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ARCHIVED - General Income Tax and Benefit Guide - 2002

5000-G

Federal non-refundable tax credits

These credits reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference.
If, after you have read the information in this guide, you need more details about claiming the amounts on lines 300 to 306, get Interpretation Bulletin IT-513, Personal Tax Credits .

Newcomers to Canada and emigrants

If you immigrated to or emigrated from Canada in 2002, make sure you enter the date of your move in the "Information about your residence" area on page 1 of your return. You may have to reduce your claim for the amounts on lines 300 to 306, 315 to 318, 324, and 326. For more details, get either the Newcomers to Canada pamphlet or the Emigrants and Income Tax pamphlet, whichever applies.

Amounts for non-resident dependants (lines 303 and 306)

You may be able to claim an amount for certain dependants who live outside Canada, if they depended on you for support. You may be able to make this claim for your spouse or common-law partner (line 303) and for your or your spouse or common-law partner's children and grandchildren who were born in 1984 or earlier and who were mentally or physically infirm (line 306). You cannot claim an amount for any other relatives who lived outside Canada for all of 2002.

If the above dependants already have enough income or assistance for a reasonable standard of living in the country in which they live, we do not consider them to depend on you for support. Also, we do not consider gifts you send them to be support.

If you are filing a paper return, include proof of your support payments. If you are filing electronically (see filing electronically) keep these documents in case we ask to see them. The proof of payment has to show your name, the amount, the date of the payment, and the dependant's name and address. If you sent the funds to a guardian, the guardian's name and address also have to appear on the proof of payment.

Line 300 - Basic personal amount

Claim $7,634.

Line 301 - Age amount

If you were 65 or older on December 31, 2002, and your net income (line 236 of your return) was:

• $27,749 or less, enter $3,728 on line 301;
• more than $27,749, but less than $52,602, complete the chart for line 301 on the Federal Worksheet in the forms book to calculate your claim; or
• $52,602 or more, you cannot claim the age amount.

Make sure you enter your date of birth in the "Information about you" area on page 1 of your return.

Tax Tip
You may be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount. See line 326 for details.

Line 303 - Spouse or common-law partner amount

If, at any time in the year, you supported your spouse or common-law partner and his or her net income (see below) was:

• $649 or less, claim $6,482 on line 303;
• more than $649, but less than $7,131, calculate your claim at line 303; or
• $7,131 or more, you cannot claim a spouse or common-law partner amount.

Make sure you enter your marital status and the information concerning your spouse or common-law partner in the Identification area on page 1 of your return. Both of you cannot claim this amount for each other for the same year.

If you were required to make support payments to your current or former spouse or common-law partner, and you were separated for only part of 2002 because of a breakdown in your relationship, you have a choice. You can claim, for your spouse or common-law partner, either the deductible support amounts paid for the year or an amount on line 303, whichever is better for you. If you reconciled before the end of 2002, and you choose to claim an amount on line 303, you also can claim any allowable amounts on line 326.

Net income of spouse or common-law partner

This is the amount on line 236 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return.

If you were living with your spouse or common-law partner on December 31, 2002, use his or her net income for the whole year. This applies even if you got married in 2002, or if you separated and got back together in 2002. If you separated in 2002 because of a breakdown in your relationship, and were not back together on December 31, 2002, reduce your claim only by your spouse or common-law partner's net income before the separation. In either case, enter, in the "Information about your spouse or common-law partner" area on page 1 of your return, the amount you use to calculate your claim, even if it is zero.

Tax Tip
If you cannot claim the amount on line 303 (or you have to reduce your claim) because of dividends your spouse or common-law partner received from taxable Canadian corporations, you may be able to reduce your tax if you report all of your spouse or common-law partner's dividends. See line 120 for details.

Line 305 - Amount for an eligible dependant

You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

• you did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person;
• you supported a dependant; and
• you lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant also must have been either:

• your parent or grandparent, by blood, marriage, common-law partnership, or adoption (legal or in fact); or
• your child, grandchild, brother, or sister, by blood, marriage, common-law partnership, or adoption (legal or in fact) and either under 18, or mentally or physically infirm.

Notes
Your dependant may live away from home while attending school. If the dependant ordinarily lived with you when not in school, we consider that dependant to live with you for the purposes of this credit.

For the purposes of this claim, your child is not required to have lived in Canada, but still must have lived with you. This would be possible, for example, if you were a deemed resident
(see deemed resident for a definition) living in another country with your child.

Even if all of the preceding conditions have been met, you cannot claim this amount if any of the following applies:

• You are claiming a spouse or common-law partner amount
  (line 303).
• The person for whom you want to claim this amount is your common-law partner. However, you may be able to claim the amount on line 303.
• Someone else in your household is making this claim. Each household is allowed only one claim for this amount, even if there is more than one dependant in the household.
• The claim is for a child for whom you were required to make support payments. However, if you were separated from your spouse or common-law partner for only part of 2002 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either an amount on line 305 (plus any allowable amounts on lines 306, 315, and 318) or the support amounts paid for the year (if they are deductible) whichever is better for you.

How to claim

If 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) was:

• $649 or less, claim $6,482 on line 305;
• more than $649, but less than $7,131, complete the chart for line 305 on the Federal Worksheet in the forms book to calculate your claim; or
• $7,131 or more, you cannot claim this amount.

Complete the appropriate part of Schedule 5 and attach it to your paper return.

Notes
You cannot split this amount with another person. Once you claim this amount for a dependant, no one else can claim this amount or an amount on line 306 for that dependant.

If you and another person both can claim this amount for the same dependant (such as shared custody of a child) but cannot agree who will claim the amount, neither of you is allowed to claim it.

Tax Tip
If the dependant is infirm, see the Information Concerning People With Disabilities guide for details about different amounts you may be able to claim.

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount for your or your spouse or common-law partner's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1984 or earlier.

You also can claim an amount for a person who meets all of the following conditions. The person must have been:

• your or your spouse or common-law partner's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• born in 1984 or earlier;
• mentally or physically infirm;
• dependent on you, or on you and others for support; and
• living in Canada at any time in the year. You cannot claim this amount for a person who was only visiting you.

Notes
A parent includes someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age.

A child can include someone older than you who has become dependent on you.

If, for a particular dependant, anyone other than you is claiming an amount on line 305, or anyone (including you) can claim an amount on line 315, you cannot claim an amount on line 306 for that dependant. If you are claiming an amount on line 305 for a dependant who is infirm and age 18 or older, you also may be able to claim an amount on line 306 for that dependant.

You can claim an amount only if the 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 $8,720.

If you were required to make support payments for that child, you cannot claim an amount on line 306 for that child. However, if you were separated from your spouse or common-law partner for only part of 2002 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either an amount on line 306 (plus any allowable amounts on lines 305 and 318) or the support amounts paid for the year (if they are deductible) whichever is better for you.

How to claim

• For each of your dependants, calculate his or her net income (line 236 of his or her return, or the amount that it would be if he or she filed a return). Complete the chart for line 306 on the
  Federal Worksheet in the forms book to calculate your claim.
• Complete the appropriate part of Schedule 5 and attach it to your paper return. You also should have a signed statement from a medical doctor that gives the nature, commencement, and duration of the dependant's infirmity. Keep the statement in case we ask to see it.

Claims made by more than one person - If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot be more than the maximum amount allowed for that dependant.

Tax Tip
See the Information Concerning People With Disabilities guide for details about different amounts you may be able to claim.

Line 308 - CPP or QPP contributions through employment

Claim, in dollars and cents, the total of the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions shown in boxes 16 and 17 of your T4 slips. Do not enter more than $1,673.20.

If you contributed to the QPP in 2002 but lived outside Quebec on December 31, 2002, treat those contributions as if you made them to the CPP. Attach to your paper return the RL-1 slip your employer sent you.

If you contributed more than $1,673.20, enter the excess amount on line 448 of your return. We will refund this overpayment to you, or use it to reduce your balance owing. However, if you lived in Quebec on December 31, 2002, and contributed more than $1,673.20, claim the overpayment on your Quebec provincial return.

You may have an overpayment, even if you contributed $1,673.20 or less. For example:

• In 2002, you may have been a CPP participant and either turned 18 or 70, or received a CPP retirement or disability pension.
• In 2002, you may have been a QPP participant and either turned 18 or received a QPP disability pension.
• From all your T4 slips for 2002, the total of amounts in box 14 may be more than the total of amounts in box 26. If box 26 of one of the slips is blank, use the amount in box 14.

You can calculate your overpayment, if any, using Form T2204, Employee Overpayment of 2002 Canada Pension Plan Contributions and 2002 Employment Insurance Premiums .

You may be able to make CPP contributions on certain employment income for which no contributions (or less than the maximum) were made. For more information, see "Making additional CPP contributions".

Tax-exempt employment income earned by a registered Indian - If you are a registered Indian with tax-exempt employment income, and there is no amount in box 16 of your T4 slip, you may be able to contribute to the CPP on this income. See "Making additional CPP contributions" for details.

Line 310 - CPP or QPP contributions on self-employment and other earnings

Claim, in dollars and cents, the same amount you claimed on line 222 of your return.

Line 312 - Employment Insurance premiums

Claim, in dollars and cents, the total of the amounts shown in box 18 of all your T4 and T4F slips. Do not enter more than $858.00.

If you contributed more than $858.00, enter the excess amount on line 450 of your return. We will refund this overpayment to you, or use it to reduce your balance owing.

Insurable earnings

This is the total of all earnings upon which you pay Employment Insurance premiums. These amounts are shown in box 24 of your T4 slips and box 16 of your T4F slips for 2002 (or box 14 if either of these boxes is blank).

You may have an overpayment of your premiums even if the total is $858.00 or less. This can happen when your insurable earnings are less than the total of all amounts in box 14 of all your T4 and T4F slips.
You can calculate your overpayment, if any, using Form T2204, Employee Overpayment of 2002 Canada Pension Plan Contributions and 2002 Employment Insurance Premiums .

If your insurable earnings are $2,000 or less, we will refund all of your premiums to you or use them to reduce your balance owing. In this case, do not enter any premiums on this line. Instead, enter the total on line 450.

You also may have an overpayment if your insurable earnings are more than $2,000 and less than $2,045. You can calculate your overpayment, if any, using Form T2204.

Line 314 - Pension income amount

You may be able to claim up to $1,000 if you reported pension or annuity income on line 115 or line 129 of your return. Therefore, make sure you have reported your pension or annuity income correctly. Complete the chart for line 314 on the Federal Worksheet in the forms book to calculate your claim.

Note
Only pension or annuity income you report on line 115 or 129 qualifies for the pension income amount. Therefore, amounts such as Old Age Security benefits, Canada Pension Plan benefits, Quebec Pension Plan benefits, Saskatchewan Pension Plan payments, death benefits, retiring allowances, and amounts in boxes 18, 20, 22, 26, 28, and 34 of your T4RSP slip do not qualify.

Tax Tip
You may be able to transfer all or part of your pension income amount to your spouse or common-law partner or to claim all or part of his or her pension income amount. See line 326 for details.

Line 315 - Caregiver amount

If, at any time in 2002, you (either alone or with another person) maintained a dwelling where you and a dependant lived, you may be able to claim this amount. The dependant must have been one of the following individuals:

• your child or grandchild; or
• your or your spouse or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.

In addition, the dependant must have met all of the following conditions. The person must have:

• been 18 or over at the time he or she lived with you;
• had a net income (line 236 of his or her return, or what line 236 would be if he or she filed a return) of less than $15,917; and
• been dependent on you due to mental or physical infirmity or, if he or she is your or your spouse or common-law partner's parent or grandparent, born in 1937 or earlier.

If you were required to make support payments for a child, you cannot claim an amount on line 315 for that child. However, if you were separated from your spouse or common-law partner for only part of 2002 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either the amount on line 315 (plus any allowable amounts on lines 305 and 318) or the support amounts paid for the year (if they are deductible) whichever is better for you.

Complete the chart for line 315 on the Federal Worksheet in the forms book to calculate your claim. Complete the appropriate part of Schedule 5 and attach it to your paper return.

Claims made by more than one person - If you and another person support the same dependant, you can split the claim for that dependant. However, the total of your claim and the other person's claim cannot be more than the maximum amount allowed for that dependant.

If anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 306 for that dependant. If anyone other than you claims an amount on line 305 for a dependant, you cannot claim an amount on line 315 for that dependant. See the Information Concerning People With Disabilities guide for details about different amounts you may be able to claim.

Line 316 - Disability amount

You can claim this amount if a qualified person certifies both of the following:

• You had a severe mental or physical impairment in 2002 that caused you to be markedly restricted in any of the basic activities of daily living.
• Your impairment was prolonged, which means it has lasted, or is expected to last, for a continuous period of at least 12 months.

You are markedly restricted in a basic activity of daily living if, all or almost all of the time, you are unable to do the following, even with therapy (other than life-sustaining therapy, see Life-sustaining therapy) and the use of appropriate devices and medication:

• see, as certified by a medical doctor or an optometrist;
• walk, as certified by a medical doctor or an occupational therapist;
• speak, as certified by a medical doctor or a speech-language pathologist;
• perceive, think, and remember, as certified by a medical doctor or a psychologist;
• hear, as certified by a medical doctor or an audiologist;
• feed or dress yourself, as certified by a medical doctor or an occupational therapist; or
• eliminate bodily wastes, as certified by a medical doctor.

You also can be considered to be markedly restricted if it takes you an extremely long time to do any of the above.

Notes
We can consider only these basic activities of daily living to see if you qualify for this amount.

If you receive a disability benefit (such as CPP or QPP disability benefits) it does not necessarily mean that you are eligible to claim this amount.

Life-sustaining therapy - You may receive life-sustaining therapy to support a vital function, such as clapping therapy to help in breathing or kidney dialysis to filter your blood. You may qualify for this amount if a medical doctor certifies that you need this therapy at least three times per week, and that you have to spend an average of at least 14 hours per week receiving it. This therapy does not include implanted devices, such as a pacemaker, or special programs of diet, exercise, hygiene, or medication.

Supplement for persons under 18

If you qualify for the disability amount and you were under 18 at the end of the year, you can claim up to an additional $3,605. However, child care expenses (line 214) and attendant care expenses (on line 215 or as a medical expense on line 330) anyone claimed for you for 2002 may reduce this claim.

How to claim

• If this is a new application for this amount, you have to submit a completed (including Part A) and certified Form T2201, Disability Tax Credit Certificate , or your claim will be delayed. We will review your claim before we assess your return to determine if you qualify.
• If you qualified for this amount for 2001 and you still met the eligibility requirements in 2002, you can claim this amount without sending us a new Form T2201. However, you have to send us one if your previous period of approval ended before 2002 or we ask you to do so.
• If you were 18 or over at the end of the year, claim $6,180. Otherwise, complete the chart for line 316 on the
  Federal Worksheet in the forms book to calculate your claim.

For more information, including details about different amounts you may be able to claim, get the Information Concerning People With Disabilities guide. That guide also contains Form T2201. We will accept a photocopy of your Form T2201 only if the signature of the person authorized to certify the impairment is an original, not a photocopy.

Line 318 - Disability amount transferred from a dependant

You may be able to claim all or part of your dependant's disability amount (line 316) if he or she lived in Canada at any time in 2002 and was dependent on you because of his or her mental or physical impairment. In addition, one of the following situations has to apply:

• You claimed an amount on line 305 for that dependant, or you could have if you did not have a spouse or common-law partner and if the dependant did not have any income.
• The dependant was your or your spouse or common-law partner's parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew, and you claimed an amount on line 306 or 315 for that dependant, or you could have if he or she had no income and had been 18 years of age or older in 2002.

If you are required to make support payments for your child, you cannot claim a transfer of that child's disability amount. However, if you were separated from your spouse or common-law partner for only part of 2002 due to a breakdown in your relationship, you have a choice. You can claim, for that child, either an amount on line 318 (plus any allowable amounts on lines 305, 306, and 315) or the support amounts paid for the year (if they are deductible) whichever is better for you.

Notes
You cannot claim this credit if the spouse or common-law partner of the person with a disability is already claiming the disability amount or any other non-refundable tax credit
(other than medical expenses) for the person with a disability.

If you are splitting this claim with another individual, attach a note to your paper return including the name and social insurance number of the other individual who is making this claim. The total claimed for that dependant cannot be more than the maximum amount allowed for that dependant.

How to claim

• If this is a new application for the disability amount, you have to submit a completed and certified Form T2201, Disability Tax Credit Certificate . We will review your claim before we assess your return to determine if your dependant qualifies.
• If your dependant qualified for the disability amount for 2001 and still met the eligibility requirements in 2002, you can claim this amount without sending us a new Form T2201. However, you have to send us one if the previous period of approval ended before 2002 or we ask you to do so. If you are not attaching a Form T2201 for a dependant, attach to your paper return a note stating the dependant's name, social insurance number, and relationship to you.
• If your dependant was under 18 at the end of the year, first complete the chart for line 316 on the Federal Worksheet in the forms book to calculate the supplement that dependant may be able to claim.
• Complete the chart for line 318 on the Federal Worksheet in the forms book to calculate your claim for each dependant.

Tax Tip
If you can claim this amount, you also may be able to claim an amount on line 315 for the same dependant. See the Information Concerning People With Disabilities guide for details about different amounts you may be able to claim.

Line 319 - Interest paid on your student loans

A loan may have been made to you under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws for post-secondary education. If so, you can claim an amount for most of the interest you, or a person related to you, paid on that loan after 1997.

You can claim an amount only for interest you have not previously claimed. If you do not wish to claim these amounts on the return for the year they are paid, you can carry them forward and apply them on your return for any of the next five years.

Note
You cannot claim interest paid on any other kind of loan, or on a student loan that has been combined with another kind of loan. In addition, you cannot claim interest paid in respect of a judgment obtained after you failed to pay back a student loan.

Receipts - If you are filing a paper return, include receipts for the amounts you claim. If you are filing electronically (see filing electronically) keep them in case we ask to see them.

Line 323 - Tuition and education amounts

Claim your eligible tuition and education amounts for 2002, and any unused amounts carried forward from previous years that are shown on your Notice of Assessment or Notice of Reassessment for 2001. See "Transferring and carrying forward amounts" for more information. For more details, get the Students and Income Tax pamphlet.

Receipts - If you are filing a paper return, include a completed Schedule 11, but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically (see filing electronically) keep all of your documents.

Eligible tuition fees

Generally, a course qualifies if it was taken at the post-secondary level or (for individuals aged 16 or over at the end of the year) the educational institution has been certified by Human Resources Development Canada. In addition, you must have taken the course in 2002.

Not all fees can be claimed. More than $100 for the year must have been paid to each educational institution whose fees you claim. In addition, you cannot claim other expenses, such as books, board and lodging, or students' association fees. The fees must not have been paid by your or one of your parents' employer (or, if they were, the payment must have been included in your or your parent's income).

Forms

• For you to claim tuition fees paid to an educational institution in Canada, your institution has to give you either an official tax receipt or a completed Form T2202A, Tuition and Education Amounts Certificate .
• For you to claim tuition fees paid to an educational institution outside Canada, your institution has to complete and give you either Form TL11A, Tuition Fees Certificate - University Outside Canada , or Form TL11C, Tuition Fees Certificate - Commuter to the United States , whichever applies.
• For you to claim tuition fees paid to a flying school or club in Canada, your school or club has to give you a completed Form TL11B, Tuition Fees Certificate - Flying School or Club .

You can get these forms from us. You also can get Form TL11B from your flying school or club.

Education amount

You can claim this amount for each whole or part month in 2002 in which you were enrolled in a qualifying program. If you were under 16 at the end of the year, you can claim this amount only for courses you took at the post-secondary level.

Generally, you cannot claim this amount for a program for which you received a reimbursement, benefit, grant, or allowance, or for a program related to your job if you received a salary or wages while studying. These amounts do not include others, such as scholarships and student loans.

However, you now can claim this amount even if you received and included in your income any financial assistance provided under either:

• Part II of the Employment Insurance Act (and shown in box 20 of your T4E slip) or a labour-market development agreement as part of a similar provincial or territorial program; or
• a program developed under the authority of the Department of Human Resources Development Act.

Your educational institution has to complete and give you either Form T2202, Education Amount Certificate , or Form T2202A, Tuition and Education Amounts Certificate , to confirm the period in which you were enrolled in a qualifying program. The following amounts apply for each month in which you were enrolled:

• If you were enrolled full time, you can claim $400 per month.
• If you attended only part time, and you can claim an amount on line 316, you can claim $400 per month.
• If you could attend only part time because you had an impairment that restricted you in one of the activities listed at line 316, but your condition was not severe and prolonged, you can claim $400 per month. In that case, have an authorized person either complete Part 3 of Form T2202 or give you a signed letter certifying your impairment.
• If you were enrolled part time, you can claim $120 per month.

You cannot claim more than one education amount for a particular month.

Transferring and carrying forward amounts

You have to claim your tuition and education amounts first on your own return, even if someone else paid your fees. However, you may be able to transfer the unused part of these amounts to your spouse or common-law partner (who would claim it on line 326) or to your or your spouse or common-law partner's parent or grandparent (who would claim it on line 324).

Complete Schedule 11 (particularly line 327) to calculate this transfer, as well as the back of Form T2202 or T2202A to designate it.

You can carry forward and claim in a future year the part of your tuition and education amounts you cannot use (and do not transfer) for the year. However, if you carry forward an amount, you will not be able to transfer it to anyone. You have to claim your carry-forward amount in the earliest year possible. Calculate this amount on Schedule 11.

Line 324 - Tuition and education amounts transferred from a child

You may be the parent or grandparent of a student or his or her spouse or common-law partner. If so, the student may be able to transfer to you all or part of his or her tuition and education amounts for 2002. The maximum amount that the student can transfer is $5,000 minus the amounts that he or she uses, even if there is still an unclaimed part.

Note
The student cannot transfer to you any tuition and education amounts carried forward from a previous year.

How to claim

The student has to complete Schedule 11 (particularly line 327) to calculate the transfer amount, and the back of Form T2202, Education Amount Certificate , or Form T2202A, Tuition and Education Amounts Certificate , to designate you as the person who can claim it. If the tuition fees being transferred to you are not shown on the student's Form T2202A, you should have a copy of the student's official tuition fees receipt.

Amounts claimed by student's spouse or common-law partner - If a student's spouse or common-law partner claims an amount on line 303 or 326 for the student, you cannot claim an amount on line 324 for that student. However, the student's spouse or common-law partner can include the transfer on line 326.

No amounts claimed by student's spouse or common-law partner - If the student's spouse or common-law partner does not claim an amount on line 303 or 326 for the student, or if the student does not have a spouse or common-law partner, the student can choose which parent or grandparent will claim an amount on line 324. Only one person can claim this transfer from the student. However, it does not have to be the same parent or grandparent that claims an amount on line 305 or 306 for the student.

Receipts - If you are filing a paper return, do not include the student's Schedule 11, forms, or official tuition fees receipts, but keep them in case we ask to see them. If you are filing electronically
(see filing electronically) keep all of your documents.

Line 326 - Amounts transferred from your spouse or common-law partner

You may be able to claim all or part of the following amounts for which your spouse or common-law partner qualifies:

• the age amount (line 301) if your spouse or common-law partner was 65 or older;
• the pension income amount (line 314);
• the disability amount (line 316); and
• tuition and education amounts (line 323) for 2002 that your spouse or common-law partner designates. The maximum amount that the student can transfer is $5,000 minus the amounts that he or she uses, even if there is still an unused part.

Note
Your spouse or common-law partner cannot transfer to you any tuition or education amounts carried forward from a previous year. In addition, he or she cannot transfer any unused amounts to you if you were separated because of a breakdown in your relationship for a period of 90 days or more that included December 31, 2002.

Complete Schedule 2 to calculate your claim. Make sure you 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.

Receipts - If you are filing a paper return, include the completed
Schedule 2. If your spouse or common-law partner is not filing a return, also attach the information slips that show his or her income.

If the amount on this line includes a new application for the disability amount, also attach a completed and certified Form T2201, Disability Tax Credit Certificate . We will review your claim before we assess your return to determine if your spouse or common-law partner qualifies. If he or she qualified for the disability amount for 2001 and still met the eligibility requirements in 2002, you can claim this amount without sending us a new Form T2201. However, you have to send us one if the previous period of approval ended before 2002 or we ask you to do so.

Do not include any receipts or forms (other than your own Schedule 2) for your spouse or common-law partner's tuition or education amounts, but keep them in case we ask to see them.

If you are filing electronically (see filing electronically) keep all of your documents.

Line 330 - Medical expenses

You can claim medical expenses you or your spouse or common-law partner paid for any of the following persons:

• yourself;
• your spouse or common-law partner;
• your or your spouse or common-law partner's child or grandchild who depended on you for support; and
• your or your spouse or common-law partner's parent, grandparent, brother, sister, uncle, aunt, niece, or nephew who lived in Canada at any time in the year and depended on you for support.

You can claim medical expenses paid in any 12-month period ending in 2002 and not claimed for 2001. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than either 3% of your net income (line 236) or $1,728, whichever is less.

On the return for a person who died in 2002, a claim can be made for expenses paid in any 24-month period that includes the date of death, if they were not claimed for any other year.

Under proposed changes, if you are claiming expenses paid for a person who died in the year, these amounts can be claimed for any 24-month period that includes the date of death. This change is effective for 2001 and later years. If this affects how you would have filed your return for 2001, you can ask us to change it. See "How do you change a return?".

Note
If you claim medical expenses for a dependant (other than your spouse or common-law partner) whose net income is more than $7,634, you have to reduce your claim. See line 331 for details.

Tax tip
There is a refundable tax credit for working individuals with low incomes and high medical expenses (see line 452).

For more information on medical expenses, get Interpretation Bulletin IT-519, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction .

Allowable medical expenses

The most common medical expenses you can claim are:

• payments to a medical doctor, dentist, nurse, or certain other medical professionals, or to a public or licensed private hospital;
• premiums paid to private health services plans (other than those paid by an employer, such as the amount in box J of your Quebec Relevé 1 slip);
• premiums paid under the Quebec Prescription Drug Insurance Plan, but not under a provincial or territorial government medical or hospitalization plan;
• payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, prescription drugs, and certain prescription medical devices;
• expenses relating to guide and hearing-ear dogs; and
• amounts paid for attendant care or care in an establishment. However, claiming these expenses may prevent any claim for the disability amount for the person receiving the care. For details, see the Information Concerning People With Disabilities guide.

For more examples of allowable medical expenses, use Info-Tax, one of our T.I.P.S. services (see T.I.P.S. (Tax Information Phone Service) and T.I.P.S. Online).

Travel expenses - If medical treatment is not available locally, you may be able to claim the cost of travelling to get the treatment somewhere else. You can choose to simplify the way you calculate this amount. For more information, use Info-Tax, one of our T.I.P.S. services (see T.I.P.S. (Tax Information Phone Service) and T.I.P.S. Online).

Reimbursement of an allowable expense - You cannot claim the part of an expense for which you have been or can be reimbursed. However, you can claim all of the expense if the reimbursement is included in your income, such as a benefit shown on a T4 slip, and you did not deduct the reimbursement anywhere else on your return.

Example
Guy was in the hospital while on a business trip to Mexico. He paid $2,800 in Canadian dollars for allowable medical expenses, which are generally not limited to those paid in Canada. He was reimbursed for $1,500 of these expenses by his employer's health care plan. This was included on his T4 slip. Therefore, Guy can claim the full $2,800.

How to claim

Make your claim as follows:

• Choose the 12-month period ending in 2002 for which you will claim medical expenses, and add up your expenses for that period. You cannot include any expenses you deducted on your 2001 return.
• Calculate your claim on line 332.

Tax Tip
Compare the result with the amount your spouse or common-law partner would be allowed. It may be better for the one of you with the lower income to claim the allowable medical expenses. You can make whichever claim you prefer.

The following example shows how to calculate your claim.

Receipts - If you are filing a paper return, include your receipts
(other than for premiums paid to a health services plan, which you should keep in case we ask to see them) and other documents. Receipts must show the name of the company or individual to whom the expense was paid. Receipts for attendant care or therapy paid to an individual also should show the individual's social insurance number.

You may be claiming expenses that would be allowable only for a patient who qualified for the disability amount (line 316). In that case, if we do not have a valid Form T2201, Disability Tax Credit Certificate , for that person, you also have to attach a properly completed and certified copy of that application. We will review your claim before we assess your return to determine if the person for whom you are claiming medical expenses qualifies. If he or she qualified for the disability amount for 2001 and still met the eligibility requirements in 2002, you can claim this amount without sending us a new Form T2201. However, you have to send us one if the previous period of approval ended before 2002 or we ask you to do so.

If you are filing electronically (see filing electronically) keep all of your documents in case we ask to see them.

Line 331 - Medical expenses adjustment

You may have claimed medical expenses for a dependant, other than your spouse or common-law partner, whose net income was more than $7,634. In that case, you have to reduce your medical expenses by making the following adjustment:

• Subtract $7,634 from the 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.
• Multiply the result by 4.25.
• Complete this calculation for each such dependant.
• Enter on line 331 the total of the amounts you calculated.

Tax Tip
If the medical expenses adjustment you calculate for a dependant is more than the medical expenses you claimed for that dependant, it is not to your benefit to claim the medical expenses for that dependant.

Line 349 - Donations and gifts

You can claim donations either you or your spouse or common-law partner made. Enter your claim from the calculation on Schedule 9. For more information about donations and gifts, or if you donated any of the following, see the Gifts and Income Tax pamphlet:

• gifts of property other than cash;
• gifts to organizations outside Canada; or
• gifts to Canada, a province, or a territory made before February 19, 1997, or agreed to in writing before then if they were made after February 18, 1997.

Notes
These gifts do not include contributions to political parties. If you contributed to a federal political party, see lines 409 and 410 to find out about claiming a credit. If you contributed to a provincial or territorial political party, see the provincial or territorial forms in the forms book to find out about claiming a credit.

Gifts to Canada include monetary gifts made directly to the federal Debt Servicing and Reduction Account. If you made such a gift, which will be used only to service the public debt, you should have received a tax receipt. To make a gift to this account, which should be made payable to the Receiver General, send it, along with a note asking that we apply it to this account, to:

Place du Portage, Phase III,
11 Laurier Street,
Hull QC K1A 0S5.

Receipts - If you are filing a paper return, include your Schedule 9, as well as your official receipts showing either your or your spouse or common-law partner's name. You do not have to attach receipts for amounts shown in box 46 of your T4 or T4A slips, in box 36 of your T3 slips, in box 34 of your T5013 slips, or on financial statements showing an amount a partnership allocated to you. You may have included with a previous return a receipt for a donation you are claiming for 2002. If so, attach a note indicating the return with which you submitted the receipt.

If you are filing electronically (see filing electronically) keep all of your documents in case we ask to see them.

We will not accept as proof of payment cancelled cheques, credit card slips, pledge forms, or stubs. If you need more details, get Interpretation Bulletin IT-110, Gifts and Official Donation Receipts .

Allowable charitable donations and government gifts
(line 340 of Schedule 9)

Add up all of the donations made in 2002 plus any donations made in any of the previous five years that have not been claimed before. This includes unclaimed gifts to Canada, a province, or a territory made after February 18, 1997, other than those agreed to in writing before February 19, 1997, which you include on line 342 of Schedule 9.

Generally, you can claim all or part of this amount, up to the limit of 75% of your net income (line 236). For the year a person dies and the year before that, this limit is 100% of the person's net income.

Note
If you have taken a vow of perpetual poverty as a member of a religious order, this limit does not apply. Claim your donations on line 256.

Tax Tip
You do not have to claim, on your return for 2002, the donations you made in 2002. It may be more beneficial for you not to claim them for 2002, but to carry them forward and claim them on your return for any of the next five years. No matter how you claim them, you can claim them only once.

Qualified donees

Generally, you can claim only amounts you gave to registered charities and other qualified donees. For a list of the types of donees that qualify, get the Gifts and Income Tax pamphlet, or use Info-Tax, one of our T.I.P.S. services (see T.I.P.S. (Tax Information Phone Service) and T.I.P.S. Online).

Cultural and ecological gifts (line 342 of Schedule 9)

Unlike other donations, your claim for these types of gifts is not limited to a percentage of net income. You can choose the part you want to claim in 2002, and carry forward any unused part for up to five years. For information about the kinds of property to claim, see the Gifts and Income Tax pamphlet.

Date modified:

2002-12-12