5008-PC Information for Residents of Saskatchewan

What’s new for Saskatchewan for 2018?

The personal income tax rates have been reduced for all taxable income levels.

The charitable donations rate, tax on split income rate, and excess EPSP rate have all been reduced.

The dividend tax credit rates for eligible and other than eligible dividends have changed.

The labour-sponsored venture capital tax credit rate has changed. The maximum credit that can be claimed by an individual has also changed.

Saskatchewan residents may be eligible to claim the new federal refundable credit for the climate action incentive. For more information, see Schedule 14, Climate Action Incentive.

The tuition and education tax credits have been discontinued.

Saskatchewan benefits for individuals and families

Saskatchewan low-income tax credit

This credit is a non-taxable amount paid to help Saskatchewan residents with low and modest incomes. This amount is combined with the quarterly payments of the federal GST/HST credit.

You do not need to apply for the GST/HST credit or the Saskatchewan low-income tax credit. The Canada Revenue Agency (CRA) will use the information from your return to determine your eligibility and tell you if you are entitled to receive the credit.

File your return

To make sure you get your payments on time, you (and your spouse or common-law partner) need to file your 2018 income tax and benefit return(s) by April 30, 2019. The CRA will use the information from your return(s) to calculate the payments you are entitled to get from this program.

The Saskatchewan low-income tax credit is fully funded by the Province of Saskatchewan. For more information about this program, go to Saskatchewan low‑income tax credit (SLITC) or call the CRA at 1-800-387-1193.

Completing your Saskatchewan form

You can download and print a copy of Form SK428, Saskatchewan Tax and Credits, to calculate your Saskatchewan tax and credits. Attach a completed copy of Form SK428 to your return.

Definitions

Spouse refers to a person to whom you are legally married.

Common-law partner refers to a person who is not your spouse but with whom you are in a conjugal relationship, and at least one of the following conditions applies:

• This person has been living with you in a conjugal relationship for at least 12 continuous months (including any period of time where you were separated for less than 90 days because of a breakdown in the relationship).
• This person is the parent of your child by birth or adoption.
• This person has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on them for support.

End of the year means any of the three following dates:

• December 31, 2018
• the date you left Canada if you emigrated in 2018
• the date of death for a person who died in 2018

Form SK428, Saskatchewan Tax and Credits

Complete Form SK428 if you were a resident of Saskatchewan at the end of the year.

If you were a non-resident of Canada in 2018, complete Form SK428 if one of the following applies:

• You earned income from employment in Saskatchewan.
• You received income from a business with a permanent establishment only in Saskatchewan.

Complete Form T2203, Provincial and Territorial Taxes for 2018 – Multiple Jurisdictions, instead of Form SK428 if each of the following applies:

• You had income from a business (including income you received as a limited or non-active partner).
• The business has a permanent establishment outside Saskatchewan.

Part A – Saskatchewan non-refundable tax credits

The eligibility criteria and rules for claiming most of the Saskatchewan non-refundable tax credits are the same as those for the federal non-refundable tax credits. However, the value and calculation of most Saskatchewan non-refundable tax credits are different from the corresponding federal credits.

Newcomers to Canada and emigrants

If you reduced your claim for the amounts on lines 300 to 307, 316, 318, 324, and 326 of your federal Schedule 1, you also need to reduce the corresponding provincial amounts on lines 5804 to 5820, 5840, 5844, 5848 and 5864 in the same manner. You may also have to reduce the amounts on lines 5821 and 5822.

Line 5812 – Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1 and your spouse’s or common-law partner’s net income (line 236 of their return, or the amount that it would be if they filed a return) is less than $17,672.

Line 5816 – Amount for an eligible dependant

You can claim this amount if the rules are met for claiming the amount on line 305 of federal Schedule 1 and your dependant’s net income (line 236 of their return, or the amount that it would be if they filed a return) is less than $17,672.

Line 5820 – Amount for infirm dependants age 18 or older

You can claim up to $9,464 for each of your or your spouse’s or common-law partner’s dependent children or grandchildren only if that person had an impairment in physical or mental functions and was born in 2000 or earlier.

You can also claim an amount for more than one person if each one meets all of the following conditions:

• They were your (or your spouse’s or common-law partner’s) parent, grandparent, brother, sister, aunt, uncle, niece, or nephew.
• They were 18 years of age or older.
• They were dependent on you (or on you and others) because of an impairment in physical or mental functions.
• They were a resident of Canada at any time in the year.

You can claim an amount only if the dependant’s net income (line 236 of their return, or the amount it would be if they filed a return) is less than $16,179.

If you had to make support payments for a child, you cannot claim an amount on line 5820 for that child unless each of the following conditions apply:

• You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
• You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.

If each of these conditions is met, you can claim either an amount on line 5820 or an amount on line 220 of your return, whichever is better for you.

How to claim this amount

Complete the calculation for line 5820 using Worksheet SK428. If you are claiming this amount for more than one dependant, enter the total amount on line 5820.

Claim 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 amount of your claim and the other person’s claim cannot be more than the maximum amount allowed for that dependant.

Line 5821 – Amount for dependent children born in 2000 or later

You can claim this amount if you lived in Saskatchewan at the end of the year and you had a dependent child for whom all of the following conditions apply:

• The child was less than 18 years of age at any time in 2018.
• The child lived with you at the end of the year (or on the date of death for a child who died in 2018).
• No one has received a special allowance under the Children’s Special Allowances Act for the child.

You cannot claim this credit if anyone made a claim for the child as an eligible dependant on line 5816 or as a spouse or common-law partner on line 5812.

If you have a spouse or common-law partner, only one of you can claim this credit. When both are eligible to make this claim, the person with the lower taxable income must make the initial claim. The other person may claim any unused amount by completing Schedule SK(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner, and attaching it with their return.

How to claim this amount

Complete the “Details of dependent children born in 2000 or later” chart on Form SK428.

Enter the number of dependent children you have who were born in 2000 or later beside box 6370 on Form SK428.

Claim $6,094 for each dependent child, and enter the total amount on line 5821.

Line 5822 – Senior supplementary amount

You can claim this amount if you were 65 years of age or older in 2018 and you lived in Saskatchewan at the end of the year. You can claim it regardless of your net income.

If you are completing a return for a person who died in 2018, you can claim this amount if the person was 65 years of age before the date of death and they lived in Saskatchewan on the date of death.

Line 5836 – Pension income amount

The amount you can claim on line 5836 is the amount on line 314 of your federal Schedule 1 or $1,000, whichever is less.

Line 5837 – Home buyers’ amount

You can claim an amount of $10,000 for the purchase of a qualifying home if the rules are met for claiming the amount on line 369 of federal Schedule 1. However, if you received a loan through the Graduate Retention Program First Home Plan, you may not claim the Saskatchewan home buyers’ amount.

A qualifying home must be registered in your and/or your spouse’s or common-law partner’s name with the Land Titles Registry and must be located in Saskatchewan.

The home buyers’ amount can be split between you and your spouse or common-law partner, but the combined total cannot be more than $10,000.

When more than one individual is entitled to the amount (for example, when two people jointly buy a home), the total of all amounts claimed cannot be more than $10,000.

Supporting documents
Do not send any supporting documents when you file your return. Keep them in case we ask to see them later.

Line 5840 – Caregiver amount

If, at any time in 2018, you (alone or with another person) kept a dwelling where you and one or more of your dependants lived, you may be able to claim up to $9,464 for each dependant.

Each dependant must have been one of the following:

• your (or your spouse’s or common-law partner’s) child or grandchild
• your (or your spouse’s or common-law partner’s) brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was a resident in Canada

Also, each dependant must meet all of the following conditions:

• They were 18 years of age or older when they lived with you.
• They had a net income in 2018 (line 236 of their return, or the amount it would be if they filed a return) of less than $25,628.
• They were dependent on you because of an impairment in physical or mental functions or they are your (or your spouse’s or common-law partner’s) parent or grandparent born in 1953 or earlier.

If you had to make support payments for a child, you cannot claim an amount on line 5840 for that child. However, you may be able to claim an amount for that child on line 5840 (in addition to any allowable amounts on lines 5816 and 5848) if each of the following applies:

• You were separated from your spouse or common-law partner for only part of 2018 because of a breakdown in your relationship.
• You do not claim any support amounts paid to your spouse or common-law partner on line 220 of your return.

If each of these conditions is met, you can claim either an amount on line 5840 or an amount on line 220 of your return, whichever is better for you.

How to claim this amount

Complete the calculation for line 5840 using Worksheet SK428. If you are claiming this amount for more than one dependant, enter the total amount on line 5840.

Claim 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 anyone (including you) can claim this amount for a dependant, no one can claim an amount on line 5820 for that dependant.

If anyone other than you claims an amount on line 5816 for a dependant, you cannot claim an amount on line 5840 for that dependant.

Line 5844 – Disability amount (for self)

You can claim this amount if you met the rules for claiming the amount on line 316 of federal Schedule 1.

If you were 18 years of age or older at the end of the year, enter $9,464 on line 5844.

If you were under 18 years of age at the end of the year, complete the calculation for line 5844 using Worksheet SK428.

Line 5848 – Disability amount transferred from a dependant

You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1.

Line 5856 – Your unused tuition and education amounts

Complete Schedule SK(S11), Provincial Tuition and Education Amounts.

For 2018 and later tax years, tuition and education amounts have been eliminated; however unused tuition and education amounts from 2017 and previous tax years can still be used and carried forward by the student to a future year.

Carrying forward amounts

Complete the “Carryforward of unused amount” section of Schedule SK(S11) to calculate the amount you can carry forward to a future year. This amount is the part of  your tuition and education amount that you do not need to use for the year.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule SK(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.

Line 5868 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 2001 or later

The medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2018, and must be expenses that were not claimed for 2017.

Line 5872 – Allowable amount of medical expenses for other dependants

You can claim medical expenses for other dependants in addition to the medical expenses claimed on line 5868.

The medical expenses you can claim on line 5872 are the same as those you can claim on line 331 of your federal Schedule 1. They have to cover the same 12-month period ending in 2018, and must be expenses that were not claimed for 2017.

Part C – Saskatchewan tax

Line 41 – Saskatchewan farm and small business capital gains tax credit

If you reported capital gains in 2018 from the disposition of qualified farm property or qualified small business corporation shares and you were a resident of Saskatchewan at the end of the year, you may qualify for this tax credit.

To claim this credit, complete Form T1237, Saskatchewan Farm and Small Business Capital Gains Tax Credit.

Enter, on line 41 of Form SK428, the amount from line 32 of Form T1237.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form T1237.

Line 43 – Saskatchewan tax on split income

If you need to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 3 of Form T1206, Tax on Split Income, to calculate the Saskatchewan tax that applies to this income and enter the amount on line 428 of your return.

For more information on tax on split income, see the Federal income tax and benefit guide.

Line 50 – Saskatchewan additional tax for minimum tax purposes

If you need to pay federal minimum tax as calculated on Form T691, Alternative Minimum Tax, complete the calculation on line 50 of Form SK428 to determine your Saskatchewan additional tax for minimum tax purposes.

For more information about minimum tax, see the Federal income tax and benefit guide.

Line 52 – Provincial foreign tax credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be able to claim a provincial foreign tax credit.

To claim this credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.

Enter on line 52 of Form SK428 the tax credit calculated on line 5 of Form T2036.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form T2036.

Lines 54 and 55 – Political contribution tax credit

You can claim this credit if, in 2018, you contributed to a registered Saskatchewan political party or to an independent candidate in a Saskatchewan provincial election.

Only claim amounts from your official receipts for 2018. Official receipts can be issued only for contributions of at least $25.

How to claim this credit

Enter the total of your official receipts for your Saskatchewan political contributions on line 54 of Form SK428 and calculate the amount to enter on line 55 as follows:

• If the total of your official receipts is more than $1,275, enter $650 on line 55 of Form SK428.
• If the total of your official receipts is $1,275 or less, complete the calculation for line 55 using Worksheet SK428.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach the official receipt (signed by an official agent of the political party or independent candidate) for each contribution.

Lines 57 to 59 – Labour-sponsored venture capital tax credit

You can claim this credit only if you were a resident of Saskatchewan at the end of the year and you made an eligible investment in a labour-sponsored venture capital corporation that invests in small and medium-size businesses.

You can claim a credit for investments made in 2018 (that you did not claim a credit for on your 2017 return) or in the first 60 days of 2019.

If a registered retirement savings plan (RRSP) for a spouse or common-law partner became the first registered holder of the share, either the RRSP contributor or annuitant may claim this credit for that share.

If you invested in a Saskatchewan provincially-registered labour-sponsored venture capital corporation, enter the credit shown in box “Tax Credit (Provincial)” of Slip T2C (Sask.), Saskatchewan Tax Incentives (issued by the Saskatchewan Ministry of the Economy), to a maximum of $875, on line 57 of Form SK428.

If you invested in a labour-sponsored venture capital corporation that is registered federally, enter the amount shown in box “Tax Credit (Provincial)” of Slip T2C (Sask.), Saskatchewan Tax Incentives (issued by the Saskatchewan Ministry of the Economy), to a maximum of $875, on line 58 of Form SK428.

The maximum labour-sponsored venture capital tax credit you can claim on line 59 of Form SK428 is $875.

If you have questions about the tax credit Slip T2C (Sask.), contact the broker you purchased the labour-sponsored venture capital shares from.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Slip T2C (Sask.).

Line 62 – Saskatchewan employee’s tools tax credit

If your 2017 notice of assessment or reassessment shows an unused one-time trade entry credit, enter this amount on line 62 of Form SK428.

Lines 64 to 66 – Saskatchewan mineral exploration tax credit

You can claim this credit if you purchased shares from a mining exploration corporation in 2018. The company’s eligible exploration expense must have been incurred in Saskatchewan.

The credit is 10% of the eligible expenses, and will be used to reduce your Saskatchewan tax in the year it is claimed. Any unused amounts can be carried forward for 10 years or carried back for 3 years.

Enter, on line 64 of Form SK428, the total of the credits shown on each Slip SK-METC, Mineral Exploration Tax Credit Certificate, that you received from mining exploration corporations that incurred qualifying expenses in Saskatchewan for 2018.

If you received information slip T5013, Statement of Partnership Income, with an amount in box 198, use only the amounts shown on your SK-METC slips to make this claim.

If your 2017 notice of assessment or reassessment shows an unused mineral exploration tax credit, enter this amount on line 65 of Form SK428.

Unused mineral exploration tax credit (lines 70 to 75)

If you do not use all of your tax credit for this year and you want to carry back the unused amount to previous years, use the chart for lines 70 to 75 on Form SK428 to calculate the available amount.

Enter, on line 73 of Form SK428, any part of this amount that you want to carry back to reduce your 2017 Saskatchewan tax. Enter on line 74 any amount you want to carry back to 2016 and on line 75 any amount you want to carry back to 2015.

Any unused amount not carried back to a previous year on line 73, 74, or 75 will be shown on your 2018 notice of assessment or reassessment.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your slips SK-METC.

Line 68 – Saskatchewan graduate tuition tax credit

You can claim this credit if you were a resident of Saskatchewan at the end of 2018 and you met all of the following conditions:

• You met the necessary qualifications to receive a certificate or diploma from an eligible program at an eligible educational institution.
• You applied for and obtained a Graduate Retention Program Eligibility Certificate from the Saskatchewan Ministry of Advanced Education.

You will be entitled to credits over a seven-year period based on your eligible tuition amount, beginning in the tax year shown on your Graduate Retention Program Eligibility Certificate, as long as you file a return as a resident of Saskatchewan for each year of your entitlement.

Your credits will be calculated at the following rates:

• 10% of your total eligible tuition amount will be allowable in each of the first four years
• 20% of your total eligible tuition amount will be allowable in each of the three years following the first four years

You can carry forward any unused credit for nine years after the year of graduation. Credits not used within this time period will expire.

The total amount of graduate tuition tax credits you can claim is $20,000 (lifetime maximum).

How to claim this credit

Complete Form RC360, Saskatchewan Graduate Retention Program. Attach this form to your return for the year of graduation (as stated on the eligibility certificate).

If you received a Graduate Retention Program Eligibility Certificate for any tax year from 2008 to 2018 and did not claim the tax credit for the year shown on the certificate, you have to send an adjustment request to the CRA. The CRA will determine your eligibility for the tax credit for each year you filed a Saskatchewan return.

If you were not a resident of Saskatchewan in the year of graduation, do not file a Saskatchewan return for that year. Instead, send your Graduate Retention Program Eligibility certificate to the CRA with a request to adjust your account to reflect your eligibility beginning in the year of graduation. If you are still entitled, the tax credit will be applied at the applicable rate starting in the year you moved to Saskatchewan.

Your 2018 notice of assessment or reassessment will show the amount of Saskatchewan graduate tuition tax credit available for 2019. This amount will include, if applicable, any unused credit from 2018.

Supporting documents
If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your Form RC360, your 2018 Graduate Retention Program Eligibility Certificate, and the receipts that support your tuition amount.