The most popular tax rates and credits, deductions, programs and refunds in Quebec

Do you live in Quebec and practice your profession there? There is a number of things you need to know about things like tax rates and credits. JKB Services, a specialist in offering accounting services in Montreal can give you valuable advice and give you all the information you need to know. Here is some information you should know about tax rates and credits.

The tax rate in Quebec

In Quebec, the TP1 form is used to calculate the provincial tax, refundable tax credits and non-refundable tax credits. If you want to file an income tax return, be aware that it must be submitted to Revenu Québec. In contrast, the federal income tax return is filed with the Canada Revenue Agency (CRA).

Le taux d’imposition appliqué au Québec

In Quebec, the tax rate depends on the annual income of each household. Thus, the amount to be paid will not be the same for two different families. Starting at $ 40,100, the tax rate is 16%. If this income is increasing, the rate drops to 20% over the next $ 40,100 or more. For income over $ 80,200, the tax rate is 24%.

Note that your taxable income refers to your net income after subtracting allowable deductions such as capital gains. In other words, this is the amount to which your income tax is deducted.

What you should know about tax credits, deductions and specific refunds in Quebec

In Quebec, there are different types of tax credits, deductions or even specific reimbursements. Here are a few :

Solidarity tax credit:

Since July 2011, beneficiaries of solidarity tax credit receive the related amount directly to their bank account. You can apply for this credit if you meet the various grant conditions. Note that this single amount replaces the property tax refund, the credit for TVQ or the Nordic village tax credit.

Child assistance payment:

You can access this payment without making the request if your child was born in Quebec. You just have to make the declaration of his birth. However, if your child was born elsewhere, the formulation of a request is necessary. Note that the child assistance payment is very different from the Canada child tax benefit. Their only common point is that they are not taxable.

Quebec parental insurance plans

The Quebec Parental Insurance Plans or RQAP provide benefits to all eligible workers whether they are self-employed or employed in a company. The benefits granted cover leave granted in four categories, namely paternity, maternity, parental leave and adoption-related leave.

For more information on this subject, do not hesitate to inquire after JKB Services, a consulting agency specializing in providing accounting management consulting and services.

Tax credit for childcare expenses

As the terms indicate, this type of credit is for families who are required to hire child care. This credit makes it possible to offset the expenses generated by these services. The amount granted is limited and the beneficiary can thus benefit from a partial or total reimbursement of his expenses according to the amount of the latter.

Tax credit for home support for an elderly person

In Quebec, the system is advantageous for seniors. The tax credit for home support for the elderly is one of the advantages that seniors can enjoy by living in this region. Thanks to this credit, the elderly can stay at home longer. A housing allowance program is added to help them pay their rent. Families with a low income are also eligible for this allowance subject to eligibility.

Deduction for Quebec workers

If you worked in Quebec, this deduction applies to your employment income. It is around 6% and is your contribution to the development of the country. The 6% rate is applied up to a certain amount. Beyond this amount, it is revised downwards.

Some information to know

A tax credit is granted to workers aged 65 and over. This is a non-refundable credit addressed to all those who reside in Quebec and whose eligible employment income that they have earned after turning 65 is greater than $ 5,000.

There is also another tax credit which is intended for an elder and which allows him to maintain his autonomy. This is the expense tax credit and is refundable. Thanks to this credit, the beneficiary manages to offset expenses greater than $ 500, expenses incurred to cover eligible facilities. The costs relating to the stay spent in a transitional functional recovery unit are also covered by this credit.

Also note the tax credit offered between the period between 2009 and 2011 has been replaced by the program "Electric drive" since January 2012. This program allows you to benefit from a significant reduction in the purchase or rental of electric and hybrid vehicles. This offer is valid up to a maximum amount of $ 8,000.

Where can I get the tax calculation forms?

To calculate provincial income tax or provincial tax credits, you must download the forms from Came back to Quebec. There are only the forms for calculating the federal income tax that you should contact the Canada Revenue Agency (CRA).

When is green energy?

Natural Resources Quebec offers residential programs included in its energy efficiency programs. These include Econologis, Rénoclimat and Novoclimat. The first (Econologis) relates to an energy efficiency program for low-income households. The second (Rénoclimat) is a renovation program aimed at reducing energy costs. The third is a certification program for single family homes, duplexes and manufactured homes.

For more information, do not hesitate to contact the accounting services in Montreal from JKB Services if you want to respect a professional approach to the tax declaration.

Students in Quebec generally have a source of income that allows them to finance their studies. Thus, they can benefit from credits and other forms of deductions. For more information, do not hesitate to call on JKB Services. This consulting agency offering accounting services in Montreal can give you the best credit advice.

The types of income that students receive

To be able to claim Tax credits and with deductions, you have to have income to deduct. Here are the different sources of income that students in Quebec can have.

• Exemption for scholarships, the amount of which depends on the situation of each student: This income from a scholarship, a development scholarship or a research scholarship can be reduced from $ 500 to $ 1,000.
• Part-time or full-time employment;
• Employment insurance and other benefits;
• Grant or scholarship, scholarship;
• Registered Education Savings Plan (RESP);
• Continuing Education Incentive Plan (RRSP);
• …

What are the credits and deductions offered to Quebec students? How much can a student transfer to a parent, grandparents or even spouse?

Other deductions to be expected

Note that apart from the deductions mentioned above, there are other forms of deduction that students in Quebec should know:

Moving expenses: These expenses can be deducted in certain circumstances and for this, you must use the T1-M form for the federal return and the TP-348 form in the Quebec return.

Child care costs are also among the deductions to be expected. In fact, students can claim a deduction if they require child care services to attend studies in an eligible program. For those who have children in a private daycare, they can deduct the daycare expenses in both returns. In the case of a government-subsidized daycare, parents can claim the costs only in the Quebec declaration. The amount paid is clearly indicated in the RL-24 slip given to them.

The transit pass can also be deducted from the federal return.

For those who have already started paying off their student loans, they can deduct the interest paid on both of their returns.

What you need to know about tuition tax credits

Expenses related to post-secondary education are known to be heavy burdens for many students and their families. For this reason, those who study in Canada can claim various credits dedicated to students. With these credits, they can offset their expenses related to the purchase of textbooks or the payment of various study fees. Note that tuition fees are the most important expenses for students and that the existence of these credits allows them to meet them.

How to benefit from the credit for tuition fees?

All students over the age of 16 enrolled in post-secondary courses at an approved institution are eligible for the Canada tax credit. In general, students who continue their education in high school and then university are eligible for this credit. Educational institutions located outside Canada are eligible if the period of full-time study spent abroad is at least three weeks. In the event that the student has a source of income and his employer reimburses his tuition fees, he cannot take advantage of the tax credit. However, he can benefit from this credit if the employer includes the amount of tuition fees in his income. Students can also take advantage of the tax credit if their employer pays the tuition fees to their father or mother, but in their name.

What effects on taxes?

The Tuition Fee Credit is a non-refundable credit designed to reduce tax payable. To find out the amount of this credit, simply add up all the tuition fees and then multiply them by the lowest federal tax rate for the current tax year. Note that the 2012 federal tax rate was around 15%. In other words, students who have paid tuition in the amount of $ 2,000 can receive a tax credit of $ 300. As this is a non-refundable credit, the tax credit reduces the tax payable by the student to zero and generates no refund. In the event of unused credits, they can be carried over to another year or transferred in other cases.

The documents to be provided to claim the tuition credit

You should know that colleges, universities or other accredited institutions issue T2202A forms as certification. These documents confirm that a student has actually taken qualifying courses for an agreed period of time for the tuition credit grant.

Also note that a disabled student can claim full-time amounts even if they are only enrolled part-time, subject to presentation of a letter certified by a licensed physician.

Do not hesitate to call on Montreal tax services from JKB Services if you want to respect a professional approach to the tax declaration.