Quebec Tax -> Personal tax credits
Unlike other provinces and territories, Quebec did not, for 2016 and earlier years, apply the lowest provincial tax rate (16%) in calculating the non-refundable tax credits. The rate used was 20%, except for tuition and examination fees after March 28, 2013, and charitable donations in excess of $200. The Quebec 2017 Budget changed the rate to 16%, but also increased many credit amounts so that the tax effect would be zero, except for the basic personal amount, which would have increased the tax reduction by $55 per person in 2017. The November 21, 2017 Economic Plan Update reduced the tax rate for the lowest tax bracket, which reduced the rate for personal tax credits further to 15%, increasing the amounts of some tax credits at the same time, but there was no further increase to the basic personal amount.
Quebec Tuition and Examination Fees
The tax rate for tuition and examination fees is reduced from 20% to 8% effective March 28, 2013. The following tuition and examination fees still qualify for the 20% rate:
Current year tuition and examination fees must total more than $100 in order to be eligible for the tax credit.
Quebec uses Schedule T for the calculation of the tuition and examination fees tax credit.
For more information see the Revenue Quebec information on Line 398 Tax credit for tuition or examination fees.
See QC Tax amounts subject to indexation for the amount of the basic personal tax credit for Quebec, as well as the amounts of other tax credits and deductions.
At least 200 hours of eligible services must be performed in the taxation year to claim this non-refundable tax credit, which is $3,000 x the lowest tax rate of 16%, for a tax reduction of $480. If you received tax-exempt remuneration for volunteer search and rescue workers, which is shown in box L-2 of your RL-1 slip, you must include this income in your taxable income in order to claim the tax credit.
For more information see Revenue Quebec resources:
The Quebec 2018 Budget announced a new first-time home buyers' tax credit for purchases of homes after December 31, 2017. Details can be found on page A.15 of 2018-2019 Budget Plan - Additional Information on Fiscal Measures (pdf). The tax credit will be a maximum of $5,000 multiplied by the rate applicable to the lowest personal income tax bracket, which is currently 15%, so the maximum tax reduction will be $750.
The tax credit can be shared between individuals who are eligible to claim it, but an individual's unused portion of the tax credit will not be transferable to the individual's spouse under the mechanism for transferring the unused portion of certain non-refundable tax credits to the spouse.
People with income from employment or from carrying on a business may apply for the work premium, which is calculated based on income and dependents. For more information see the Quebec Revenue Ministry Work Premium web page. Calcul@ide, on the Regie des Rentes Quebec (RRQ) website, will help you estimate the amount of refundable tax credit you will receive for the Work Premium.
The Quebec November 21, 2017 Economic Plan Update announced enhancements to the work premium tax credit, which were then modified as reported in the December 11, 2017 Information Bulletin 2017-13. For the general work premium for households without children, the existing rate of 9% will be increased to 11.6% by 2022. For the adapted work premium for households without children, the existing rate of 11% will be increased to 13.6% by 2022. The eligibility criteria for the supplement to the work premium will also be eased.
The Quebec 2016 Budget announced that the adapted work premium, which is available for households whose capacity for employment is severely limited, would be increased for 2016, for households without children. For 2016, the premium rate was increased from 7% to 9%, which resulted in the following maximum premiums:
The 2016 family income at which a household is no longer eligible for the adapted work premium was
Starting in 2015, full-time students are not eligible for the work premium or the adapted work premium unless they are, at the end of the taxation year, the parent of a child that lives with them. For more information see the Revenue Quebec information on Advance Payments of the Work Premium Tax Credits.
Refundable Tax Credit for Children's Activities
A refundable tax credit for physical, artistic and cultural activities for young people aged 5 to 16 was introduced gradually starting in 2013, as per the November 2012 Budget.
20% of eligible expenses, up to a maximum of $100 for 2013, will be reimbursed. The maximum eligible expense will increase by $100 each year until it reaches $500 in 2017. This will provide a tax credit of up to $100 per child in 2017, for families with an income of $130,000 or less.
For a young person with an impairment, an additional tax credit equivalent to the maximum tax credit will be paid once a minimum of 25% of the maximum eligible expense has been paid.
For more information, see the Quebec Revenue Ministry information on the Refundable Tax Credit for Children's Activities.
Other Personal Tax Credits
Tax shield (fiscal shield) refundable tax credit - on QC website
Refundable Independent living tax credit for seniors (age 70+) for stays in functional rehabilitation transition units - news release on QC website.
Refundable tax credit for caregivers - on QC website
The Quebec 2020 Budget proposes to enhance this tax credit for 2020, and to make it more easily accessible. See Measures Concerning Individuals in the 2020 Budget Additional Information (pdf). Two related tax credits, the refundable tax credit for respite expenses, and the refundable tax credit for volunteer respite services, will be eliminated effective January 1, 2021.
The temporary Renovert refundable tax credit, announced by the Quebec 2016 Budget, was only supposed to be available for the 2016 and 2017 tax years. However, the Quebec 2017 and 2018 Budgets have extended the tax credit to March 31, 2019, except for the construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water, because the new refundable tax credit for the upgrading of residential waste water treatment systems will apply to this work as of April 1, 2017.
Eligible costs are for work done by a qualified contractor under a contract entered into after March 17, 2016 and before April 1, 2017 (now April 1, 2019). Qualified expenditures must be paid by an individual before October 1, 2017 (now December 31, 2019).
The work must have a positive environmental impact or improve the dwelling's energy efficiency. Both principal residences and cottages are eligible dwellings for the tax credit, provided the cottage is suitable for year-round occupancy. The initial construction of the dwelling must have been completed before January 1, 2016.
The refundable tax credit will be for 20% of eligible expenditures in excess of $2,500, with the tax credit capped at $10,000. Co-owners of an eligible dwelling can split the tax credit. The total amount of the tax credit cannot exceed $10,000 for each eligible dwelling.
The previous EcoRenov refundable tax credit was only available for the 2013 and 2014 tax years. The EcoRenov tax credit was for work done by a qualified contractor under a contract entered into after October 7, 2013 and before November 4, 2014.
Revenu Quebec information on the RenoVert Tax Credit:
The Quebec 2017 Budget provides for a refundable tax credit over a 5 year period beginning April 1, 2017, to bring residential waste water treatment facilities up to standard. This credit will be for 20% of eligible expenses in excess of $2,500, with the tax credit capped at $5,500. The tax credit will reach $5,500 when total eligible expenses are $30,000. Eligible dwellings will be isolated dwellings as per the Regulation Respecting Waste Water Disposal Systems For Isolated Dwellings s. 1(u) (see below), and must be principal and secondary residences inhabitable year-round, generally occupied by the individual. Work must be performed by a qualified contractor.
Regulation respecting waste water disposal systems for isolated dwellings
1 (u) “isolated dwelling” means a single or multi-family dwelling containing 6 bedrooms or fewer which is not connected to a sewer system authorized under section 32 of the Act; any other building discharging waste water only and whose total daily flow is no more than 3,240 litres is considered to be an isolated dwelling;
Further details are available at page A.14 of the 2017-2018 Budget Plan - Additional Information on Fiscal Measures (pdf).
Tax Tip: Read all the Revenu Quebec information carefully before embarking on renovations which you think will be eligible for these tax credits.
Revenu Quebec ResourcesTax Credits - Refundable and Non-refundable
Revised: April 11, 2021
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca