431 – Credits transferred from one spouse to the other

Negative amount on line 430

If the amount on line 430 is negative, you can transfer it to your spouse on December 31, 2016 (This link will open a new window), to reduce his or her income tax.

To do so, carry the amount from line 430 to line 431 and enter “0” on line 432. Your spouse must enter the transferred amount on line 431 of his or her return. You must file a return in order for the amount to be transferred to your spouse.

If you are claiming amounts on lines 381, 385, 395, 398, 409 and 424, you can reduce them instead of transferring the unused portion of the credits to your spouse, thereby reducing your income tax for future years.

Positive amount on line 430

If the amount on line 430 of your return is positive, but the amount on line 430 of the return of your spouse on December 31, 2016, is negative, you can enter that negative amount on line 431 of your return. In this case, your spouse must file a return.

Your spouse is transferring an amount as a child 18 or over enrolled in post-secondary studies

If your spouse on December 31, 2016, is transferring to his or her father or mother (This link will open a new window) an amount as a child 18 or over enrolled in post-secondary studies, you must reduce the negative amount shown on line 430 of your spouse's return by 20% of the amount transferred to his or her father or mother (line 20 of your spouse's Schedule S) and enter that reduced amount on line 431 of your return.

Your spouse died in 2016

If your spouse died in 2016, but is considered to have been your spouse on December 31, 2016, only the negative amount on line 430 of your spouse's principal income tax return can be transferred to you.

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