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Quebec 2008 Budget
Canadian Tax and
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The following is a
summary of changes related to personal income tax:
Simplification and improvement of the refundable tax credit for
home support costs for people aged 70+
allowable costs increased from 25% to 30% of eligible home
amount of eligible expenses increased from $15,000
to $15,600 for non-dependent seniors
to $21,600 for dependent seniors
tax credit reduced if family net income greater than $50,000
Attendant care expenses for a person with a sever and
prolonged impairment in mental or physical functions may no longer be
claimed as medical expenses, if the person or their spouse is entitled
to the refundable tax credit for home support for elderly persons in
respect of these expenses. This applies to expenses paid after
December 31, 2007.
Beginning with the 2009 taxation year, the age amount
(currently $2,200 for persons 65+) will be indexed for inflation each
retirement income tax credit - maximum eligible income will
be raised to
$1,750 for the 2009 tax year, and
$2,000 for the 2010 tax year
new refundable tax credit, beginning in 2008, for respite
expenses of informal caregivers,
equal to 30% of total expenses paid in the year for specialized
respite services, to a maximum of $5,200 (maximum tax credit
reduced by 3% of the caregiver's family income in excess of
$50,000. This amount will be indexed annually.
new adapted work premium, beginning in 2008, for people with
a severely limited capacity for employment. Maximum premium
amounts in 2008 will be:
$1,003.14 for a person living alone
$1,476.54 for a couple without children
$2,786.50 for a single parent family, and
$3,281.20 for a couple with children
supplement to the existing or adapted work premium for long-term
recipients who give up last-resort financial assistance after March
automatic annual indexation, beginning with the 2009 tax year, for
the deduction for workers, current maximum of $1,000
the amount for emergency services volunteers, currently
applies to the first $1,000 received
the refundable tax credit for holders of a taxi driver's or
owner's permit, current amount up to $500 per permit.
stock option deduction granted to employees of innovative
small and medium-sized enterprises (SMEs) will be increased to 50%
the 12-hour rule will no longer apply to business meals
consumed, after March 13, 2008, by commission employees whose office
or employment is connected with the selling of property or negotiating
of contracts on behalf of their employer.
social security taxes paid to the US (FICA) will once again be
eligible for the foreign tax credit as income tax on non-business
refundable tax credit for child care expenses - a new
rate table will be used beginning in 2009, with 33 income brackets
that will be automatically indexed for inflation each year.
refundable tax credit for infertility medical assistance or
adoption expenses increased, beginning in 2008, from 30% to 50% of
eligible expenses, with a maximum tax credit of $10,000 per year.
Quebec is also adopting some of the measures announced in the Federal
2008 Budget, including the following measures regarding personal income
tax-free savings accounts (TFSA)
changes to registered education savings plans (RESPs)
reduction of the gross-up rate of dividends eligible for the enhanced
dividend tax credit, but the actual dividend tax credit rates will not
additions and clarifications to the list of expenses eligible for
the non-refundable medical expense tax credit.