Subdivision d: other sources of income:
Alimony and maintenance:
Other inclusions:
Pension reform:
8301: Pension adjustment:
RRSP deduction limit:
146(1): Earned income is income from employment (ignoring RPP contributions), self-employment, rental income, authors'/inventors'
royalties, alimony, net research grants.
RRSPs:
146.01: Home buyers plan
RRSP maturity:
Death of annuitant:
Transfers:
Do exercises 1,2,3 and problems 1,2a,2b.
Other deductions in computing income (subdivision e):
.
62: Moving expenses incurred
Do exercise 4 and problem 3.
63: Child care expenses:
Higher income spouse limited to lessor of:
Lower income spouse gets lessor of (a), (b), and (c) (computed using her earned income) less what higher income spouse claims.
Do exercise 5 and problem 4.
64: Attendant care expenses:
64.1: "Factual" residents:
Do problems 5, 6
56(1)(a):
(i)(A) OAS [The March 1996 budget proposes that OAS, GIS, and the pension and age tax credits be replaced by refundable tax credits in 2001.]
(i)(B) CPP/QPP
(iii) death benefit (248(1))
(iv) UIC
(ii) retiring allowance (248(1)):
Receipts taxable under 56(1)(b) and (c); see also 56.1.
Payments deductible under 60(b) and (c); see also 60.1.
Periodic allowance for "spouse" and/or "child[ren]".
Living apart when payment made and for rest of year.
Pursuant to written agreement or court decision.
[The March 1996 budget proposes that the above provisions not apply to child support paid pursuant to an agreement made after 30 April 1997.]
56(1)(l): Legal costs awarded that would be deductible under 60(o) re appealing an ITA assessment.
56(1)(m): National Training Act allowance.
56(1)(n): Scholarships and bursaries - $500.
56(1)(o): Net research grants.
56(1)(u): Social assistance.
(Deductible under Division C.)
56(1)(v): WCB.
(Deductible under Division C.)
Maximum contributable (by employer and employee combined):
(Can also contribute $1000 to RRSP)
(2,4,11): For DPSP and money purchase RPP:
amount contributed for the year.
(6): For defined benefit RPP:
9 * pension entitlement - $1000
E.g. If employee "earns" a pension entitlement of 2% * $40,000, then the pension adjustment is $6,200.
18% of last year's earned income,
Less last year's pension adjustment.
E.g. If earned income also $40,000, then RRSP contribution limited to 18% * $40,000 - $6,200 = $1,000.
If maximum not contributed (after 1990), can be carried forward.
204.1(2.1): Can over-contribute $2000, excess is taxed at 1%/month.
Can contribute to spousal RRSP:
146(8.3): but if spouse withdraws funds, then current and last two years' contributions included in income.
Permits up to $20,000 tax-free RRSP withdrawal:
Must repay in < 16 years, starting second calendar year after withdrawal.
Contributions to RRSP made within 90 days before withdrawal cannot be deducted, unless at least that amount remains after the withdrawal.
Must be before year in which annuitant turns 72. [70 per March 1996 budget]
Can withdraw funds (taxed in full).
Can buy fixed term or life annuity.
Can transfer to RRIFs.
Transfer to spouse or dependent child (or grandchild) is tax-free.
Otherwise, value of RRSP or RRIF is income in year of death.
60(j.1): Retiring allowance can be transferred to RRSP,
to a maximum of $2000 for each calendar year {prior to 1996, per 1995 budget} employed by that employer.
180.2: Claw back of OAS:
For taxpayers whose income exceeds $53,215 (indexed), their OAS is reduced by 15% of this excess.
The reduction is deductible under 60(w).
For example, if income before any clawback is $54,215, then the clawback is $150. Taxpayer pays Part I.2 tax of $150, and reduces income by $150.
To get at least 40 kilometres closer to new work location (or full time college).
Can claim only to extent of income from work or education assistance.
Must be in excess of any reimbursement.
62(3): List of eligible expenses
Must be incurred in the year by the taxpayer or a "supporting person".
Cannot be paid to related minor or a dependent.
a) actual amount incurred (but not more than $150/week/child under 7
b) $5000 * # of children under 7 at end of year or older with "impairment"
c) 2/3 of his
earned income (business income plus that under ITA 5, 6, 7, 56(1)(m,n,o)) [any income if both parents are full time students, per March 1996 budget];
d) $150 * # of children under 7 at end of year or older with "impairment"
Excel spreadsheet for calculating child care deduction: childcr.xls.
For "impaired" individual.
Paid to unrelated non-minor.
Limited to 2/3 of earned income.
Limited to $5,000. [The February 1997 budget proposed to remove this limit.]
I.e. those resident in Canada for tax purposes.
Eligible for moving, child care, and attendant expenses, even if references to "in Canada" not met.
9.305 Overhead Index.
9.305 HomePage