Net income

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 1998 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 1999 registered retirement savings plan (RRSP) deduction limit, which we will show on your Notice of Assessment for 1998. See line 208 for details.

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

Note
If you live in Canada and you participated in a foreign pension plan in 1998, you may have to enter an amount on this line. For details, contact us.

Line 207 - Registered pension plan (RPP) deduction

Enter the total of all deductible amounts shown in box 20 of your T4 slips, in box 32 of your T4A slips, or on your union or RPP receipts. Generally, you cannot claim contributions to pension plans in foreign countries.

You can deduct the total amount unless it is more than $3,500 and your information slip shows a past-service amount. In that case, or if you contributed to an RPP in a previous year and could not deduct part of the amount, get the guide called RRSPs and Other Registered Plans for Retirement to find out how much you can deduct.

Generally, you have to start receiving a pension from your RPP by the end of the year you turn 69. However, if, before March 6, 1996, your RPP already provided a specific starting date for your pension benefits, that date will remain in effect.

Receipts - With the exception of your T4 and T4A slips, do not include your receipts with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, you have to keep them in case we ask to see them.

Line 208 - Registered retirement savings plan (RRSP) deduction

This section gives general information on RRSPs. If you need more information after reading this section, get the guide called RRSPs and Other Registered Plans for Retirement. See "Schedule 7, RRSP Contributions, Transfers, and Designations of Repayments Under the Home Buyers' Plan" on page 25 to find out if you have to complete this schedule.

Note
Neither you nor your spouse can contribute to your RRSP after the end of the year you turn 69. Therefore, you may no longer be able to contribute to your own RRSP, even though you still have an RRSP deduction limit that you have not used. If so, you can still contribute to an RRSP for your spouse (and deduct the contributions) as long as your spouse's age allows.

If an RRSP annuity contract you purchased before March 6, 1996, already specifies the amount, frequency, and specific starting date of payments from your RRSP, that date will remain in effect.

Receipts - Attach to your paper return official receipts for all amounts you contributed from March 3, 1998, to March 1, 1999, including those you are not deducting on your 1998 return and those you are designating as Home Buyers' Plan repayments. See "Line 4 (line 246) - RRSP contributions made from January 1, 1998, to March 1, 1999, you are designating as your HBP repayment" on page 26. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider, and keep them in case we ask to see them.

We will accept a photocopy of a receipt only if the issuer certifies that it is a true copy. If you contributed to your spouse's plan, the receipt has to show your name as the contributor and your spouse's name as the annuitant.

Also attach Schedule 7 if you have to complete it. See "Schedule 7, RRSP Contributions, Transfers, and Designations of Repayments Under the Home Buyers' Plan" on page 25.

You may have made contributions from January 1, 1998, to March 2, 1998, that you did not deduct on your 1997 return. If you did not attach the receipts and a properly completed Schedule 7 to your 1997 paper return, see "Line 1 - Undeducted RRSP contributions from your 1997 Notice of Assessment or Notice of Reassessment" on page 25.

Under proposed changes, you may be able to withdraw funds after 1998 from your RRSP tax free if you or your spouse participates in continuing education or adult training programs. For more information, get the guide called Lifelong Learning Plan (LLP).

You also may be able to withdraw funds under the Home Buyers' Plan after 1998 to buy or build a home that is more accessible by a disabled person, either yourself or a relative. For details, get the guide called Home Buyers' Plan (HBP) - For 1999 Participants.

Maximum you can deduct

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

• your "1998 RRSP deduction limit" plus income eligible for transfer that you received in 1998 and transferred to your RRSP on or before March 1, 1999, (see "Transfers" later in this section); or
• the total of your RRSP contributions made from March 3, 1998, to March 1, 1999, plus the undeducted RRSP contributions shown on your 1997 Notice of Assessment or Notice of Reassessment.

Note
If you lived or helped out in certain areas of eastern Canada during the ice storm in January of 1998, you were allowed to deduct, on your 1997 return, contributions made to your or your spouse's RRSPs from March 3, 1998, to March 31, 1998. Do not claim for 1998 any amounts you already claimed for 1997.

Your RRSP contributions

This includes amounts you contributed to your own RRSP or an RRSP for your spouse based on your "1998 RRSP deduction limit." They also include transfers and amounts you are designating as Home Buyers' Plan (HBP) repayments. For more information about these subjects, see later in this section.

Note
Your RRSP contributions do not include the following amounts:

• Any RRSP contribution you made on or after March 3, 1998, that was refunded to you or your spouse in 1998 because it was an undeducted contribution. Report the refund on line 129 of your 1998 return. If you have Form T3012A, Tax Deduction Waiver on the Refund of Your Undeducted RRSP Contributions, that we have approved for that amount, attach it to your paper return and claim a deduction on line 232. Otherwise, attach a completed Form T746, Calculating Your Deduction for Refund of Undeducted or Excess RRSP Contributions, to find out if you can claim this deduction.
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse less than 90 days before you or your spouse withdrew funds from that RRSP under the Home Buyers' Plan. For more details, get the publication called Home Buyers' Plan (HBP) for the year you made your withdrawal.
• Any payments directly transferred to your own RRSP for which you did not receive an information 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 1998 return, and deducting on line 232. You can complete Form T1043, Calculating Your Deduction to Offset RRSP or RRIF Income if an Excess Amount from an RPP Has Been Transferred to an RRSP or a RRIF, to calculate the deductible amount.

Transfers

You may have received certain types of income and reported them on line 115, 129, or 130 of your 1998 return. If you contributed any of these amounts to your own RRSP on or before March 1, 1999, you can deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your "1998 RRSP deduction limit." Include the amounts you are transferring on lines 240 and 245 of Schedule 7.

For example, if you received a retiring allowance in 1998, 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.

Under proposed changes, you no longer have to consider any amounts you contribute to your or your spouse's RRSP when finding out if you have to pay minimum tax.

Overcontributions - If you contribute to an RRSP more than you can deduct, you may have to pay a special tax.

The guide called RRSPs and Other Registered Plans for Retirement gives more details on contributions, deductions, transfers, and overcontributions.

1998 RRSP deduction limit

We will show your 1998 RRSP deduction limit on your latest Notice of Assessment or Notice of Reassessment for 1997, or on Form T1028, Your RRSP Deduction Limit Statement for 1998.

If you do not have your notice or Form T1028, you can find out your limit for 1998 by calling our automated T.I.P.S. (RRSP) service, or by contacting us. See the T.I.P.S. information on page 7.

If you would like to calculate your 1998 RRSP deduction limit, get the guide calledRRSPs and Other Registered Plans for Retirement.

Note
You can carry forward the part of your RRSP deduction limit that you do not use. The amount you can carry forward is called your unused RRSP deduction room. Your RRSP deduction limit includes any unused RRSP deduction room accumulated after 1990, which you can carry forward indefinitely.

You may have had earned income in a previous year, but not 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.

Schedule 7, RRSP Contributions, Transfers, and Designations of Repayments Under the Home Buyers' Plan

You have to complete this schedule and attach it to your paper return if any of the following applies. You:

• will not be claiming on your 1998 return all of the amounts you contributed to your own RRSP or your spouse's RRSP from March 3, 1998, to March 1, 1999;
• claimed a deduction on line 208 for eligible income you reported on line 115, 129, or 130 of your return, and transferred to your RRSP; or
• want to designate all or part of your RRSP contributions as a 1998 Home Buyers' Plan (HBP) repayment.

There is an example of how to complete Schedule 7 on page 26. Complete this schedule to allow us to verify any claim for undeducted RRSP contributions on your future returns. This information will also enable us to tell you, on your Notice of Assessment or Reassessment for 1998, your undeducted RRSP contributions available for you to deduct on your 1999 return.

You will find instructions on the schedule about how to complete lines 1 to 7. You will find more information below about lines 1, 2, and 4.

Line 1 - Undeducted RRSP contributions from your 1997 Notice of Assessment or Notice of Reassessment

This is the total of all contributions to your own RRSP or to an RRSP for your spouse that you made after 1990 that you showed on a previous Schedule 7, but did not deduct on any previous return.

If you do not have your 1997 Notice of Assessment or Notice of Reassessment, you can find out if you have undeducted RRSP contributions for 1997 by calling our automated T.I.P.S. (RRSP) service. See the T.I.P.S. information on page 7.

Note
If you made RRSP contributions from March 2, 1997, to March 2, 1998, that you did not deduct on your 1997 return, you should have filed a completed Schedule 7 with your 1997 paper return. If you did not, you should submit a completed copy of a 1997 Schedule 7 to your tax centre, but not with your 1998 return. See "How do you change a return?" on page 13 for details. However, if either of the following applies, contact us:

• You made a contribution from January 1, 1991, to March 1, 1995, and you did not show it on Schedule 7 for 1994.
• You made a contribution from March 2, 1995, to March 1, 1997, and you did not show it on Schedule 7 for 1995 or 1996.

Line 2 (line 245) - RRSP contributions made from March 3, 1998, to March 1, 1999

Be sure that this line includes all eligible amounts you reported on lines 115, 129, or 130 of your 1998 return and contributed to your own RRSP on or before March 1, 1999. Enter this amount on line 7 (line 240) as well. See "Transfers" on page 25. Do not include any amounts listed in the note under "Your RRSP contributions" on page 24.

Also include on this line any contributions you made from January 1, 1999, to March 1, 1999, that you are not deducting on your 1998 return. Otherwise, we may reduce or disallow any claim for these contributions you may make on your return for a future year.

Line 4 (line 246) - RRSP contributions made from January 1, 1998, to March 1, 1999, you are designating as your HBP repayment

If you withdrew funds from your RRSP under the Home Buyers' Plan (HBP) before 1997, you should have received a Home Buyers' Plan - Statement of Account from us in the fall of 1998, indicating the amount of your annual repayment for 1998. You have to make this repayment by contributing to your own RRSP from January 1, 1998, to March 1, 1999, and designating it using line 4 (line 246) of Schedule 7. Do not make the repayment to us. Your statement also confirmed the total amount you have repaid to date.

Enter on this line the total of the RRSP contributions you want to designate as repayments under the HBP for 1998. Do this only if you did not deduct them or designate them as repayments on your 1997 return, and they were not refunded to you. You cannot deduct on your return any RRSP contribution you designate as an HBP repayment on Schedule 7.

If you withdrew funds under the HBP in 1997, you have to make your first annual repayment to your RRSP after 1998 and before March 1, 2000. If you withdrew funds from your RRSP in 1998, you have to make your first annual repayment after 1999 and before March 2, 2001.

Note
If you have not repaid the amount indicated on your statement of account on or before March 1, 1999, you have to include an amount in income. See line 129 for details.

For more information, including the rules that apply when the person who made the withdrawal dies, turns 69, or becomes a non-resident, get the publication called Home Buyers' Plan (HBP) for the year of the withdrawal.

Example

Kristen contributed $200 to her RRSP each month from April 1, 1998, to March 1, 1999, for a total of $2,400. Her 1997 Notice of Assessment showed that she had $400 in undeducted RRSP contributions. This means that Kristen's RRSP contributions available to deduct for 1998 are $2,800. However, her 1997 Notice of Assessment showed that her 1998 RRSP deduction limit was $2,200, so that is the most she can deduct for 1998. She did not transfer any eligible income to her RRSP, and she did not designate a Home Buyers' Plan repayment for 1998. Kristen completes her Schedule 7 as follows:

Undeducted RRSP contributions from your 1997 Notice of Assessment or Notice of Reassessment							400	00		1
RRSP contributions made from March 3, 1998, to March 1, 1999					245	+	2,400	00		2
Add lines 1 and 2						=	2,800	00		3
RRSP contributions made from January 1, 1998, to March 1, 1999, you are designating as your HBP repayment (do not include any amounts that you will be including on lines 6 and 7 below)					246	-	0	00		4
RRSP contributions available to deduct for 1998 (line 3 minus line 4)						=	2,800	00		5
Deduction you are claiming for 1998 for your RRSP contributions that are based on your 1998 RRSP deduction limit			2,200	00	6
Eligible income reported on line 115, 129, or 130 that you transferred to your RRSP	240	+	0	00	7
Add lines 6 and 7 (the total cannot exceed the amount on line 5) Enter this total on line 208 of your return.		=	2,200	00	>	-	2,200	00		8
Undeducted RRSP contributions available to carry forward to 1999: Line 5 minus line 8						=	600	00		9

Kristen enters $2,200 on line 208 of her 1998 return, and attaches all $2,400 worth of her receipts and the completed Schedule 7 to her paper return. She also has undeducted RRSP contributions of $600 that will show on her 1998 Notice of Assessment.

Note
When Kristen completes her 1999 return, she will enter $600 on line 1 of the Schedule 7 that she will file with that return, in order to claim a deduction for those contributions.

Line 209 - Saskatchewan Pension Plan deduction

You may be able to deduct 1998 contributions to the Saskatchewan Pension Plan (SPP). You can deduct whichever of the following three amounts is least:

• $600;
• the total amount you contributed (or your spouse contributed for you) to the SPP from January 1, 1998, to March 1, 1999, (not including any contributions that you deducted on your 1997 return); or
• your 1998 RRSP deduction limit minus your RRSP deduction from line 208 (not including transfers to your RRSP).

Receipts - Attach your receipts to your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider, and keep them in case we ask to see them.

Line 212 - Annual union, professional, or like dues

Enter the total of the following amounts:

• annual membership dues you paid to a trade union or an association of public servants;
• dues you paid to a professions board that you had to pay under provincial law;
• professional or malpractice liability insurance premiums or professional membership dues you paid if you had to pay them to keep a professional status recognized by law; and
• dues you paid to a parity or advisory committee (or similar body) that you had to pay under provincial law.

Annual membership dues do not include initiation fees, 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 goods and services tax/harmonized sales tax (GST/HST) you paid.

Tax Tip
You may be eligible for a rebate of any GST/HST you paid as part of your dues. See line 457 for details.

Receipts - With the exception of your T4 slips, do not include your receipts with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, keep them in case we ask to see them.

Line 214 - Child care expenses

Generally, you can claim expenses you or your spouse paid for someone to look after your child, so you (or your spouse) could earn income, go to school, or conduct research in 1998. The child must, at some time in 1998, have either been under 16 or had a mental or physical infirmity.

Under proposed changes, the maximum amount you can claim for each child has increased. In addition, expenses paid to allow you or your spouse to go to school part-time can be claimed.

For more information, and to make your claim, get Form T778, Child Care Expenses Deduction for 1998. However, if you claimed child care expenses on your 1997 return, the package we mailed to you should include this form.

Tax Tip
You may be able to claim payments you made to a boarding school, sports school, or camp. For details, get Form T778.

Receipts - Attach a completed Form T778, but not your receipts, to your paper return. If you are using EFILE (see "Filing your return" on page 11) show your receipts to your EFILE service provider. In either case, keep them in case we ask to see them.

Line 215 - Attendant care expenses

If you can claim the disability amount (line 316) you can claim expenses you paid for personal attendant care that allowed you 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, call our T.I.P.S. (Info-Tax) service. See the T.I.P.S. information on page 7. You also can get the guide called Information Concerning People with Disabilities, which contains Form T929.

Receipts - Do not include your receipts or Form T929 with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, 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. For instance, such a loss can occur 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 the guide called Capital Gains.

If you have a tax shelter, see "Tax shelters" on page 16.

Line 219 - Moving expenses

Generally, if you moved at least 40 kilometres in 1998 to start a job or a business, or to study full-time at an educational institution that offers post-secondary courses, you can deduct your moving expenses from income you earned at the new location. For more information, get Form T1-M, Claim for Moving Expenses.

How to claim

Complete Form T1-M to find out what you can deduct.

Note
If you moved in 1997 but could not claim all your moving expenses in that year, you can claim the remaining expenses against income you earned in 1998 at the new location.

Receipts - Do not include your receipts or Form T1-M with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, keep them in case we ask to see them.

Line 220 - Support payments made

Enter on line 230 the total spousal and child support you paid in 1998. Enter on line 220 the deductible amount. For more information, including rules that apply to child support agreements and court orders dated May 1, 1997, or later, get the pamphlet called Support Payments.

Receipts - Do not include your receipts or cancelled cheques, or your court order or written agreement with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, 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 are using 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.

Under proposed changes, you may be able to claim an amount for the interest portion of student loan repayments. For more information, see line 319.

You cannot deduct on line 221 any 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 the guide called Capital Gains.

Note
You cannot deduct the interest you paid on money you borrowed to contribute to a registered retirement savings plan or a registered education savings plan.

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

Example

Michael bought a $1,000 CSB through payroll deductions. The total amount deducted from his pay for the bond was $1,013.23 (composed of the $1,000 face value of the bond plus $13.23 he paid in interest). Michael can claim the $13.23 on line 221.

Policy loan interest - To claim interest you paid during 1998 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, 1999.

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 explained at line 121 in this guide. If we then reassessed your return and you repaid some of the refund interest in 1998, you can deduct the amount you repaid.

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. Do not include your receipts or Form T2210 with your paper return. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, keep them in case we ask to see them.

If you have a tax shelter, see "Tax shelters" on page 16.

Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 1998, but did not participate actively, you can deduct your expenses on this line. If you participated actively, follow the instructions at line 135.

How to claim

• Complete Part V of Schedule 4 using the information that the principals of the venture give you.
• Attach to your paper return either a T5013 slip, Statement of Partnership Income, or a statement that gives details of the deduction.

The statement has to identify you as a participant in the venture, show your allocation (the number of units you own, the percentage assigned to you, or the ratio of your units to those of the whole partnership), and give the name and address of the fund.

If you have a tax shelter, see "Tax shelters" on page 16.

Renounced resource expenses - If you received a T101 or T102 slip, use the instructions on the back to calculate your deduction. Attach to your paper return your slip and a note showing how you calculated your deduction.

Depletion allowances - Claim these amounts on line 232.

If you have any questions about these expenses, contact the Business Enquiries section of your tax services office. For the address and telephone number, see the listings under "Revenue Canada" in the Government of Canada section of your telephone book.

Line 229 - Other employment expenses

You can deduct certain expenses (including any goods and services tax/harmonized sales tax (GST/HST)) you paid to earn employment income. You can claim the expenses only if your employment contract required you to pay them, and either you did not receive an allowance for the expenses, or the allowance you received is included in your income.

Note
Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as clothes and tools.

Complete and attach Form T777, Statement of Employment Expenses, to give us details of your expenses and to calculate how much you can deduct. The guide called Employment Expenses contains Form T777 and other forms you may need. The guide also explains the limits and conditions that apply when you claim these expenses.

Emergency volunteers - Under proposed changes, you may be able to deduct up to $1,000 against the income you receive from a government, municipality, or public authority for certain volunteer work. This applies if you were a volunteer ambulance technician, fire fighter, or search, rescue, or other emergency worker. The deduction applies to the total amount you receive from each such public body, but it cannot be claimed if you were employed by that body (other than as a volunteer) for the same or similar duties. The deductible amount is shown in box 76 of your T4 slip.

Repayment of salary or wages - You can deduct salary or wages you included in income for 1998 or a previous year, if you repaid them in 1998. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment.

Legal fees - You can deduct legal fees you paid to collect or establish a right to salary or wages. However, you have to reduce your claim by any amount awarded to you, or any reimbursement you received for your legal expenses.

Receipts - Do not include your receipts or forms with your paper return, except for Form T777. If you are using EFILE (see "Filing your return" on page 11) show them to your EFILE service provider. In either case, keep them in case we ask to see them.

Tax Tip
You may be eligible for a rebate of any GST/HST you paid as part of your expenses. See line 457 for details.

Line 232 - Other deductions

Use this line to claim allowable amounts not deducted anywhere else on this return. For details about amounts not listed, call our T.I.P.S. (Info-Tax) service. See the T.I.P.S. information on page 7.

In the space to the left of line 232, identify the deduction you are claiming. If you have more than one amount, or you want to explain your deduction more fully, attach a note to your paper return.

If you have a tax shelter, see "Tax shelters" on page 16.

Income amounts paid back

In 1998, you may have paid back amounts that you included in income for 1998 or a previous year. If so, you may be able to deduct them on your 1998 return. Attach to your paper return receipts or other documents showing the amounts you paid back. However, if you paid back employment income, see "Repayment of salary or wages" under line 229. If you paid back income tax refund interest, see "Refund interest" under line 221.

EI benefits - You may have received more benefits than you should have, and already paid them back to Human Resources Development Canada (HRDC). For example:

• HRDC may have reduced your EI benefits after discovering the mistake. In this case, your T4E slip will show only the net amount you received, so you cannot claim a deduction.
• You may have repaid HRDC. If so, box 30 of your T4E slip will show the amount you paid back. Include this amount on line 232. This is not the same as repaying a social benefit as explained at line 235.

Legal fees

You can deduct any of the following:

• fees you paid for advice or assistance in objecting to or appealing an assessment or decision under the Income Tax Act, the Unemployment Insurance Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan, plus any related accounting fees (although you have to reduce your claim by any award or reimbursements you received for such expenses);
• fees you incurred to collect late support payments that you will include in your income or non-taxable child support payments, or that you incurred to defend your right to such payments;
• fees you incurred to get a court order when suing your spouse or former spouse, or the natural parent of your child, for maintenance payments (including non-taxable child support payments) in a Family Court; and
• fees you paid to collect (or establish a right to) a retiring allowance or pension benefit. However, you can only claim up to the amount of retiring allowance or pension income you received in the year, minus any part of these amounts transferred to a registered retirement savings plan or registered pension plan. You also have to reduce your claim by any award or reimbursement you got for these expenses. You can carry forward for up to seven years legal fees that you cannot claim in the year.

You cannot claim legal costs to obtain a separation or divorce, to establish or revise a right to support payments, or to establish custody of a child. For details of other legal fees you may be able to deduct, get Interpretation Bulletin IT-99, Legal and Accounting Fees.

Line 235 - Social benefits repayment

Employment Insurance (EI) benefits

You may have to repay part of the EI benefits (line 119) you received in 1998 if one of the following applies:

• There is an amount in box 15 of your T4E slip, the repayment rate in box 7 is 30%, and your net income before adjustments (line 234) is more than $48,750.
• There is an amount in box 16 of your T4E slip, and your net income before adjustments (line 234) is more than $48,750.
• There is an amount in box 15 of your T4E slip, the repayment rate in box 7 is more than 30%, and your net income before adjustments (line 234) is more than $39,000.

Complete one or both of the charts included with your T4E slip to calculate how much of your EI benefits you have to repay. If you also have to repay Old Age Security (OAS) pension benefits or net federal supplements that you received (see the next section) enter, on lines 7 and 13 of the chart on page 30, the EI benefits that you have to repay.

Old Age Security (OAS) pension benefits and net federal supplements

If you received OAS pension (line 113) or net federal supplements (line 146) and your net income before adjustments (line 234) is more than $53,215, you may have to repay all or a part of these benefits. Complete the chart on this page to calculate how much you have to repay.

Note
Recovery tax may have been withheld from your monthly OAS amount if you had an OAS repayment for 1997. The amount deducted is included in box 22 of your 1998 T4A(OAS) slip. Claim it on line 437 to reduce the amount of tax you owe when you file your 1998 return. Similarly, if you have an OAS repayment for 1998, tax may be withheld starting with your July 1999 OAS payment. For more details, contact us.

OAS pension and net federal supplements repayment

OAS pension from line113	$		1
Net federal supplements from line146	+		2
Line 1 plus line 2	$		3
OAS pension you paid back in 1998 and claimed on line232	-		4
Line 3 minus line 4 (if negative, enter "0")	$		5
Net income before adjustments from line234	$		6
EI benefits repayment from line10 of chart1 or line14 of chart2 included with your T4Eslip (if any)	-		7
Line 6 minus line7	$		8
Base amount	-	53,215.00	9
Line 8 minus line9 (if negative, enter "0")			10
		× 15%
Multiply line10 by 15% and enter the result on this line	$		11
OAS pension and net federal supplements repayment: Enter either line5 or line 11, whichever is less.	$		12
Amount from line7 above (if any)	+		13
Total social benefits repayment payable (line 12 plus line 13)	$		14
Enter the amount from line 14 on lines 235 and 422 of your return.