📑 Schedule ON(S2) – Provincial Amounts Transferred from Your Spouse or Common-Law Partner (Ontario)

Schedule ON(S2) is part of the Ontario section of the Canadian T1 General Income Tax and Benefit Return. It allows taxpayers to claim certain unused provincial tax credit amounts that can be transferred from a spouse or common-law partner.

The form is included in the Ontario income tax package provided by the Canada Revenue Agency (CRA). Taxpayers may complete this schedule when their spouse or partner has eligible provincial credits that they cannot fully use on their own return.

📌 Purpose of Schedule ON(S2)

The schedule calculates the amount of unused provincial non-refundable tax credits that can be transferred to a spouse or common-law partner. These transferred credits can reduce the recipient’s provincial tax payable.

  • Helps optimize the use of provincial tax credits within a household
  • Allows transfer of unused credits between spouses
  • Must be attached to the tax return when filing a paper return

🧾 Provincial Credits That May Be Transferred

Ontario taxpayers may transfer several provincial amounts if the spouse or partner does not need the entire credit. Examples include:

  • 👴 Age Amount – for individuals aged 65 or older
  • 💰 Pension Income Amount
  • ♿ Disability Amount
  • 🎓 Tuition and Education Amounts

These amounts are calculated based on information from the spouse’s Ontario tax form (Form ON428 – Ontario Tax) and then transferred using Schedule ON(S2).

📊 How the Calculation Works

The schedule determines the transferable amount by comparing the spouse’s available provincial credits with their adjusted taxable income.

The process typically involves:

  1. Enter the eligible provincial credit amounts.
  2. Add the eligible amounts to determine the total available credit.
  3. Subtract the spouse’s adjusted taxable income.
  4. The remaining amount becomes the transferable provincial credit.

The final calculated amount is then entered on the appropriate line of the Ontario provincial tax form (ON428).

👫 Who Can Use This Schedule?

Schedule ON(S2) is intended for taxpayers who:

  • Were residents of Ontario on December 31 of the tax year
  • Have a spouse or common-law partner
  • Are eligible to receive transferred provincial tax credits

If your spouse or partner files their own return, the amounts used in this schedule must match the information reported on their tax forms.

📥 Download the Official Form

The CRA provides Schedule ON(S2) in several accessible formats including standard PDF, fillable PDF, and alternative formats for accessibility.

Schedule ON(S2) – Provincial Amounts Transferred from Your Spouse or Common-Law Partner

For best results, the CRA recommends downloading and opening the form using Adobe Acrobat Reader.

💡 Tips for Ontario Taxpayers

  • Review your spouse’s provincial credits before completing the schedule.
  • Ensure the amounts match those reported on Form ON428.
  • Keep all supporting tax slips and documents for your records.
  • Use certified tax software when filing electronically to avoid calculation errors.

Using transferred credits effectively can reduce the total provincial tax payable for a household and improve tax efficiency for couples.