Non-refundable tax credits

Non-refundable tax credits reduce the amount of income tax you owe. However, if the total of these credits is more than the amount you owe, you will not get a refund for the difference.

The information at lines 300 to 307 and 315 explains, in general, how to claim personal amounts. For more details, get Interpretation Bulletin IT-513, Personal Tax Credits.

What amounts can you claim?

Deemed residents - You can claim all the non-refundable tax credits that apply to you.

Non-residents - You can claim the non-refundable tax credits on lines 316, 319, 323 (other than the education amount), and 349 if they apply to you. In addition, you can claim the other applicable non-refundable tax credits if you have included at least 90% of your 1999 net world income on line 236 of your return. To determine the amount you can claim, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits. These schedules are included in this guide.

Non-residents electing under section 217 - If you have included at least 90% of your 1999 net world income on line 236 of your return, you can claim all of the non-refundable tax credits that would apply to you if you had been resident in Canada throughout 1999. If you do not meet this 90% rule, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine the amount you can claim. These schedules are included in this guide.

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

You may be able to claim a personal 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 (line 303), for your or your spouse's children and grandchildren who were born in 1981 or earlier and who were mentally or physically infirm (line 306), or for both. You cannot claim an amount for any other relatives who lived outside Canada for all of 1999.

If your spouse, or your or your spouse's children or grandchildren 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.

How to claim

• Follow the instructions at lines 303 and 306 to calculate your spousal amount, and amounts for infirm dependants age 18 or older.
• Attach proof of your support payments to your return. 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 the basic personal amount. Under proposed changes, this amount is $6,794.

You may be able to claim an additional amount on line 307.

Non-residents and non-residents electing under section 217 - To determine whether you can claim this amount, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits. Attach Schedule A to your return.

Line 301 - Age amount

If you were 65 or older on December 31, 1999, and your net world income (line 236 of your return if you were a deemed resident; and line 14 of Schedule A, Statement of World Income, if you were a non-resident or a non-resident electing under section 217) is:

• $25,921 or less, enter $3,482 on line 301;
• more than $25,921, but less than $49,134, use the chart for line 301 on the Worksheet you will find in the centre of this guide to calculate your claim; or
• $49,134 or more, you cannot claim the age amount.

Date of birth - Be sure to enter your date of birth in the Identification area on page 1 of your return.

Tax Tips
If you do not need all of your age amount to reduce your federal income tax to zero, you can transfer the unused part to your spouse. See line 326 for details.

You may be able to claim all or part of your spouse's age amount. See line 326 for details.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 303 - Spousal amount

You may be able to claim a spousal amount if, in 1999, you had a spouse (see page 14) whom you supported. In the Identification area on page 1 of your return, be sure to enter the information concerning your spouse. If your spouse's net world income (see the next section) is:

• under proposed changes, $572 or less, claim $5,718;

• more than $572, but less than $6,290, complete the calculation on line 303 of your return; or
• $6,290 or more, you cannot claim a spousal amount.

You may be able to claim an additional amount on line 307.

Net world income of spouse

If your spouse was a deemed resident in 1999, your spouse's net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return.

If your spouse was a non-resident in 1999, your spouse's net world income is his or her income for 1999 from all sources both inside and outside Canada.

If you were living with your spouse on December 31, 1999, use your spouse's net world income for the whole year. This applies even if you got married in 1999, or if you separated and got back together in 1999.

If you separated in 1999 because of a breakdown in your relationship, and were not back together on December 31, 1999, reduce your claim only by your spouse's net world income before the separation. For a common-law spouse, you also have to be separated for at least 90 days.

There are exceptions to the above rules if you were required to make support payments to your spouse or former spouse. Get the pamphlet called Support Payments to help you prepare your return correctly.

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

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 305 - Equivalent-to-spouse amount

You may be able to claim an equivalent-to-spouse amount if, at any time in the year, you were single, divorced, separated, or widowed and, at that time, you supported a dependant to whom all of the following applied. The dependant:

• was under 18, your parent or grandparent, or mentally or physically infirm;
• was related to you by blood, marriage, or adoption;
• lived with you in a home that you maintained; and
• in most cases, lived in Canada.

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.

You cannot claim this amount if any of the following applies:

• The dependant's net world income is, under proposed changes, $6,290 or more.

• You are claiming a spousal amount (see line 303).
• The claim is for your common-law spouse. However, you may be able to claim the spousal amount on line 303.
• Someone else in your household is making this claim. Each household is allowed only one claim for the equivalent-to-spouse 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 separated in 1999, due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

Note
If you were separated, but reconciled during the year, you can claim the equivalent-to-spouse amount if you otherwise qualify for it and do not claim the spousal amount (line 303) for the year.

You may be able to claim an additional amount on line 307.

How to claim

• Calculate your dependant's net world income. If your dependant is a deemed resident, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return. If your dependant is a non-resident, his or her net world income is his or her net income for 1999 from all sources both inside and outside Canada. Use the chart for line 305 on the Worksheet you will find in the centre of this guide to calculate your claim.
• Complete the appropriate part of Schedule 5 and attach the schedule to your 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, but cannot agree who will claim it, neither of you is allowed to claim the amount.

Tax tip
If the dependant is infirm, see "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 306 - Amount for infirm dependants age 18 or older

You can claim an amount for your or your spouse's dependent child or grandchild only if that child or grandchild was mentally or physically infirm and was born in 1981 or earlier.

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

• your or your spouse's parent, grandparent, brother, sister, aunt, uncle, niece, or nephew;
• born in 1981 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.

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 anyone who has become dependent on you, even if he or she is older than you.

If someone else is claiming an amount on line 305 for a dependant, 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 may also be able to claim an amount on line 306 for that dependant. You can claim an amount only if the dependant's net world income is less than $6,794.

If you were required to make child support payments for that child, you cannot claim an amount on line 306 for that child. However, if you separated in 1999 due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

How to claim

• Calculate the net world income of each of your dependants. If your dependant is a deemed resident, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return. If your dependant is a non-resident, his or her net world income is his or her net income for 1999 from all sources both inside and outside Canada. Use the chart for line 306 on the Worksheet you will find in the centre of this guide to calculate your claim.
• Complete the appropriate part of Schedule 5 and attach the schedule to your return. You also should have a signed statement from a 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.

If your dependant's net world income is more than $4,441, it may be better for you to claim the amount at line 315.

Tax Tip
See "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 307 - Personal amount supplement

Complete Schedule 13 to claim this amount if, in 1999, you were in either of the following situations:

A. Your net world income (line 236 or line 14 of Schedule A, whichever applies) was more than $6,794 but less than $19,794, and one of the following applies:

• You neither had a spouse, nor lived with a person described at line 305.
• You had a spouse, or lived with a person described at line 305, but his or her net world income was more than $7,293.

B. The previous situation does not apply, but all of the following apply:

• You had a spouse, or lived with a person described at line 305.
• Your spouse, or the person described at line 305, had a net world income of less than $7,294.
• The total of your net world income and the net world income of your spouse (or the person described at line 305) was less than $39,588.

In that case, enter on line 393 of Schedule 13 your spouse's net world income, or enter on line 397 the net world income of the person described at line 305.

Tax tip
If your spouse, or the person described at line 305, had a net world income of more than $6,794, but less than $7,294, he or she also should claim an amount on line 307 of his or her own return.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 308 - Canada or Quebec Pension Plan contributions through employment

Enter the total, in dollars and cents, of the amounts shown in boxes 16 and 17 of your T4 slips. Do not enter more than $1,186.50. If you contributed to the QPP in 1999 but do not have to file a return for the province of Quebec, attach to your return the RL-1 slip your employer sent you.

If you contributed more than $1,186.50, 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 have to file a return for the province of Quebec, and you contributed more than $1,186.50, claim the overpayment on your Quebec provincial return.

In some cases, you may have an overpayment, even if you contributed less than $1,186.50. For example, we will prorate your CPP or QPP contribution, and show the correct amount on your Notice of Assessment if, in 1999, either of the following situations applied to you:

• You were a CPP participant and you turned 18 or 70, or received a CPP retirement or disability pension.
• You were a QPP participant and you turned 18 or received a QPP disability pension.

If you would like to calculate your CPP overpayment, get Form T2204, Employee Overpayment of 1999 Canada Pension Plan Contributions and 1999 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" on this page.

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 shown in box 16 of your T4 slip, you may be able to contribute to the CPP on this income. See "Making additional CPP contributions" on this page for details.

Line 310 - Canada or Quebec Pension Plan contributions payable on self-employment and other earnings

You can claim an amount for the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions that you have to make on self-employment earnings and on limited or non-active partnership income.

If you have both employment and self-employment earnings, the amount of CPP or QPP contributions that you have to make on your self-employment earnings will depend on how much you have already contributed to the CPP or QPP as an employee. You cannot use your self-employment losses to reduce the CPP or QPP contributions that you paid on your employment earnings.

Making additional CPP contributions

You may not have contributed to the CPP for certain income you earned through employment, or you may have contributed less than you were allowed. This can happen if any of the following applies. You:

• had more than one employer in 1999;
• had income, such as tips, from which your employer did not have to withhold contributions; or
• were in a type of employment that was not covered under CPP rules, such as casual employment.

To make additional CPP contributions for 1999, get Form CPT20, Election to Pay Canada Pension Plan Contributions. Attach a completed copy to your return, or send it to us separately before May 1, 2001. This form lists the eligible employment income on which you can make additional CPP contributions.

If the amount on line 308 is less than $1,186.50, you can contribute 7% on any part of the income on which you have not already made contributions. The 1999 income limit for which you can contribute to the CPP is $37,400. Making additional contributions may increase the pension you receive later.

Complete Schedule 8 to calculate your additional CPP contributions. Include them on lines 310 and 421.

Making optional QPP contributions

Include on line 310 any optional QPP contributions you made on your Quebec provincial return, if you filed one.

Also, attach a completed Schedule 8 to show how you calculated the amount.

How to calculate your contributions

Complete Schedule 8 to calculate your CPP or QPP contributions payable, and attach it to your return. If you were a member of a partnership, make sure you include only your share of the net profit or loss.

If you do not have to file a return for the province of Quebec, use the amounts on lines 135 to 143 and line 122 of your return. Enter on line 310 and line 421 the required contribution in dollars and cents.

If you do have to file a return for the province of Quebec, use the amounts on line 164 of your Quebec provincial return. Enter on line 310 the amount of the contribution in dollars and cents.

Note
We will prorate your CPP or QPP contribution, and show the correct amount on your Notice of Assessment in certain situations, such as if, in 1999, you:

• were a CPP participant and you turned 18 or 70, or received a CPP retirement or disability pension; or
• were a QPP participant and you turned 18 or received a QPP disability pension.

Line 312 - Employment Insurance premiums

Enter the total, in dollars and cents, of the amounts shown in box 18 of all your T4 and T4F slips. Do not enter more than $994.50. If you contributed more than $994.50, 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.

In some cases, you may have an overpayment even if you contributed less than $994.50. If so, we will calculate your overpayment and show it on your Notice of Assessment. If you would like to calculate your overpayment, get Form T2204, Employee Overpayment of 1999 Canada Pension Plan Contributions and 1999 Employment Insurance Premiums.

If the total of the Employment Insurance (EI) insurable earnings shown in box 24 of all your T4 slips (or box 14 if box 24 is blank) and box 16 of your T4F slips is $2,000 or less, we will refund your total EI premiums to you or use the amount to reduce your balance owing. In this case, do not enter your total EI premiums on line 312. Instead, enter the amount on line 450.

If your total EI insurable earnings are more than $2,000 and less than $2,059, we will refund a part of your EI premiums to you or use the amount to reduce your balance owing. In this case, enter your total EI premiums on line 312. We will calculate your refund and show it on your Notice of Assessment. If you would like to calculate your refund yourself, get 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.

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, and retiring allowances do not qualify.

Use the chart for line 314 on the Worksheet you will find in the centre of this guide to calculate your claim.

Tax Tips
If you do not need all of your pension income amount to reduce your federal income tax to zero, you can transfer the unused part to your spouse.

You may be able to claim all or part of your spouse's pension income amount. See line 326 for details.

Non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 315 - Caregiver amount

If, at any time in 1999, 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;
• your brother, sister, niece, or nephew, parent or grandparent (including in-laws) who was a resident (including a deemed resident) of Canada; or
• your aunt or uncle who was a resident (including a deemed resident) of Canada.

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 world income of less than $13,853; and
• been dependent on you due to mental or physical infirmity or, if he or she is your parent or grandparent (including in-laws) born in 1934 or earlier.

If your dependant is a deemed resident, his or her net world income is the amount on line 236 of his or her return, or the amount that it would be if he or she filed a return. If your dependant is a non-resident, his or her net world income is his or her net income for 1999 from all sources both inside and outside Canada.

Use the chart for line 315 on the Worksheet you will find in the centre of this guide to calculate your claim. Complete the appropriate part of Schedule 5 and attach the schedule to your return to claim this amount.

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.

You cannot claim this amount for a dependant if anyone claims an amount on line 306 for that dependant or anyone other than you claims an amount on line 305 for that dependant. See "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 316 - Disability amount

You may be able to claim a disability amount of $4,233 if a qualified person certifies both of the following:

• You had a severe mental or physical impairment in 1999, which 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.

The only persons who can qualify to certify that your impairment was severe and prolonged are doctors, optometrists, psychologists, occupational therapists, and audiologists.

You may be markedly restricted in a basic activity of daily living if either:

• you are blind; or
• you are unable to feed and dress yourself, control bowel and bladder functions, walk, speak, hear, or perceive, think, and remember. You may also be markedly restricted if it takes you an extremely long time to perform any of these activities, even with therapy and the use of appropriate aids and medication.

Note
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 credit. To qualify for the disability amount, your ability to perform an activity of daily living has to be markedly restricted all or almost all of the time.

Tax Tip
See "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

How to claim

• If you are making a new application for this 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 you qualify. Once we approve your claim, you will be able to claim this amount for future years, as long as your circumstances do not change.
• If you were allowed the disability amount in 1998 and you still met the eligibility requirements in 1999, you can claim the disability amount in 1999 without sending us another Form T2201. However, you have to send us a new one if the period stated on the certificate ended in 1998 or earlier.

We will accept a photocopy of your Form T2201 only if the signature of the person authorized to sign it is an original, not a photocopy. For more details, get the guide called Information Concerning People with Disabilities. That guide also contains Form T2201.

Transfers

You can transfer to your spouse the part of your disability amount you do not need to use to reduce your federal income tax to zero. Your spouse would claim it on line 326 of his or her return. If you do not transfer this amount to your spouse, you can transfer it to another supporting person, who would claim it on line 318 of his or her return.

If your spouse does not need to use all of his or her disability amount, you may be able to claim the unused part on line 326. If you have another dependant who does not need to use all of this amount, you may be able to claim the unused part on line 318.

Line 318 - Disability amount transferred from a dependant other than your spouse

You may be able to claim all or part of any disability amount (line 316) for which your dependant qualifies. You can claim the unused part if he or she was a resident (including a deemed resident) of Canada at any time in 1999, and was dependent on you because of his or her mental or physical infirmity. In addition, one of the following has to apply:

• you claimed an equivalent-to-spouse amount on line 305 for that dependant;
• the dependant was your or your spouse's child, grandchild, parent, or grandparent, and you could have claimed an equivalent-to-spouse amount on line 305 for that dependant if you did not have a spouse and if the dependant did not have any income;
• the dependant was your or your spouse's child, grandchild, parent, or grandparent, and you made a claim on line 306 or 315 for that dependant;
• the dependant was your or your spouse's child or grandchild, and you could have made a claim on line 306 or 315 for that dependant if he or she had no income and had been 18 years of age or older in 1999; or
• the dependant was your or your spouse's parent or grandparent, and you could have made a claim on line 306 or 315 for that dependant if he or she had no income.

If you are required to make child support payments for your child, you cannot claim a disability amount for that child. However, if you separated in 1999 due to a breakdown in your relationship, some special rules apply. For details, get the pamphlet called Support Payments.

Tax Tip
See "Options" in the guide called Information Concerning People with Disabilities for details about different amounts you may be able to claim.

How to claim

• Use the chart for line 318 on the Worksheet you will find in the centre of this guide to calculate how much of each dependant's disability amount you can claim.
• Attach to your return a properly completed and certified Form T2201, Disability Tax Credit Certificate, for each dependant. If you were allowed a disability amount in a previous year and the dependant still met the eligibility requirements in 1999, you can claim the disability amount in 1999 without sending us another Form T2201. However, you have to send us a new one if the period stated on the certificate ended in 1998 or earlier. If you are not attaching Form T2201 for a dependant, attach a note stating the dependant's name, social insurance number, and relationship to you.

If you are splitting this claim for a dependant, attach a note to your return including the name and social insurance number of anyone else making this claim. The total claimed for that dependant cannot be more than the amount on line 5 of the chart or $4,233, whichever is less.

You can claim this credit only if the spouse of the person with a disability is not already claiming the disability tax credit or any other non-refundable tax credit (other than medical expenses) for the person with a disability, and you supported that person.

Tax Tip
If you can claim this amount, you also may be able to claim an amount on line 315 for the same dependant.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 319 - Interest paid on your student loans

You can claim an amount for most of the interest you, or a person related to you, paid after 1997 on loans made to you for post-secondary education under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial or territorial government laws. For more details, get the pamphlet called Students and Income Tax.

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 any one of the next five years' returns.

Receipts - Attach to your return the receipts for the amounts you claim.

Line 323 - Tuition and education amounts

Claim your eligible tuition and education amounts for 1999, and any unused amounts carried forward from previous years, that are shown on your 1998 Notice of Assessment or Notice of Reassessment. See "Transferring and carrying forward amounts" on page 44 for more information. Attach to your return a completed Schedule 11. For more details, get the pamphlet called Students and Income Tax.

Receipts - Do not include your receipts or forms (other than Schedule 11) with your return. However, keep them in case we ask to see them.

Claiming your eligible tuition fees

You can claim only the fees paid for courses you took in 1999. Most courses at the post-secondary level or that develop or improve skills in an occupation qualify. However, more than $100 for the year must have been paid to each educational institution whose fees you claim.

You cannot claim other expenses, such as books, or board and lodging. The Students and Income Tax pamphlet has details about what kinds of institutions and fees qualify.

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 TL11D, Tuition Fees Certificate - Educational Institutions Outside Canada for a Deemed Resident, 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 the International Tax Services Office. You also can get Form TL11B from your flying school or club.

Claiming your education amount

You can claim this amount for each whole or part month in 1999 in which you were enrolled in a qualifying educational program. 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.

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:

• You can claim $200 for each month in which you were enrolled as a full-time student. You can still make this claim if you could attend only part-time because of a mental or physical impairment. However, in that case, you have to have Form T2202, Education Amount Certificate, completed to make your claim.
• You can claim $60 for each month in which you were enrolled in a qualifying part-time program.

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

Transferring and carrying forward amounts

You have to show your tuition and education amounts first on your own return, even if someone else paid your fees. However, you can transfer to your spouse the part of your tuition and education amounts you do not need to use to reduce your federal income tax to zero. Your spouse would claim it on line 326 of his or her return. If you do not transfer this amount to your spouse, you can transfer it to your or your spouse's parent or grandparent, who would claim it on line 324 of his or her return.

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

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. 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.

Tax Tips
If you are transferring an amount to another person, do not transfer more than the person needs to reduce his or her federal income tax to zero. That way, you can carry forward as much as possible to use in a future year.

If your spouse does not need to use all of his or her tuition and education amounts, you may be able to claim the unused part on line 326. If your child or grandchild does not need to use all of these amounts, you may be able to claim the unused part on line 324.

Non-residents and non-residents electing under section 217 - If the education amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 324 - Tuition and education amounts transferred from a child

A student who does not need all of his or her 1999 tuition and education amounts to reduce his or her federal income tax to zero may be able to transfer the unused part to you if you are a parent or grandparent of the student or of the student's spouse. The maximum amount that each student can transfer is $5,000 minus the amount the student needs, even if there is still an unused part.

How to claim

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

Amounts claimed by student's spouse - If a student's spouse claims amounts on line 303 or 326 for the student, you cannot claim the tuition and education amounts transfer. However, the student can designate that the spouse claim the transfer on line 326.

No amounts claimed by student's spouse - If no amounts are claimed for the student by the student's spouse, or if the student does not have a spouse, the student can choose which parent or grandparent will claim the tuition and education amounts transfer. Only one person can claim the transfer from the student. However, it does not have to be the same parent or grandparent as the person who claims the student as a dependant on line 305 or 306.

Receipts - Do not include the student's Schedule 11, forms, or official tuition fees receipt with your return. However, keep them in case we ask to see them.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 326 - Amounts transferred from your spouse

Your spouse (as defined on page 14) can transfer to you any part of certain amounts that he or she qualifies for but does not need to reduce his or her federal income tax to zero. For more details and to calculate your claim, see Schedule 2.

In the Identification area on page 1 of your return, be sure to show your marital status and your spouse's name and social insurance number or temporary taxation number.

Receipts - Attach to your return your spouse's Form T2201, Disability Tax Credit Certificate. If you were (or your spouse was) allowed a disability amount in a previous year for your spouse's condition, and your spouse still met the eligibility requirements in 1999, you can claim the disability amount without sending us another Form T2201. However, you have to send us a new one if the period stated on the certificate ended in 1998 or earlier.

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

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 330 - Medical expenses

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

• yourself;
• your spouse;
• your or your spouse's child or grandchild who depended on you for support; and
• your or your spouse's parent, grandparent, brother, sister, uncle, aunt, niece, or nephew who lived in Canada or who was a deemed resident of 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 1999 and not claimed in 1998. Generally, you can claim all amounts paid, even if they were not paid in Canada. Your total expenses have to be more than either $1,614 or 3% of your net income (line 236) whichever is less.

Allowable medical expenses

The most common medical expenses you can claim are:

• payments to a doctor, dentist, nurse, or public or licensed private hospital;
• payments for artificial limbs, wheelchairs, crutches, hearing aids, prescription eyeglasses or contact lenses, dentures, pacemakers, prescription drugs, and certain prescription medical devices;
• amounts paid for attendant care, or care in an establishment (see "Options" in the guide called Information Concerning People with Disabilities);
• expenses for guide and hearing-ear dogs; and
• premiums paid under the Quebec Medical Insurance Plan, and premiums paid to private health services plans (other than those paid by an employer).

Under proposed changes, you can claim amounts paid for the following:

• If you paid fees to a group home in Canada for individuals who qualify for the disability amount (line 316) the part of those fees paid to someone to care for or supervise such an individual, if nobody has claimed it as an attendant- or institutional-care medical expense on line 330, a child care expense on line 214, or an attendant care expense on line 215 for that person.
• Therapy provided for a person who qualifies for the disability amount (line 316) by someone who is neither under 18 nor your spouse. This does not include amounts paid to a medical practitioner, such as a qualified therapist, because these amounts are already allowable as medical expenses. The therapy has to be prescribed and supervised by a doctor, a psychologist (in the case of a mental disability), or an occupational therapist (in the case of a physical disability).
• Tutoring that a medical practitioner certifies as necessary because of a person's learning disability or mental impairment, by someone who is in the business of providing such services to the public.
• "Talking textbooks" prescribed by a medical practitioner for someone who has a perceptual disability and is enrolled in an educational institution in Canada.

For more examples of allowable medical expenses, contact the International Tax Services Office.

Notes
If you claim medical expenses for a dependant (other than your spouse) whose net income is more than $7,044, you have to reduce your claim. See line 331 for details.

In addition, there is a refundable tax credit for working individuals with low incomes and high medical expenses. See line 452 for details.

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 now have an option to simplify the calculation of this amount. For more information, contact the International Tax Services Office.

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

Calculate your claim as follows:

• Choose the 12-month period ending in 1999 for which you will claim medical expenses. You cannot include any expenses you deducted on your 1998 return.
• Add up your allowable medical expenses for that period, and enter the total on line 330.
• Subtract $1,614 or 3% of your net income (line 236) whichever is less.
• Compare the result with the amount your spouse would be allowed. It may be better for the spouse with the lower income to claim the allowable medical expenses. You can make whichever claim you prefer.

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

Receipts - Attach your receipts and other documents (other than your health services plan premium receipts) to your return. Receipts for attendant care or therapy paid to an individual should show the individual's name and social insurance number. Keep your health services plan premium receipts in case we ask to see them.

For claims where a properly completed and certified Form T2201 is required, also attach it, unless a disability amount was allowed for the person in a previous year and the person still met the eligibility requirements in 1999.

The following example shows how to calculate your claim.

Example
Carol and her husband have reviewed their medical bills and decided that the 12-month period ending in 1999 for which they will calculate their claim is July 1, 1998, through June 30, 1999. The total of their allowable expenses for that period is $1,842, which Carol enters on line 330.

Her net income on line 236 of her return is $32,000. She calculates 3% of that amount as $960. Because the result is less than $1,614, she enters $960 on the line below line 330, and subtracts it from $1,842. The difference is $882, which is the amount she enters on line 332.

Carol's husband's net income is $48,000. When they calculate the amount that he would be allowed if he made the claim instead, they find that he would be allowed only $402. In this case, they have found that it is better for Carol to claim the expenses.

Non-residents and non-residents electing under section 217 - If this amount applies to you, complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine if you can claim it. Attach Schedule A to your return.

Line 331 - Medical expenses adjustment

If you claimed medical expenses for a dependant, other than your spouse, whose net income was more than $7,044, you have to reduce your medical expenses by making the following adjustment:

• Subtract $7,044 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.
• Complete this calculation for each such dependant.
• Enter on line 331 of your return 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 335

If the amount on line 335 equals, or is more than, the amount on line 260, and is less than $29,591, enter "0" on line 420, and complete the rest of your return. In any other case, see line 338.

Line 338

Deemed residents - To calculate your non-refundable tax credits, multiply the amount on line 335 by 17%. If you are not claiming charitable donations or cultural or ecological gifts, enter the amount from line 338 on line 350 and go to "Federal tax calculation" on page 48.

Non-residents and non-residents electing under section 217 - To calculate your non-refundable tax credits, multiply the amount on line 335 by 17%. If you are not claiming charitable donations or government, cultural, or ecological gifts, enter the amount from line 338 on line 350. Complete Schedule A, Statement of World Income, and Schedule B, Allowable Amount of Non-Refundable Tax Credits, to determine your allowable amount of non-refundable tax credits. Then go to "Federal tax calculation" on page 48.

Line 349 - Donations and gifts

You can claim donations made by either you or your spouse. Enter your claim from the calculation on Schedule 9 and attach it to your return. For more information, or if you made any of the following donations, see the pamphlet called Gifts and Income Tax:

• 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.

Note
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.

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 - Attach to your return your official receipts, showing either your name or your spouse'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 1999. If so, attach a note indicating the return with which you submitted the receipt.

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)

Add up all of the donations made in 1999 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.

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 of your return.

Tax Tip
You do not have to claim on your 1999 return the donations you made in 1999. Your credit is 17% of the first $200 of the donations and gifts you claim, and 29% of the balance. Therefore, it may be more beneficial for you not to claim them for 1999, but to carry them forward and claim them on your return for one of the next five years. Remember to claim them only once.

Qualified donees

Generally, you can claim only amounts you gave to Canadian registered charities and other qualified donees. For a list of the types of donees that qualify, get the pamphlet called Gifts and Income Tax.

Cultural and ecological gifts (line 342)

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 1999, and carry forward any unused part for up to five years. For information about the kinds of property to claim, see the pamphlet called Gifts and Income Tax.