Archived

This page has been archived on the Web.

ARCHIVED - General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada - 2002

5013-G

Refund or Balance owing

Line 421 - CPP contributions
payable on self-employment and other earnings

Enter the Canada Pension Plan (CPP) contributions you have to pay from line 10 on Schedule 8.

If you have to complete a return for the Province of Quebec, this line does not apply to you. Enter on your Quebec provincial return the Quebec Pension Plan contributions you have to pay.

Line 422 - Social benefits
repayment

Enter the amount of social benefits you have to repay, from line 235 of your return.

Non-residents electing under section 217 - Enter only the amount of your Employment Insurance benefits repayment as calculated on the charts included with your information slip. Do not enter the amount of your Old Age Security pension or net federal supplements repayment.

Line 424 - Federal tax on
split income

Click here.

Line 425 - Federal dividend
tax credit

Click here.

Line 426 - Overseas employment
tax credit

Click here.

Line 427 - Minimum tax
carry-over

Click here.

Line 428 - Provincial or
territorial tax

Deemed residents - This line applies to you only if you had a business with a permanent establishment in a province or territory in Canada in 2002. If this is your situation, complete Form T2203, Provincial and Territorial Taxes for 2002 - Multiple Jurisdictions, to calculate your tax for provinces and territories other than Quebec. Attach a copy to your return.

Non-residents electing under section 217 - This line applies to you only if you had income from employment in Canada in 2002, or from a business with a permanent establishment in a province or territory in Canada in 2002. If this is your situation, complete Form T2203, Provincial and Territorial Taxes for 2002 - Multiple Jurisdictions, to calculate the provincial or territorial tax you have to pay (except for Quebec tax) on this income. Attach a copy of the form to your return.

Note
To calculate your tax for Quebec, you will have to file a Quebec provincial return.

Lines 431 and 433 - Federal
foreign tax credit

Click here.

Line 437 - Total income tax
deducted

Enter the total of the amounts shown in the "Income tax deducted" box from all of your Canadian information slips. However, if you are subject to Quebec tax, do not include on this return any of your Quebec provincial income tax deducted.

If you are not subject to Quebec tax, but you had Quebec provincial income tax withheld from your income, include those amounts on this line. Attach your provincial information slips to your return.

Notes
If you paid tax by instalments in 2002, claim them on line 476.

If you paid foreign taxes, do not claim these amounts on this line. However, you may be able to claim a foreign tax credit (see lines 431 and 433).

Deemed residents - If tax was withheld from your monthly OAS benefits (as shown in box 22 of your T4A(OAS) slip) make sure you claim it on this line.

Non-residents electing under section 217 - If you received Old Age Security benefits in 2002, include the amount of non-resident tax shown in box 17 of your NR4-OAS slip. Do not include the amount of recovery tax shown in box 27 of the slip.

Line 438 - Tax transfer for residents
of Quebec

If you have to file a return for the Province of Quebec, you may have earned income, such as employment income, outside Quebec during 2002. In that case, tax may have been deducted for a province or territory other than Quebec.

You can transfer, to the Province of Quebec, up to 40% of the income tax shown on information slips issued to you by payers outside Quebec.

Enter on line 438 of your federal return and on line 454 of your Quebec provincial return the amount you want to transfer (up to the maximum). If the taxable income on your provincial return is zero, no transfer is necessary.

Line 440 - Refundable Quebec
abatement

The Quebec abatement is provided under the federal-provincial fiscal arrangement, in place of direct cost-sharing by the federal government. It reduces your balance owing, and may even give you a refund.

If you have to file a return for the Province of Quebec and you did not have a business with a permanent establishment outside Quebec, your refundable Quebec abatement is 16.5% of the amount on line 13 of Schedule 1.

If you have to file a return for the Province of Quebec and you had a business with a permanent establishment outside Quebec, or you had a business with a permanent establishment in Quebec, use Form T2203, Provincial and Territorial Taxes for 2002 - Multiple Jurisdictions, to calculate your abatement.

Line 445 - Section 217 tax
adjustment

Click here.

Line 448 - CPP overpayment

If you do not have to file a return for the Province of Quebec, and you contributed more to the Canada Pension Plan (CPP) than you had to (see line 308) enter the difference on this line. We will refund the excess contributions to you, or use them to reduce your balance owing. If you do have to file a return for the Province of Quebec, this line does not apply to you. Claim the excess amount on your Quebec provincial return.

Line 450 - Employment Insurance
overpayment

If you contributed more than you had to (see line 312) enter the difference on line 450. We will refund the excess amount to you or use it to reduce your balance owing.

Note
If you repaid some of the Employment Insurance benefits you received, do not claim the repayment on this line. You may be able to claim a deduction on line 232 for the benefits you repaid.

Line 452 - Refundable medical
expense supplement

You may be able to claim a credit of up to $535 if all of the following apply:

• You have an amount on line 332 of Schedule 1.
• You were a deemed resident of Canada throughout 2002.
• You were 18 or older at the end of 2002.

In addition, the total of the following two amounts has to be $2,676 or more:

• your employment income on lines 101 and 104 (other than amounts received from a wage-loss replacement plan) minus the amounts on lines 207, 212, 229, and 231 (but if the result is negative, use "0"); and
• your net self-employment income (not including losses) from lines 135 to 143.

You cannot claim this credit if the total of your net income (line 236) 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 $30,996 or more. However, if you were separated because of a breakdown in your relationship for a period of 90 days or more that included December 31, 2002, you do not have to include your spouse or common-law partner's income when calculating this credit.

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

Complete the chart for line 452 on the Federal Worksheet in the centre of this guide to calculate your claim. You can claim both this credit and the amount for medical expenses on line 330 of Schedule 1 for the same expenses.

Line 454 - Refund of investment
tax credit

If you are eligible for an investment tax credit (line 412 on Schedule 1) based on expenditures made in 2002, you may be able to claim a refund of your unused investment tax credit. This refund will reduce the amount of credit available to you for other years.

Calculate the refundable part of your investment tax credit on Form T2038(IND), Investment Tax Credit (Individuals). Attach a completed copy of the form to your return.

Line 456 - Part XII.2 trust tax credit

Enter the total of amounts shown in box 38 of all your T3 slips.

Line 457 - Employee and partner
GST/HST rebate

If you deducted expenses from your income as an employee (line 212 or 229) or as a partner (lines 135 to 143) you may be eligible for a rebate of the GST/HST you paid on those expenses. Generally, you can claim this rebate if either of the following applies:

• your employer is registered for the GST/HST; or
• you are a member of a GST/HST-registered partnership, and you have reported on your return your share of the income from that partnership.

To claim this rebate, if you incurred the expenses as an employee, use the Employment Expenses guide. If you incurred the expenses as a member of a partnership, use the GST/HST Rebate for Partners guide. These guides list the expenses that qualify. They also include Form GST370, Employee and Partner GST/HST Rebate Application, which you need to make your claim. Attach a completed copy of this form to your return, and enter on line 457 the rebate you are claiming.

Notes
Generally, you have to include in income any rebate you receive, on the return for the year in which you receive it. For example, you may claim a rebate on your return for 2002. If we allow your claim, and assess that return in 2003, you have to report the rebate on your return for 2003.

You may have received a GST/HST rebate in 2002. If you did, and you were an employee, see line 104. If you are a partner, contact the International Tax Services Office.

Line 476 - Tax paid by
instalments

Enter the total instalment payments you made for your taxes for 2002. In February of 2003, we will issue you either Form INNS1, Instalment Reminder, or Form INNS2, Instalment Payment Summary, that shows your total instalment payments for 2002 that we have on record. If you made an instalment payment for your taxes for 2002 that does not appear on this reminder or summary, also include that amount on line 476.

Note
If tax was withheld from your income, claim on line 437 the amounts shown on your information slips.

Non-residents and non-residents electing under section 217 - If you disposed of taxable Canadian property in 2002, enter the tax payment you made to us, as shown on your certificate of compliance (Form T2064,
Certificate - Proposed Disposition of Property by a Non-Resident of Canada or Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada). Attach copy 2 of your certificate of compliance to your return.

Line 484 - Refund

If your total payable (line 435) is less than your total credits (line 482) enter the difference on line 484. This amount is your refund. If the difference is less than $2, you will not receive a refund.

Note
One person's refund cannot be transferred to pay another person's balance owing.

Although you may be entitled to a refund for 2002, we may keep some or all of it to:

• apply against any amount you owe us or are about to owe us;
• apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, Immigration loans, and training allowance overpayments; or
• satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act.

If you pay your taxes by instalments you can attach a note to your return to ask us to transfer your refund to your instalment account for 2003.

Direct deposit

You can have your income tax refund, as well as your GST/HST credit and Canada Child Tax Benefit (CCTB) payments deposited directly into your account at a financial institution.

To start direct deposit, or to change information you already gave us, complete the "Direct deposit - Start or change" section on page 4 of your return. You do not have to complete this area if you already have direct deposit service and the information you already gave us has not changed. Your direct deposit request will stay in effect until you change the information or cancel the service.

If you want your CCTB payments deposited into a different account, you will have to send us, either with your return or separately, a completed Form T1-DD(1), Direct Deposit Request - Individuals.

If you are changing the account into which we deposit a payment, do not close the old account before we deposit the payment into the new account. If your financial institution advises us that you have a new account, we may deposit your payments into the new account. If we cannot deposit a payment into your account, we will mail a cheque to you at the address we have on file.

If you need help to complete the direct deposit information, or to cancel the service for one or more of these payments, contact the International Tax Services Office.

Line 485 - Balance owing

If your total payable (line 435) is more than your total credits (line 482) enter the difference on line 485. This amount is your balance owing. Your balance is due no later than April 30, 2003. If the difference is less than $2, you do not have to make a payment.

If you or your representative has a bank account at a financial institution in Canada through which you can make a payment, you or your representative can make your payment in several different ways:

• You may be able to pay using one of your financial institution's electronic services (telephone, Internet, or automated banking machine). To find out, visit our Web page at www.ccra.gc.ca/electronicpayments or ask your financial institution.
• You can make your payment free of charge at your financial institution in Canada. To do so, you have to use the remittance form in your personalized tax package (if you received one) or Form T7DR(A) which you can get from the International Tax Services Office.
• You can attach to the front of your return a cheque or money order made out to the Receiver General, but only if you are filing that return. Enter this amount on line 486.
• You can send us a cheque or money order with the remittance form in your personalized tax package (if you received one) or Form T7DR(A) which you can get from the International Tax Services Office. Mail the form and your cheque or money order to: Canada Customs and Revenue Agency, P.O. Box 9659, Station T, Ottawa ON K1G 6L7.

If you or your representative does not have a bank account at a financial institution in Canada, you or your representative can make your payment using:

• an international money order drawn in Canadian dollars;
• a bank draft in Canadian funds drawn on a Canadian bank (available at most foreign financial institutions); or
• a cheque drawn in the currency of the country in which the financial institution is located. We will use the currency rate in effect at the time we cash your cheque.

We cannot immediately negotiate a cheque drawn in Canadian funds on a financial institution outside Canada, as it may take several weeks to collect the funds from the foreign financial institution. Therefore, you should remit your payment early to avoid or reduce any interest charges. Once we receive the funds from the foreign financial institution, we will update the account accordingly. Please note that due to the limits set by the banking community, we cannot accept cheques drawn in Canadian funds on a financial institution outside Canada for less than $400 Canadian.

Notes
If you pay by cheque or money order, write your social insurance number or temporary taxation number on the back to make sure we credit the payment properly.

Do not mail us cash or include it with your return.

You can file your return early and attach to it a payment post-dated for as late as April 30. In that case, if we process your return before the date of the payment, your payment will appear on your Notice of Assessment, but it will not reduce your balance owing. We will credit your account on the date of the payment and then send you a revised statement of your account.

If you make a payment with a cheque that your financial institution does not honour (including a cheque on which you put a "stop payment") we will charge you a fee. Generally, this fee is $15 for each returned cheque.

Making a payment arrangement - If you cannot pay your balance owing on or before April 30, 2003, you can make a mutually acceptable payment arrangement by contacting your tax services office. If you do not know your tax services office, call the International Tax Services Office. We will still charge daily compound interest on any outstanding balance starting May 1, 2003, until you pay it in full.

Tax Tip
Even if you cannot pay all of your balance owing right away, you should still file your return on time. Then you will not have to pay a penalty for filing your return after the due date. See "What penalties and interest do we charge?" for details.

Date modified:

2002-12-12