Tax Tips

  • If you paid foreign taxes on foreign income you received, do not reduce the amount you report by the amount of tax the foreign country withheld. However, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes.

  • Your contributions to the Canada Pension Plan or Quebec Pension Plan (box 16 or 17 of your T4 slips and any amount on line 421) determine the amount of benefits you will receive under either of these plans. If there are no contributions in box 16 or 17 of your T4 slips, or if you have any questions about the amount of your contributions, contact your employer.

  • You can claim a deduction on line 256 for the part of your foreign pension income that is tax-free in Canada because of a tax treaty.

  • If you have to report your pension, annuity and RRIF payments, you may be able to claim the pension income amount.

  • In some cases, it may be better for you to report all the taxable dividends your spouse or common-law partner received from taxable Canadian corporations. You can do this only if, by including the dividends in your income, you will be able to claim or increase your claim for the spouse or common-law partner amount.

  • You may be able to claim a deduction for your capital gains.

  • You may be able to transfer part or all of your retiring allowances to your RRSP.

  • You may be eligible for a rebate of any GST/HST you paid as part of your dues.

  • You may be able to claim payments you made to a boarding school, sports school, or camp.

  • You may be eligible for a rebate of any GST/HST you paid as part of your expenses.

  • You may be able to transfer all or part of your age amount to your spouse or common-law partner.

  • If the dependant has an impairment, see Guide RC4064, Medical and Disability-Related Information, for details about different amounts you may be able to claim.

  • You may be able to transfer all or part of your pension income amount to your spouse or common-law partner.

  • If you are transferring an amount to another person, do not transfer more than the person can use. That way, you can carry forward as much as possible to use in a future year.

  • There is a refundable tax credit for working individuals with low incomes and high medical expenses.

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

  • You may be able to claim a refund of your unused investment tax credit.

  • If you had an eligible spouse on December 31, of the current year, the one with the higher working income should claim the basic WITB (working income tax benefit).

  • Even if you cannot pay all of your balance owing right away, you should still file your return on time. Then you will not have to pay a penalty for filing your return after the due date.