What information can I transfer to next year?
You are allowed to carry forward certain expenses to a future tax year. This is useful if you do not need all the expense in order to reduce your taxable income to zero.
Note: Certain limits apply to the amounts or the number of years that you can carry amounts forward. Consult the in-product help for the CRA rules and guidelines.
The following are the more common amounts that you can carry forward, and the form on which they are reported. If you use TurboTax's Transfer feature next year, these amounts will be transferred automatically into your return:
- Charitable donations - Form DON, Charitable Donations worksheet (and Québec Form QDON). Enter the amount you want to carry forward in the space below the line Total Donations Available.
- RRSP contributions - Form RRSP, RRSP Worksheet. You can carry forward RRSP contributions to a future year when you are in a higher tax bracket. Enter these in box (ii) of Section 1 of the RRSP worksheet. TurboTax transfers this amount to line 14 of Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities.
- Tuition and education amounts - Schedule 11 (Federal) and Schedule 11-PROV (Provincial). Line 21 of each form shows the amount available for carry-forward.
- Student loan interest - Form LOAN, Interest paid on student loans. You can carry forward for up to five years interest that you paid (or that a relative paid on your behalf) on a student loan. The amount available for carryforward is shown at line 8.
- Moving expenses - Worksheet CARRY Carry Forwards from Previous Year. Enter moving expenses carried forward from last year on this year's CARRY worksheet.
Moving expenses incurred this year that you haven't sufficient income to claim against are calculated on Form T1M Moving Expenses Deduction (and Québec TP348) and carried forward to next year's CARRY worksheet. The difference between line 18 and line 20 on Form T1M is entered on next year's CARRY worksheet.
- Employment expenses - Form T777, Statement of Employment Expenses (and Québec TP59). The amount of home office expenses available for future years is shown below line 25 in the Work-space-in-the-home section on page 2 (and on line 38 of TP59).
- Capital Cost Allowance (CCA) closing balance - Self-employment business statements (T2125 - Professional, Business, Self-employed Commission, T2042 - Farming, T1163 and T1175 - AgriStability and AgriInvest Programs (formerly CAIS Farming), or T2121 - Fishing). The undepreciated capital cost (UCC) at the end of the year (shown in the right-most column of the CCA sections of these forms) is the amount that you will use as your UCC at Start of Year on <b>next year's</b> tax return.
The related Québec forms are TP80 (Professional, Business, and Commission), QFARM (Farming), and QFISH (Fishing).
- Business-use-of-home expenses - Self-employment business statements (T2125 - Professional, Business, Self-employed Commission, T2042 - Farming, T1175 - CAIS Farming, or T2121 - Fishing). If you do not have enough self-employment income to offset your expenses, you can carry the balance of your business-use-of-home expenses forward to the next tax year. This amount is shown near the bottom of the Calculation of business-use-of-home expenses section of the form.
The related Québec forms are TP80 (Professional, Business, and Comission), QFARM (Farming,and QFISH (Fishing).
Note: You cannot use business-use-of-home expenses to create a business loss.
- Loss Carryback Request - Form T1A, Request for Loss Carryback (and Québec TP1012). The amount available for carryforward is shown at the end of each section.
- Losses - Form LOSS, Loss Worksheet (and Québec QLOSS). Losses can include limited partnership losses, non-capital losses, farming and fishing losses, restricted farming losses, listed personal use property losses, and net capital losses. The amount available for carryforward is shown at the end of each section of the form; current year losses are transferred to Form T1A, Request for Loss Carryback and carried forward to the LOSS worksheet for next year.
- Alternative Minimum Tax - Form T691. The amount available for carryforward is shown at line 129.
- Cost of acquiring labour-sponsored shares - Form LSVCC, Labour-sponsored Venture Capital Corporation Shares worksheet.
- Home Buyers' Plan repayment - Form HBP, Home Buyers' Plan Worksheet.
Enter the balance to be repaid and the minimum repayment required for the tax year. These amounts are shown on your Notice of Assessment from the CRA. Once you've entered these amounts, TurboTax keeps track of the balance and carries it forward into next year's return.
- Lifelong Learning Plan repayment - Form LLP, Lifelong Learning Plan Worksheet. Enter the balance to be repaid and the minimum repayment required for the tax year. These amounts are shown on your Notice of Assessment from the CRA. Once you've entered these amounts, TurboTax keeps track of the balance and carries it forward into next year's return.
You CANNOT carry forward:
- Federal non-refundable tax credits shown on lines 300 through 338 of Schedule 1;
- Unclaimed medical expenses (unless they fall within the 12-month claim period that ends in that tax year. In this case, however, do not enter them on this year's return, but save them and enter them on next year's return);
- Federal or provincial tuition amounts transferred from a child or a spouse or common-law partner. However, the child can carry forward these amounts and claim them in a future year.