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, 2022, to reduce his or her income tax. However, if you claimed a deduction for split income on line 295, refer to Part 4 of form TP-766.3.4-V, Income Tax on Split Income, to find out whether you can transfer an amount.
To make the transfer, 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. This will reduce 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, 2022, is negative, you can enter the negative amount on line 431 of your return. If you do so, 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, 2022, is transferring to his or her father or mother 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 15% 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.