What’s new for Yukon for 2018?
The personal income levels used to calculate your Yukon tax have changed.
The amounts for most territorial non-refundable tax credits have changed.
The public transit amount has been eliminated.
Yukon benefits for individuals and families
Yukon child benefit
This benefit is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under 18 years of age. This benefit is combined with the Canada child benefit into one monthly payment.
You do not need to apply for the Yukon child benefit. The Canada Revenue Agency (CRA) will use the information from your Canada child benefits application to determine your eligibility and tell you if you are entitled to receive the benefit.
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 Yukon child benefit is funded by Yukon with a contribution from Indigenous and Northern Affairs Canada on behalf of Indian children. The term “Indian” is defined in the Indian Act.
For more information about the Yukon child benefit, go to Yukon or call the Canada Revenue Agency (CRA) at 1-800-387-1193.
Did you reside on the Settlement Land of a Yukon First Nation?
If you resided on the Settlement Land of a self-governing Yukon First Nation at the end of the year, enter the First Nation name and identification number on page 1 of your return.
Complete Form YT432, Yukon First Nations Tax, to calculate the part of your federal and territorial tax that is transferred to the self-governing Yukon First Nation government responsible for the Settlement Land where you resided. Attach a copy to your return.
Completing your Yukon forms
You can download and print a copy of Form YT428, Yukon Tax, Form YT479, Yukon Credits, and Form YT432, Yukon First Nations Tax, which you need to calculate your Yukon tax and credits. Complete the forms that apply to you, and attach a copy 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 YT428, Yukon Tax
Complete Form YT428 if you were a resident of Yukon at the end of the year.
If you were a non-resident of Canada in 2018, complete Form YT428 if one of the following applies:
- You earned income from employment in Yukon.
- You received income from a business with a permanent establishment only in Yukon.
Complete Form T2203, Provincial and Territorial Taxes for 2018 – Multiple Jurisdictions, instead ofForm YT428 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 of Yukon.
Part A – Yukon non-refundable tax credits
The eligibility criteria and rules for claiming the Yukon non-refundable tax credits are the same as those for the federal non-refundable tax credits. In addition, the value and calculation of many of the Yukon non-refundable tax credits are the same as the corresponding federal credits.
Newcomers to Canada and emigrants
If you reduced your claim for the amounts on lines 300, 301, 303, 304, 305, 367, 307, 316, 318, 324, and 326 of your federal Schedule 1, you also need to reduce the corresponding territorial amounts on lines 5804, 5808, 5812, 5814, 5816, 5818, 5825, 5844, 5848, 5860, and 5864 in the same manner.
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.
Note
Enter your marital status and your spouse’s or common-law partner’s information (including their net income, even if it is zero) in the “Identification and other information” section on page 1 of your return.
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.
Note
If you were a single parent on December 31, 2018, and you choose to include all the universal child care benefit (UCCB) lump-sum payment you received in 2018 in your dependant’s income, include this amount when calculating their net income.
Line 5825 – Caregiver amount for infirm children under 18 years of age
You can claim this amount if the rules are met for claiming the amount on line 367 of federal Schedule 1.
Note
Only residents of Yukon are eligible for this amount. If you are not a resident of Yukon, you cannot claim this non-refundable tax credit when calculating your Yukon tax even if you may have received income from a source in Yukon in 2018.
Line 5833 – Adoption expenses
You can claim this amount if the rules are met for claiming the amount on line 313 of federal Schedule 1.
Note
Only residents of Yukon are eligible for this amount. If you are not a resident of Yukon, you cannot claim this non-refundable tax credit when calculating your Yukon tax even if you may have received income from a source in Yukon in 2018.
Line 5834 – Canada employment amount
You can claim this amount if you met the rules for claiming the amount on line 363 of federal Schedule 1.
Note
Only residents of Yukon are eligible for this amount. If you are not a resident of Yukon, you cannot claim this non-refundable tax credit when calculating your Yukon tax even if you may have received income from a source in Yukon in 2018.
Line 5841 – Children’s arts amount
You can claim up to $500 per child for fees paid in 2018 relating to the cost of registration or membership for your (or your spouse’s or common-law partner’s) child in a prescribed program of artistic, cultural, recreational, or developmental activity.
The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit on line 5844 of Form YT428) at the start of the year the eligible arts expense was paid.
You can claim this amount if another person has not already claimed the same fees, and the total amount claimed is not more than the maximum allowable amount if only one of you were making the claim.
Children with disabilities
If the child is eligible for the disability tax credit and is under 18 years of age at the start of the year, you can claim an additional $500 if a minimum of $100 is paid for registration or membership fees for a prescribed program in an artistic activity.
Notes
Eligible expenses do not include amounts that can be claimed under the Yukon children’s fitness tax credit (line 1 of Form YT479) or as a deduction by any person, such as the child care expenses deduction (line 214 of the return). In addition, eligible expenses do not include amounts that any person has claimed as a tax credit.
Programs that are part of a school curriculum are not eligible.
If an organization provides your child with two distinct prescribed programs and one program is eligible for the children’s arts amount and the other program is eligible for the children’s fitness tax credit, you should get two receipts. If you get only one receipt, it must clearly show the amount paid to the organization for each distinct program.
Prescribed program
To qualify for this amount, a program must be all of the following:
- ongoing (lasting at least eight consecutive weeks, or in the case of children’s camps, five consecutive days)
- supervised
- suitable for children
The program must also meet at least one of the following conditions:
- It contributes to the development of creative skills or expertise in an artistic or cultural activity.
- It provides a substantial focus on wilderness and the natural environment.
- It helps children develop and use particular intellectual skills.
- It includes structured interaction between children where supervisors teach or help children develop interpersonal skills.
- It provides enrichment or tutoring in academic subjects.
Note
An activity that develops creative skills or expertise is eligible only if it is intended to improve a child’s dexterity or co-ordination or helps in acquiring and applying knowledge through artistic or cultural activities such as literary arts, visual arts, performing arts, music, media, languages, customs, and heritage.
Reimbursement of an eligible expense
You can claim only the part of the amount you have not been, or will not be, reimbursed for. However, you can claim the full amount if the reimbursement is reported as income (such as a benefit shown on a T4 slip) and you did not deduct the reimbursement anywhere else on your return.
Note
Only residents of Yukon are eligible for this amount. If you are not a resident of Yukon, you cannot claim this non-refundable tax credit when calculating your Yukon tax even if you may have received income from a source in Yukon in 2018.
Supporting documents
Do not send any supporting documents when you file your return. Keep them in case we ask to see them later.
Line 5856 – Your tuition, education, and textbook amounts
Complete Schedule YT(S11), Territorial Tuition, Education, and Textbook Amounts.
Transferring amounts
If you do not need to use all of your 2018 tuition amount to reduce your territorial income tax to zero, you can transfer all or some of the unused part to your spouse or common-law partner (who would claim it on line 5864) or your parent or grandparent, or your spouse’s or common-law partner’s parent or grandparent (who would claim it on line 5860).
Note
You can only transfer an amount to your parent or grandparent (or your spouse’s or common-law partner’s parent or grandparent) if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.
The student must complete the “Transfer or carryforward of unused amount” section of Schedule YT(S11) to transfer an amount. The student must also complete any of the following applicable forms to designate who can claim the transferred amount and to specify the territorial amount this person can claim:
- T2202A, Tuition and Enrolment Certificate
- TL11A, Tuition and Enrolment Certificate – University Outside Canada
- TL11B, Tuition and Enrolment Certificate – Flying School or Club
- TL11C, Tuition and Enrolment Certificate – Commuter to the United States
The transferred amount may be different than the amount calculated for the same person on your federal Schedule 11. Enter the territorial amount you are transferring on line 17 of your Schedule YT(S11).
Carrying forward amounts
Complete the “Transfer or carryforward of unused amount” section of Schedule YT(S11) to calculate the amount you can carry forward to a future year. This amount is the part of your tuition, education, and textbook amounts that you do not need to use for the year and are not transferring to your spouse or common-law partner, your parent or grandparent, or your spouse’s or common-law partner’s parent or grandparent.
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 YT(S11), but do not send your other documents. Keep all your documents in case we ask to see them later.
Line 5860 – Tuition amount transferred from a child
You can claim this amount if the rules are met for claiming an amount on line 324 of federal Schedule 1.
How to claim this amount
Enter on line 5860 the total of all territorial amounts that each student has transferred to you as shown on their forms T2202A, TL11A, TL11B, or TL11C.
Notes
The student must have entered this amount on line 17 of their Schedule YT(S11). They may have chosen to transfer an amount that is less than the available territorial amount. The student cannot transfer to you any unused tuition, education, and textbook amounts carried forward from a previous year.
If you and the student were residents of different territories or provinces on December 31, 2018, special rules may apply. Contact the CRA to find out how much you can claim on line 5860.
Supporting documents
If you are filing electronically or filing a paper return, do not send any documents. Keep all your documents in case we ask to see them later.
The student must attach Schedule YT(S11) to their paper tax return.
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 – Yukon tax
Line 43 – Yukon 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 Yukon tax that applies to this income and enter the amount on line 428 of your return.
For more information about tax on split income, see the Federal income tax and benefit guide.
Line 50 – Yukon 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 YT428 to determine your Yukon additional tax for minimum tax purposes.
For more information about minimum tax, see the Federal income tax and benefit guide.
Line 52 – Territorial 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 territorial foreign tax credit.
To claim this credit, complete Form T2036, Provincial or Territorial Foreign Tax Credit.
Enter, on line 52 of Form YT428, the amount from 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 – Yukon political contribution tax credit
You can deduct part of the contributions you made in 2018 to a registered Yukon political party or to a candidate seeking election to the Yukon Legislative Assembly.
How to claim this credit
Enter your total contributions on line 54 of Form YT428, and calculate the amount to enter on line 55 as follows:
- For contributions of more than $1,275, enter $650 on line 55.
- For contributions of $1,275 or less, complete the calculation for line 55 using Worksheet YT428.
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 candidate) for each contribution.
Form YT479, Yukon Credits
Line 1 – Children’s fitness tax credit
You can claim up to $1,000 per child for eligible fees paid in 2018 for the cost of registration or membership for your (or your spouse’s or common-law partner’s) child in a prescribed program of physical activity.
The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit on line 5844 of Form YT428) at the start of the year the eligible fitness expense was paid.
The refundable part of the credit is 6.4% of the total eligible fees.
You can claim this tax credit if another person has not already claimed the same fees, and the total claimed is not more than the maximum allowable tax credit if only one of you were making the claim.
Children with disabilities
If the child is eligible for the disability tax credit and is under 18 years of age at the start of the year, you can claim an additional $500 if a minimum of $100 is paid for registration or membership fees for a prescribed program of physical activity.
Notes
If you paid an amount that would qualify to be claimed as child care expenses (line 214 of the return) and the children’s fitness tax credit, you must first claim this amount as child care expenses. Any unused part can be claimed for the children’s fitness tax credit if the requirements are met.
If an expense is eligible for the children’s fitness tax credit, it is not eligible for the children’s arts amount (line 5841 of Form YT428).
If an organization provides your child with two distinct prescribed programs and one program is eligible for the children’s fitness tax credit and the other program is eligible for the children’s arts amount, you should get two receipts. If you get only one receipt, it must clearly show the amount paid to the organization for each distinct program.
Prescribed program
To qualify for the children’s fitness tax credit, a program must be all of the following:
- ongoing (lasting at least eight consecutive weeks, or in the case of children’s camps, five consecutive days)
- supervised
- suitable for children
- require significant physical activity (most of the activities must generally include a significant amount of physical activity contributing to cardiorespiratory endurance and muscular strength, muscular endurance, flexibility, and/or balance)
Notes
For a child who is eligible for the disability tax credit, the requirement for significant physical activity is met if the activities result in movement and in an observable use of energy in a recreational context.
Physical activity includes horseback riding but does not include activities where a child rides mainly on or in a motorized vehicle.
Reimbursement of an eligible expense
You can claim only the part of the tax credit you have not been, or will not be, reimbursed for. However, you can claim the full tax credit if the reimbursement is reported as income (such as a benefit shown on a T4 slip) and you did not deduct the reimbursement anywhere else on your return.
Enter, on line 6392 of Form YT479, the amount of the total eligible fees up to a maximum of $1,000 per child. Multiply this amount by 6.4% and enter the result on line 1.
Supporting documents
Do not send any supporting documents when you file your return. Keep them in case we ask to see them later.
Lines 2 to 12 – Small business investment tax credit
You can claim this credit if, at the end of the year, you were a resident of Yukon and you were 19 years of age or older.
The credit is equal to 25% of the value of eligible shares and subordinated debt that you invested in eligible Yukon businesses in 2018 (that you did not claim on your 2017 return) or in the first 60 days of 2019.
Enter, on line 2 of Form YT479, the amount of the tax credit shown on Certificate YSBITC-1, Small Business Corporation Investment Tax Credit (issued by the Yukon government).
Unused small business investment tax credit
You can carry forward your unused small business investment tax credits for seven years or carry them back three years.
Any unused tax credit is shown on your most recent notice of assessment or reassessment. Enter any unused credit from previous years on line 3 of Form YT479 to reduce your 2018 Yukon tax. The maximum amount available is $25,000 per year. This limit includes any carryover amount.
You may not need all of your credit to reduce your 2018 territorial income tax to zero. Complete lines 7 to 9 to calculate your unused credit available to carry back to previous years.
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 YSBITC-1 certificate.
Lines 13 to 25 – Labour-sponsored venture capital corporation tax credit
You can claim a credit equal to 25% of eligible investments you made in the Fireweed Fund Corporation in 2018 (that you did not claim on your 2017 return) or in the first 60 days of 2019. The maximum annual credit is $1,250.
If the investment was made into a spousal or common-law partner registered retirement savings plan, you or your spouse or common-law partner can claim the tax credit.
Enter, on line 13 of Form YT479, the amount of the tax credit shown on the tax credit certificate you received from the Fireweed Fund Corporation.
Unused labour-sponsored venture capital corporation tax credit
You can carry forward your unused labour-sponsored venture capital corporation tax credits for seven years or carry them back three years.
Any unused tax credit is shown on your most recent notice of assessment or reassessment. Enter any unused credit from previous years on line 14 of Form YT479 to reduce your 2018 Yukon tax.
You may not need all of your credit to reduce your 2018 territorial income tax to zero. Complete lines 20 to 22 to calculate your unused credit available to carry back to previous years.
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 certificate.
Line 26 – Research and development tax credit
You can claim this credit if you were a resident of Yukon at the end of the year and you made eligible expenditures in the tax year for scientific research and experimental development carried out in Yukon.
How to claim this credit
Complete Form T1232, Yukon Research and Development Tax Credit (Individuals).
Enter, on line 26 of Form YT479, the amount from line 8 of Form T1232.
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 T1232.
Line 28 – Yukon First Nations income tax credit
If you resided on the Settlement Land of a self-governing Yukon First Nation at the end of the year, complete Form YT432, Yukon First Nations Tax.
This form contains all the information about this credit.