 Guide to Preparing 2020 Personal Tax Returns
 What's new for 2020?
COVID-19 economic relief measures
Personal tax calendar (2021) Personal tax rates and tools
Filing tips for 2020 personal tax returns
Chapter 1 – The T1 return – Getting started
Chapter 2 – Total income
Chapter 3 – Net income deductions
Chapter 4 – Taxable income
 Chapter 5 – Federal non-refundable tax credits
Overview What's new for 2020? Claiming order Transfer of credits Applicable rate Indexation Provincial and territorial equivalents Non-residents Part-year residents Non-residents (including non-residents electing under section 216.1) Non-resident electing under section 217 Personal amounts and adoption expenses Line 30000 – Basic personal amount What's new for 2020? Indexation Non-residents Annotations Line 30100 – Age amount What's new for 2020? Eligibility Indexation Non-residents Annotations Line 30300 – Spouse or common-law partner amount What's new for 2020? Common-law partnership Same-sex couples Limitations Election to transfer dividend income to spouse Canada caregiver amount Indexation Transfer of credits Documentation Non-residents Annotations Line 30400 – Amount for an eligible dependant What's new for 2020? Limitations Eligible dependant Conditions for application Canada caregiver amount Indexation Documentation Non-residents Annotations Line 30425 – Canada caregiver amount for spouse or common-law partner, or eligible dependant age 18 or older What's new for 2020? Calculating the Canada caregiver amount Higher amount Lower amount Top-up amount Limitations Indexation Documentation Non-residents Annotations Line 30450 – Canada caregiver amount for other infirm dependants age 18 or older What's new for 2020? Dependant Limitations Indexation Documentation Non-residents Annotations Line 30500 – Canada caregiver amount for infirm children under 18 years of age What's new for 2020? Who may claim? Where child resides together with parents Where child does not reside together with more than one parent Limitations Documentation to claim the credit Indexation Transfer of the amount Non-residents Annotations Line 31300 – Adoption expenses What's new for 2020? Who may claim? When to claim? Eligible adoption expenses Deduction limits Indexation Documentation Non-residents Annotations Disability amounts Line 31600 – Disability amount (for self) What's new for 2020? Eligibility requirements Prolonged impairment Marked restriction Equivalent to marked restriction Basic activities of daily living Special 2020 payment in response to COVID-19 Supplement for persons under 18 Limitation Transfer Documentation Registered disability savings plans Non-residents Annotations Line 31800 – Disability amount transferred from a dependant What's new for 2020? Who may claim? Limitations Documentation Non-residents Annotations Medical expenses What's new for 2020? Line 33099 – Medical expenses for self, spouse or common-law partner, and dependent children born in 2003 or later Interactions with disability-related tax measures Interaction with lump-sum payments received in lieu of health or dental coverage Indexation Non-residents Line 33199 – Allowable amount of medical expenses for other dependants Interactions with disability-related measures Indexation Non-residents Allowable medical expenses Attendant care and care in an establishment Nursing home care School or institution care Remuneration for care Full-time attendant care at home Group home care Full-time attendant care outside a self-contained domestic establishment Attendant care not claimed under any of the above provisions Reproductive technologies Bone marrow or organ transplant – Related costs Specially trained animals and related expenses Transportation services and travel expenses Annotations Student-related credits Line 31900 – Interest paid on student loans Qualifying loans Who may claim? Five-year carryover Documentation Non-residents Annotations Line 32300 – Tuition, education, and textbook amounts What's new for 2020? Tuition amount Overview What qualifies as tuition? Ancillary fees Statutory exclusions Eligible and non-eligible fees Occupational, trade, or professional examination fees Timing of payment Criteria for tuition credit Canadian educational institution Foreign university Commuters to the United States Education amount (2016 and earlier taxation years) Overview Qualifying and specified educational programs Designated educational institution Textbook amount (2016 and earlier taxation years) Transfer and carryforward of unused tuition amount Documentation Requirement to issue forms Rules where financial assistance provided Deemed residents Non-residents Annotations Line 32400 – Tuition amount transferred from a child What's new for 2020? Non-residents Annotations Donations and gifts Line 34900 – Donations and gifts What's new for 2020? Gifts Eligible amount of gift Amount of advantage Nominal advantage Determination of intention to give Deemed fair market value for purposes of calculating the eligible amount of a gift Gifts in kind Donations of publicly listed securities Donations of publicly listed flow-through shares Donations of recently purchased property Tax shelter gifting arrangements Returned properties Gifts of cultural property Ecological gifts Foreign gifts Gifts by commuters Documentation Non-residents Annotations Federal dividend tax credit Line 40425 – Federal dividend tax credit Documentation Non-residents Annotations Other non-refundable credits Line 30800 – Base CPP or QPP contributions through employment income What's new for 2020? Overcontributions Optional contributions Non-residents Annotations Line 31000 – Base CPP or QPP contributions on self-employment and other earnings What's new for 2020? Optional CPP and QPP contributions Non-residents Annotations Line 31200 – Employment insurance premiums through employment What's new for 2020? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 31205 – Provincial parental insurance plan (PPIP) premiums paid What's new for 2020? Who may claim an amount on Line 31205? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 31210 – PPIP premiums payable on employment income What's new for 2020? Who may claim an amount on Line 31210? Maximum claimable Calculation of employee's QPIP premiums Non-residents Annotations Line 31215 – PPIP premiums payable on self-employment income What's new for 2020? Who may claim an amount on Line 31215? Maximum claimable Calculation of self-employed individual's QPIP premiums Non-residents Annotations Line 31217 – Employment insurance premiums on self-employment and other eligible earnings What's new for 2020? Canadian residents who are non-residents of Quebec on December 31 Canadian residents who are residents of Quebec on December 31 Non-residents Annotations Line 31220 – Volunteer firefighters' amount Amount of the tax credit Eligible volunteer firefighting services Eligible search and rescue volunteer services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 31240 – Search and rescue volunteers' amount Amount of the tax credit Eligible search and rescue volunteer services Eligible volunteer firefighting services Documentation Interaction between the tax credit and the tax exemption Non-residents Annotations Line 31260 – Canada employment amount What's new for 2020? Indexation Non-residents Annotations Line 31270 – Home buyers' amount Who may claim? Qualifying home Non-residents Annotations Line 31285 – Home accessibility tax credit Who may claim? Qualifying individual Eligible individual Eligible dwelling Qualifying expenditures and qualifying renovations Expenses incurred by a condominium corporation, trust, etc. Interaction with medical expenses tax credit Documentation Non-residents Annotations Line 31350 – Digital news subscription expenses (new for 2020) Who may claim? Digital news subscription Qualifying subscription expense Qualified Canadian journalism organization Non-residents Annotations Line 31400 – Pension income amount Eligible pension income Foreign pensions Elected split-pension income Computation Non-residents Annotations Line 32600 – Amounts transferred from a spouse or common-law partner Non-residents Annotations Line 40427 – Minimum tax carryover Annotations Line 40500 – Federal foreign tax credit Foreign non-business-income tax credit Foreign-source income Tax-exempt income Foreign business-income tax credit Business-income tax Foreign-source business income Administration Non-residents Annotations Lines 40900 and 41000 – Federal political contribution tax credit Annotations Line 41200 – Investment tax credit What's new for 2020? Expenditures qualifying for an ITC Qualified property Apprenticeship expenditures Eligible child care space expenditures Qualified expenditures in respect of SR&ED Renounced eligible exploration expenses Computing the ITC Claiming the ITC Carryover period for ITCs Claiming a refund Reduction of the capital cost of property Recapture of ITCs Non-residents Annotations Lines 41300 and 41400 – Labour-sponsored funds tax credit Non-residents Annotations Line 41450 – Section 217 tax adjustment Annotations Federal logging tax credit Income for the year from logging operations Reporting Non-residents Annotations Chapter 6 – Federal tax payable or refundable
Chapter 7 – Provincial and territorial tax
Chapter 8 – Quebec provincial income tax
Chapter 9 – Special situations and tax planning
Chapter 10 – Taxation of immigrants, emigrants, and non-residents
Chapter 11 – Administration
Appendices
| 
