On this page…

• Line 206 - Pension adjustment
• Line 207 - Registered pension plan (RPP) deduction
• Line 208 - RRSP deduction
• Maximum contributions you can deduct
• Schedule 7
• Line 209 - Saskatchewan Pension Plan (SPP) deduction
• Line 212 - Annual union,professional, or like dues
• Line 214 - Child care expenses
• Line 215 - Attendant care expenses
• Line 217 - Business investment loss
• Line 219 - Moving expenses
• Line 220 - Support payments made
• Line 221 - Carrying charges and interest expenses

Line 206 - Pension adjustment

Enter on line 206 the total of all amounts in box 52 of your T4 slips, or box 34 of your T4A slips. Generally, this total represents the value of the benefits you earned in 2003 under a registered pension plan (RPP) or a deferred profit-sharing plan (DPSP).

Do not include the pension adjustment (PA) amount in your income, and do not deduct it on your return. Simply enter this amount on line 206. We will use it to calculate your registered retirement savings plan (RRSP) deduction limit for 2004, which we will show on your Notice of Assessment or Notice of Reassessment for 2003. See line 208 for details.

If you have any questions about how your PA was calculated, ask your employer.

Note
If you were a deemed resident and you participated in a foreign pension plan in 2003, you may have to enter an amount on this line. For details, contact us.

Line 207 - Registered pension plan (RPP) deduction

Generally, you can deduct the total of all amounts shown in box 20 of your T4 slips, in box 32 of your T4A slips, or on your union or RPP receipts. Contact us or see guide T4040, RRSPs and Other Registered Plans for Retirement , to find out how much you can deduct if any of the following applies:

• the total is more than $3,500 and your information slip shows a past-service amount for service before 1990;
• you contributed in a previous year and could not deduct part of the contributions; or
• you made contributions to a pension plan in a foreign country.

Receipts - If you are filing a return, do not include your receipts (other than your T4 and T4A slips), but keep them in case we ask to see them.

Note
You cannot deduct contributions you made to pension plans in other countries, with two exceptions. Under the Canada-France Income Tax Convention and the Canada-Netherlands Income Tax Convention, you may be able to deduct contributions to a pension plan. If you have contributed to a pension plan in either France or the Netherlands, contact us to find out if you can deduct the amount.

Line 208 - RRSP deduction

This section gives general information on registered retirement savings plans. If you need more information after reading this section, get guide T4040, RRSPs and Other Registered Plans for Retirement . See "Schedule 7" for details about completing Schedule 7.

Receipts - If you are filing a return, include your official receipts for all amounts you contributed from March 4, 2003, to March 1, 2004, including those you are not deducting on your return for 2003 and those you are designating as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments. See "Lines 6 and 7 - Repayments under the HBP and LLP" for details about HBP and LLP repayments. If you contributed to your spouse or common-law partner's plan, the receipt has to show your name as the contributor and your spouse or common-law partner's name as the annuitant. Also attach Schedule 7 if you have to complete it.

Maximum contributions you can deduct

The maximum you can deduct on line 208 is whichever of the following amounts is less:

• the unused RRSP contributions shown on your Notice of Assessment or Notice of Reassessment for 2002 plus the total of your RRSP contributions made from March 4, 2003, to March 1, 2004 (not including amounts you designate as HBP or LLP repayments, see "Lines 6 and 7 - Repayments under the HBP and LLP"); or
• your RRSP deduction limit for 2003 (see "Line 10 - Contributions based on your RRSP deduction limit for 2003") plus amounts you transfer (see "Line 11 - Transfers") to your RRSP on or before March 1, 2004.

Notes
After the end of the year you turn 69, you cannot contribute to your RRSP, and neither can your spouse or common-law partner. However, you still can contribute to your spouse or common-law partner's RRSP until the end of the year he or she turns 69, and deduct those contributions as long as you still have an unused RRSP deduction limit.

If you contribute more to an RRSP than you can deduct, you may have to pay a special tax of 1% per month. For more details, see the section called "Tax on overcontributions" in guide T4040, RRSPs and Other Registered Plans for Retirement .

Schedule 7

You may not have to complete Schedule 7. To find out, read the information at the top of the schedule. If you do have to complete it, you will find information below about lines 1, 2, 3, 6, 7, 10, 11, and 15 to 18.

Line 1 - Unused RRSP contributions

These are amounts you contributed to your own RRSP or to an RRSP for your spouse or common-law partner after 1990, but did not deduct on line 208 of any previous return or designate as an HBP or LLP repayment. The total of these amounts is shown on your Notice of Assessment or Notice of Reassessment for 2002 if you showed them on a previous year's Schedule 7.

If you do not have your notice, you can find out if you have unused RRSP contributions by using RRSP deduction limit, one of our T.I.P.S. services.

Notes
If you have unused RRSP contributions that you made from March 2, 2002, to March 3, 2003, you should have filed a completed Schedule 7 with your 2002 return. If you did not, you should submit your receipts and a completed copy of a 2002 Schedule 7 to your tax centre, but not with your return for 2003. See "How do you change a return?" for details.

If you have unused contributions that you made from January 1, 1991, to March 1, 2002, but did not show on a Schedule 7 for 2001 or earlier, contact us.

Lines 2 and 3 - Total RRSP contributions

This total includes amounts you:

• contributed to your own RRSP or an RRSP for your spouse or common-law partner from March 4, 2003, to March 1, 2004;
• transferred to your own RRSP (see "Line 11 - Transfers"); and
• designate as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments (see "Lines 6 and 7 - Repayments under the HBP and LLP").

Make sure you include on these lines any contributions you made from January 1, 2004, to March 1, 2004, even if you are not deducting or designating them on your return for 2003. Otherwise, we may reduce or disallow your claim for these contributions on your return for a future year.

Do not include the following amounts:

• Any unused RRSP contributions you made on or after March 4, 2003, that were refunded to you or your spouse or common-law partner in 2003. Report the refund on line 129 of your return for 2003. You may be able to claim a deduction on line 232.
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse or common-law partner less than 90 days before either of you withdrew funds from that RRSP under the HBP or LLP. For more details, get guide RC4135, Home Buyers' Plan (HBP) , or guide RC4112, Lifelong Learning Plan (LLP) .
• Any payment directly transferred to your RRSP if you did not receive an information slip for it or if it is shown in box 35 of your T4RSP or T4RIF slip.
• The part of an RRSP withdrawal that you recontributed to your RRSP and deducted on line 232. This would have happened if, in error, you withdrew more RRSP funds than necessary to obtain past-service benefits under a registered pension plan (RPP).
• The excess part of a direct transfer of a lump-sum payment from your RPP to an RRSP or registered retirement income fund (RRIF) that you withdrew and are including on line 129 or 130 of your return for 2003, and deducting on line 232.

Lines 6 and 7 - Repayments under the HBP and LLP

If you withdrew funds from your RRSP under the Home Buyers' Plan (HBP) before 2002, you have to make a repayment for 2003. If you withdrew funds from your RRSP under the Lifelong Learning Plan (LLP) before 2002, you may have to make a repayment for 2003. In either case, the minimum amount you have to repay for the year is indicated on your Notice of Assessment or Notice of Reassessment for 2002.

To make a repayment for 2003, contribute to your own RRSP from January 1, 2003, to March 1, 2004, and designate your contribution as a repayment on line 6 or 7 of Schedule 7. Do not include an amount you deducted or designated as a repayment on your 2002 return, or that was refunded to you. Do not make your repayment to us. You cannot deduct any RRSP contribution you designate as an HBP or LLP repaymenton Schedule 7.

Note
If you repay less than the minimum amount for 2003, you have to include the difference on line 129 of your return.

Non-residents and non-residents electing under section 217 - If you ceased to be a resident of Canada after you withdrew an amount under the LLP, or after you bought or built a qualifying home with funds you withdrew under the HBP, you should have repaid the amount to us by now. If not, you should contact the International Tax Services Office.

Line 10 - Contributions based on your RRSP deduction limit for 2003

Your RRSP deduction limit for 2003 is shown on your Notice of Assessment or Notice of Reassessment for 2002, or, if we sent you one, on Form T1028, Your RRSP Information for 2003. You can carry forward indefinitely any part of your RRSP deduction limit accumulated after 1990 that you do not use.

If you do not have your notice or Form T1028, you can find out your limit for 2003 by using RRSP deduction limit, one of our T.I.P.S. services, or by contacting us.

If you would like to calculate your RRSP deduction limit for 2003, get guide T4040, RRSPs and Other Registered Plans for Retirement .

Note
In a previous year, you may have received income for which you could contribute to an RRSP, but you may not have filed a return for that year. If you want to keep your RRSP deduction limit up to date, you have to file a return for that year.

Line 11 - Transfers

You may have reported income on line 115, 129, or 130 of your return for 2003. If you contributed certain types of this income to your own RRSP on or before March 1, 2004, you can deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your "RRSP deduction limit for 2003."

For example, if you received a retiring allowance in 2003, you would report it on line 130 of your return. You can contribute to your RRSP up to the eligible part of that income (box 26 of your T4A slip) and deduct it as a transfer. Include the amounts you transfer on lines 2 or 3 and 11 of Schedule 7.

For more information about amounts you can transfer, get guide T4040, RRSPs and Other Registered Plans for Retirement .

Non-residents and non-residents electing under section 217 - You can transfer certain Canadian-source amounts otherwise subject to withholding tax to a registered retirement savings plan (RRSP), a registered pension plan (RPP), or a registered retirement income fund (RRIF) without having tax withheld. These amounts include payments out of an RPP, deferred profit-sharing plan, an RRIF, an RRSP, or a retiring allowance. The transfers have to be direct transfers, and you have to complete Form NRTA1, Authorization for Non-Resident Tax Exemption . For more information, contact us.

Lines 15 to 18 - 2003 withdrawals under the HBP and the LLP

On line 15, enter the total of your HBP withdrawals for 2003 from box 27 of your T4RSP slips. In addition, check the box at line 16 if the address of the home you acquired with these withdrawals is the same as the address on page 1 of your return.

On line 17, enter the total of your LLP withdrawals for 2003 from box 25 of your T4RSP slips. In addition, you can check the box at line 18 to designate that your spouse or common-law partner was the student for whom the funds were withdrawn. If you do not check the box, you will be considered to be the student for LLP purposes. You can change the person you designate as the student only on the return for the year you make your first withdrawal.

The guides RC4135, Home Buyers' Plan (HBP) , and RC4112, Lifelong Learning Plan (LLP) , include more information about:

• when you have to make your repayments; and
• the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident.

Line 209 - Saskatchewan Pension Plan (SPP) deduction

You can deduct contributions to the SPP for 2003, up to whichever of the following three amounts is least:

• $600;
• your 2003 RRSP deduction limit minus your RRSP deduction from line 208 (not including transfers to your RRSP); or
• the total amount you contributed to the SPP for yourself or your spouse or common-law partner from January 1, 2003, to March 1, 2004, not including any contributions that you deducted on your 2002 return.

Receipts - If you are filing a return, include your receipts.

Line 212 - Annual union, professional, or like dues

Enter the total of the following amounts related to your employment that you paid (or that were paid for you and included in your income) in the year:

• annual dues for membership in a trade union or an association of public servants;
• professions board dues required under provincial or territorial law;
• professional or malpractice liability insurance premiums or professional membership dues required to keep a professional status recognized by law; and
• parity or advisory committee (or similar body) dues required under provincial or territorial law.

Annual membership dues do not include initiation fees, licences, special assessments, or charges for anything other than the organization's ordinary operating costs. You cannot claim charges for pension plans as membership dues even if your receipts show them as dues. For more information, get Interpretation Bulletins IT-103, Dues Paid to a Union or to a Parity or Advisory Committee , and IT-158, Employees' Professional Membership Dues .

The amount shown in box 44 of your T4 slip, or on your receipts, includes any GST/HST you paid.

Receipts - If you are filing a return, do not include your receipts (other than your T4 slips) but keep them in case we ask to see them.

Line 214 - Child care expenses

You or your spouse or common-law partner may have paid for someone to look after your child so one of you could earn income, go to school, or conduct research in 2003. The expenses are deductible only if, at some time in 2003, the child was under 16 or had a mental or physical infirmity. Generally, only the spouse or common-law partner with the lower net income (even if it is zero) can claim these expenses.

For more information, and to make your claim, get Form T778, Child Care Expenses Deduction for 2003 . However, if you claimed child care expenses on your 2002 return, the package we mailed to you should include this form.

Non-residents and non-residents electing under section 217 - You can only deduct child care expenses if you meet the criteria outlined on Form T778 and the expenses were paid to a resident of Canada for services provided in Canada.

Receipts - If you are filing a return, include a completed Form T778, but not your receipts. Keep them in case we ask to see them.

Line 215 - Attendant care expenses

If you can claim the disability amount (line 316 on Schedule 1), you can claim expenses you paid for personal attendant care that allowed you to go to school or to earn certain income. This includes income from employment or self-employment and a grant you received for conducting research.

To calculate your claim, complete Form T929, Attendant Care Expenses . For more information, see Form T929 or use Info-Tax, one of our T.I.P.S. services.

Receipts - If you are filing a return, do not include your receipts or Form T929, but keep them in case we ask to see them.

Line 217 - Business investment loss

A business investment loss is a special type of capital loss. Such a loss can occur, for example, when you dispose of shares or certain debts of a small business corporation. For more information, and to find out how to complete lines 217 and 228 (to the left of line 217), get guide T4037, Capital Gains .

If you have a tax shelter, see "Tax shelters".

Non-residents and non-residents electing under section 217 - A business investment loss applies to you only if the loss arises from the disposition of taxable Canadian property.

Line 219 - Moving expenses

Deemed residents - Generally, you can deduct moving expenses you paid in 2003 if both of the following apply:

• You moved to work or run a business, or to study full-time at an educational institution that offers post-secondary courses.
• You moved at least 40 kilometres closer to your new work or school.

Notes
If you moved in 2002 but could not claim all your expenses on your return for that year, you may be able to claim the remaining expenses on your return for 2003.

In addition, if you pay expenses after the year of your move, you may be able to claim them on your return for the year you pay them. You may carry forward unused amounts until you have enough income to claim them.

Your deduction is limited to the amount of income you earned at the new location. For more information, and to calculate how much you can deduct, get Form T1-M, Moving Expenses Deduction . Make sure you tell us your new address.

Non-residents and non-residents electing under section 217 - You can only deduct moving expenses if you were a full-time student during 2003. If this is your situation, contact the International Tax Services Office for the special rules that apply to you.

Receipts - If you are filing a return, do not include your receipts or Form T1-M, but keep them in case we ask to see them.

Line 220 - Support payments made

Enter on line 230 the total of all support payments for a spouse or common-law partner, or for a child, that you made (or, if you are the payee, you repaid them under a court order) in 2003. Claim on line 220 only the deductible amount. Most child support payments paid according to a written agreement or court order dated after April 1997 are not deductible. For more details, get pamphlet P102, Support Payments .

Generally, to be allowed your claim, you should register your written agreement or court order (including any changes) with us. For more information, get Form T1158, Registration of Family Support Payments .

Receipts - If you are filing a return, do not include your receipts or cancelled cheques, or your court order or written agreement. Keep them in case we ask to see them.

Line 221 - Carrying charges and interest expenses

You can claim the following carrying charges and interest you paid to earn income from investments:

• fees to manage or take care of your investments (other than administration fees you paid for your registered retirement savings plan or registered retirement income fund), including safety deposit box charges;
• fees for certain investment advice (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel ) or for recording investment income;
• fees to have someone complete your return, but only if you have income from a business or property, accounting is a usual part of the operations of your business or property, and you did not use the amounts claimed to reduce the business or property income you reported (see Interpretation Bulletin IT-99, Legal and Accounting Fees ); and
• most interest you pay on money you borrow, but generally only as long as you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. For details, contact us.

You cannot deduct on line 221 any of the following amounts:

• the interest you paid on money you borrowed to contribute to a registered retirement savings plan or a registered education savings plan;
• the interest portion of your student loan repayments (although you may be able to claim a credit on line 319 on Schedule 1 for this amount);
• subscription fees paid for financial newspapers or magazines, or newsletters; and
• brokerage fees or commissions you paid when you bought or sold securities. Instead, you use these costs when you calculate your capital gain or capital loss. For more information, get guide T4037, Capital Gains , and Interpretation Bulletin IT-238, Fees paid to investment counsel .

Canada Savings Bonds (CSBs) - When you buy bonds through payroll deductions, you may pay an interest charge. You can claim this amount on line 221.

Example
David bought a $1,000 CSB through payroll deductions. The total amount deducted from his pay for the bond was $1,017.94 (the $1,000 face value of the bond plus $17.94 he paid in interest). David can claim the $17.94 on line 221.

Policy loan interest - To claim interest you paid during 2003 on a policy loan made to earn income, have your insurer complete Form T2210, Verification of Policy Loan Interest by the Insurer , on or before April 30, 2004.

Refund interest - If we paid you interest on an income tax refund, you have to report the interest in the year you receive it, as we explain at line 121 in this guide. If we then reassessed your return and you repaid any of the refund interest in 2003, you can deduct the amount you repaid, up to the amount you had included in your income.

Carrying charges for foreign income - If you have carrying charges for Canadian and foreign investment income, identify them separately on Schedule 4, according to the percentage that applies to each investment.

Receipts - To make your claim, complete Part IV of Schedule 4. If you are filing a return, do not include your receipts or Form T2210, but keep them in case we ask to see them.

If you have a tax shelter, see "Tax shelters".

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