Federal non-refundable tax credits for newcomers and emigrants
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Federal non-refundable tax credits for newcomers and emigrants
Part of the year that you were a resident of Canada
You can claim the following federal non‑refundable tax credits, as long as they apply to the part of 2016 that you were a resident of Canada:
- Canada Pension Plan or Quebec Pension Plan contributions;
- social security arrangement contributions (go to Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2016 – Non‑United States Plans or Arrangements);
- employment insurance premiums through employment;
- provincial parental insurance plan premiums;
- volunteer firefighters’ amount;
- search and rescue volunteers' amount;
- Canada employment amount;
- public transit amount;
- children’s arts amount;
- home accessibility expenses;
- home buyers’ amount;
- adoption expenses;
- pension income amount (for yourself);
- interest paid on loans for post‑secondary education made to you under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws;
- tuition, education, and textbook amounts (for yourself);
- medical expenses; and
- donations and gifts.
In addition, you can claim, as long as they apply to your situation, the other remaining federal non-refundable tax credits based on the number of days you were a resident of Canada in 2016.
Use the date of entry or departure you entered in the area “Information about your residence” on page 1 of your tax return to calculate the number of days you were a resident of Canada. For a list of the other remaining federal non-refundable tax credits, go to Federal non-refundable tax credits.
Example 1
Example of the calculation for the basic personal amount claimed on line 300 of Schedule 1, Federal Tax.
Shirley left Canada on January 26, 2016, to live in another country. She calculates her basic personal amount as follows:
(26 days in Canada ÷ 366 days in 2016) × $11,474 = $815.09
Shirley claims $815.09 on line 300 of her Schedule 1.
Example 2
Example of the calculation for the age amount claimed on line 301 of Schedule 1, Federal Tax.
Jennifer is 70 years old. She left Canada on September 30, 2016. Her net income between January 1 and September 30, 2016, was $30,000. She calculates her age amount as follows:
-
Prorate the maximum age amount of $7,125.
(274 days in Canada ÷ 366 days in 2016) × $7,125 = $5,334.02 (A)
-
Prorate the base income amount of $35,927
(274 days in Canada ÷ 366 days in 2016) × $35,927 = $26,896.17 (B)
Since Jennifer’s net income is greater than (B), she must reduce amount (A) by 15% of the amount of her income that is more than the prorated base income amount (B), as follows:
$30,000 − $26,896.17 = $3,103.83 (excess amount)
$3,103.83 × 15% = $465.57 (C)
The age amount that Jennifer can claim is (A) minus (C):
$5,334.02 − $465.57 = $4,868.45
Jennifer claims $4,868.45 on line 301 of her Schedule 1.
Example 3
Example of the calculation for the spouse or common‑law partner amount claimed on line 303 of Schedule 1, Federal Tax.
Suzanne and her spouse Richard arrived in Canada permanently on September 23, 2016. Suzanne’s net income between September 23 and December 31 was $100,000 and Richard’s was $800 in the same period. She calculates her spouse or common‑law partner amount as follows:
-
Prorate the maximum spouse or common‑law partner amount of $11,474.
(100 days in Canada ÷ 366 days in 2016) × $11,474 = $3,134.97
-
Subtract spouse’s or common-law partner’s net income.
$3,134.97 − $800.00 = $2,334.97
Suzanne claims $2,334.97 on line 303 of her Schedule 1.
Part of the year that you were not a resident of Canada
You can claim the following federal non-refundable tax credits, as long as they apply to the part of 2016 that you were not a resident of Canada, if you are reporting Canadian‑source income as listed in Part I tax under Non-residents of Canada:
- Canada Pension Plan or Quebec Pension Plan contributions;
- social security arrangement contributions (go to Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2016 – Non‑United States Plans or Arrangements);
- employment insurance premiums through employment;
- disability amount (for yourself);
- interest paid on loans for post‑secondary education made to you under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws;
- tuition fees (for yourself); and
- donations and gifts.
In addition, you can claim the remaining federal non-refundable tax credits in full if:
- the Canadian-source income you are reporting for the part of 2016 that you were not a resident of Canada represents 90% or more or your net world income for that part of the year; or
- you had no income from sources inside and outside Canada for that part of the year.
For a list of the other remaining federal non-refundable tax credits, go to Federal non-refundable tax credits.
Note
If you are claiming full federal non-refundable tax credits, attach a note to your return stating your net world income (in Canadian dollars) for the part of 2016 that you were not a resident of Canada.
Show separately the net income you received from sources inside and outside Canada for that part of the year. The Canada Revenue Agency cannot allow the full amount of these federal credits without this note.
The total amount you can claim for each federal non-refundable tax credit cannot be more than the amount you could have claimed if you were a resident of Canada for the whole year.
- Date modified:
- 2017-03-01