponding federal measures. However, many rules relating to 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 2001 - Multiple Jurisdictions, before you complete Form SK428.

You also have to complete Form SK428 if you were a non-resident of Canada in 2001 and you earned income from employment in Saskatchewan or received income from a business with a permanent establishment only in Saskatchewan.

If you have to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, you will also have to determine your Saskatchewan minimum tax. To do this, complete Form T1219, Provincial Alternative Minimum Tax. You can find information about minimum tax on page 30 of the General Income Tax and Benefit Guide.

Step 1 - Saskatchewan tax on taxable income

Enter, on line 1, 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 2 of the applicable column and complete the calculation.

Step 2 - Saskatchewan non-refundable tax credits

Saskatchewan now has its own non-refundable tax credits. These credits reduce the amount of provincial tax you owe. However, if the total of these credits is more than the amount of provincial tax you owe, you will not get a refund for the difference.

The eligibility criteria and rules for claiming 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 new Provincial Worksheet included in this book.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315 and 316 of your federal Schedule 1, you are required to perform the same pro-ration on the corresponding provincial amounts at lines 5804 to 5820, 5821, 5822, 5840 and 5844.

Line 5804 - Basic personal amount

Claim the basic personal amount of $8,000.

Line 5808 - Age amount

You can claim this amount if you met the rules for claiming the corresponding federal amount on line 301 of your federal Schedule 1. Enter on line 5808 the same amount that you entered on line 301.

Line 5812 - Spouse or common-law partner amount

You can claim this amount if you met the rules for claiming the corresponding federal amount on line 303 of your federal Schedule 1 and 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 $8,800.

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

• $800 or less, enter $8,000 on line 5812;
• more than $800 but less than $8,800, complete the calculation to determine your claim and enter the result 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 you met the rules for claiming the corresponding federal amount on line 305 of your federal Schedule 1 and 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 $8,800.

If your dependant's net income is:

• $800 or less, enter $8,000 on line 5816; or
• more than $800 but less than $8,800, complete the chart for line 5816 on the Provincial Worksheet in this book to calculate your claim.

If you have not already completed the 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 you met the rules for claiming the corresponding federal amount on line 306 of federal Schedule 1 and 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 $8,466.

Complete the chart for line 5820 on the Provincial Worksheet in this book to calculate your claim.

Line 5821 - Amount for dependent children born in 1983 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 2001;
• the child lived with you at the end of the year (or on the date of death for a child who died in 2001) ; 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.

Enter beside box 6370 the number of dependent children you have. Claim $1,500 on line 5821 for each dependent child.

Only one person can claim this credit for the child. Where both parents are eligible to claim a child, the lower income parent should make the initial claim. Any unused amount may be transferred to the other parent. 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 2001 and you lived in Saskatchewan at the end of the year. You can claim it regardless of your net income.

If you are completing a return for a person who died in 2001, 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.

Claim $500 on line 5822.

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 the corresponding federal amount on line 314 of your federal Schedule 1. Enter on line 5836 the same amount that you entered on line 314.

Line 5840 - Caregiver amount

You can claim this amount if you met the rules for claiming the corresponding federal amount on line 315 of federal Schedule 1 and 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 $15,453.

Complete the chart for line 5840 on the Provincial Worksheet in this book to calculate 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 $6,000 on line 5844.
• If you were under 18 at the end of the year, complete the chart for line 5844 on the Provincial Worksheet in this book to calculate your claim.

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

You can claim this amount if you met the rules for claiming the corresponding federal amount on line 318 of federal Schedule 1.

Complete the chart for line 5848 on the Provincial Worksheet in this book to calculate 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 - Tuition and education amounts

The tuition and education amounts that you claimed, on line 323 of your federal Schedule 1, may be different than the provincial amounts you calculate.

Complete Part 1 of 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), but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Transferring and carrying forward amounts

You may not need all of your 2001 tuition and education amounts to reduce your provincial income tax to zero. In this case, you may transfer all or part of the unused portion to one person, either your spouse or common-law partner (who would claim it on line 5864), or 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 Part 2 of Schedule SK(S11) to calculate the provincial amount available to transfer, as well as the back of Form T2202, Education Amount Certificate, or T2202A, Tuition and Education Amounts Certificate, to designate who can claim it and the amount the person can claim. This amount may be different from the amount claimed federally by that same person.

You can carry forward and claim in a future year the part of your tuition and education amounts you do not need to use (and do not transfer) for the year. Complete Part 3 of Schedule SK(S11) to calculate the amount you can carry forward.

Line 5860 - Tuition and education amounts transferred from a child

You can claim this amount if you met the rules for claiming the corresponding federal 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 the back of his or her Form T2202 or T2202A and on line 20 of his or her Schedule SK(S11). The student may choose to transfer an amount that is less than the provincial amount allowable calculated in Part 2 of his or her Schedule SK(S11).

Note
The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year, but only those from 2001.

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

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

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

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

As a resident of Saskatchewan, you can also transfer the amount for dependant children born in 1983 or later, and the Senior supplementary amount.

To calculate your claim, complete Schedule SK(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner.

Receipts - If you are filing a paper return, do not include any receipts or forms [other than your own Schedule SK(S2)] for your spouse or common-law partner, but keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Line 5868 - Medical expenses

The allowable 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 2001, but must not have been claimed in 2000.

Line 5872 - Medical expenses adjustment

If you claimed, on line 5868, medical expenses for a dependant, other than your spouse or common-law partner, whose net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is more than $8,000, complete the calculation for line 5872 on the Provincial Worksheet in this book to determine the amount of the adjustment.

Tax Tip
Provincially, the medical expenses adjustment that you calculate will be less than the amount you calculated federally. If this is the case, and the adjustment you calculate is less than the total medical expenses for that dependant, it will be to your benefit to include these expenses at line 5868.

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 35 and 36 on Form SK428.

Step 3 - Saskatchewan tax

Line 40 - 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 additional information on tax on split income on page 14 in the General Income Tax and Benefit Guide.

Lines 51 and 52 - 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 contributions you made during 2001.

How to claim

Enter the total of your official receipts for Saskatchewan political contributions on line 51 of Form SK428, and determine the amount to enter on line 52 as follows:

• If the total of your official receipts is not more than $1,075, complete the chart for line 52 on the Provincial Worksheet in this book.
• If the total of your official receipts is more than $1,075, enter $500 on line 52 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 them in case we ask to see them.

Lines 54 to 56 - Saskatchewan 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 2001 (that you did not claim on your 2000 return) or in the first 60 days of 2002. 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 Form T2C (SASK.), Saskatchewan Tax Incentive (issued by the Saskatchewan Department of Economic Development), to a maximum of $1,000, on line 54.

If you invested in a labour-sponsored venture capital corporation that is registered federally, enter the credit shown on Form T2C (SASK.), Saskatchewan Tax Incentive (issued by the Saskatchewan Department of Economic Development), to a maximum of $525, on line 55.

The maximum labour-sponsored venture capital tax credit you can claim on line 56 is $1,000.

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

Lines 58 to 60 - Saskatchewan post-secondary graduate tax credit

You can claim a credit of $350 on line 58 if you meet all of the following conditions:

• you were a resident of Saskatchewan at the end of the year;
• you completed an eligible program of post-secondary studies and you met the necessary qualifications for graduation; and
• you applied for and obtained a tax credit certificate from the Saskatchewan Department of Post-Secondary Education, certifying your entitlement to and the amount of the credit.

You can carry forward any unused amount of Saskatchewan post-secondary graduate tax credit for four years. Any unused post-secondary graduate tax credit will be shown on your Notice of Assessment. Enter any unused amount from a previous year on line 59.

If you did not claim the credit last year, and a certificate had been issued for the year 2000, you have to request an adjustment to your 2000 tax return to claim that credit. See the section called "How do you change a return?" on page 10 of the General Income Tax and Benefit Guide.

Receipts - Attach to your paper return the tax credit certificate obtained from the Saskatchewan government. If you are filing electronically, keep it in case we ask to see it.

Line 62 - Mineral exploration tax credit

To encourage mineral exploration, Saskatchewan introduced the mineral exploration tax credit for individuals who purchase shares from a mining exploration corporation after October 17, 2000. The company's exploration expense must be in Saskatchewan.

The credit is 10% of the eligible expenses and it will be used first to reduce Saskatchewan tax in the year. Any unused amounts can be carried forward for 10 years or carried back for 3 years.

Enter, on line 62 on Form SK428, the total of the credits shown on Forms SK-METC, Mineral exploration tax credit certificate, you received from mining exploration corporations that incurred qualifying expenses in Saskatchewan

You can carry forward for ten years, or back three years, the mineral exploration tax credit that you cannot use in the current year to reduce your Saskatchewan tax to zero.

If your most recent Notice of Assessment or Notice of Reassessment indicates an unused mineral exploration tax credit from 2000, enter this amount on line 63.

If you cannot use all of your current year tax credit, use the chart for lines 62 to 64 on the Provincial Worksheet to calculate the unused amount available to carry back to previous years.

Enter, on line 68 on Form SK428, any part of this amount you want to carry back to reduce your 1998 Saskatchewan tax. Enter, on line 67, any amount you want to carry back to 1999, and on line 66, any amount you want to carry back to 2000.

If any unused amount is not carried back to a previous year on lines 66, 67 or 68, it will be shown on your 2001 Notice of Assessment or Notice of Reassessment.

Receipts - If you are filing a paper return, attach a copy of your Forms SK-METC. If you are filing electronically, keep them in case we ask to see them.

Date modified:

2002-07-25