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Québec -> Personal tax credits -> Experienced worker tax creditQuébec experienced worker tax credit for ages 65+The tax credit for experienced workers is available starting in the 2012 taxation year. It is available to individuals who live in Québec and are 65 years of age or older on December 31st of the taxation year, or who are 65 years of age or older on their date of death, if they died in the year. The amount of the credit depends upon the eligible amount of work income. This is the amount by which the eligible work income of the individual exceeds the base amount of $5,000, to a maximum of $3,000 in 2012, increasing in subsequent years, to the following maximums:
Eligible work income for the year includes the total of the following amounts included in the income of the individual on the tax return:
Amounts excluded from eligible work income:
(1) From 2011-2012 Budget: For example, the individual may not include, in computing his or her eligible work income for a year, an amount attributable to the portion of work income deducted in computing his or her taxable income for the year because the income was situated on a reserve or on premises, was exempt from income tax under a tax agreement, entitled the individual to a tax holiday for specialized foreign workers (e.g. researchers, experts, professors) or was related to the exercise of a stock option. For the year in which an individual turns 65, only the portion of the eligible work income that is attributable to the period in which the individual was at least 65 may be taken into account in computing the tax credit for experienced workers. This tax credit is included in the calculations in the Québec tax calculator. In order to calculate the credit in the year in which an individual turns 65, the calculator prorates the income earned in the year. For instance, if the individual turns 65 in March, 9/12ths of the eligible work income for the year is included in the calculation. We are not sure yet if this is how the calculation will actually be implemented. Example of calculation for the taxation year 2012:
The rate used for the year to calculate the deduction for workers is 6%, or .06. This rate is used to calculate the factor of 94%, which is equal to 1 - .06, or 0.94. If any portion of the tax credit for experienced workers is unused, it cannot be carried over to another year, and it cannot be transferred to the individual's spouse. Resources:
Revised: December 20, 2011 |
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