Update From Revenue Quebec: Child Care Expenses

The Québec Minister of Finance announced in his budget speech on March 17, 2016, the additional contribution in respect of the second child is reduced by 50% for child care expenses.

This measure is retroactive to 2015. There will be no change in the calculation in Appendix I or the tax return for 2015 to reflect the announced reduction.

However, Revenue Québec will correct all 2015 tax returns so that parents affected by this change will quickly benefit from the reduction.

Furthermore, childcare costs, including the additional contribution, qualify for the deduction for child care expenses in the federal tax return. Following this announcement, the Canada Revenue Agency will also provide patches to all tax returns in 2015.

Are you an Employee of International Tax Exempt Organization?

If you work for an International organization (Ex: UN, NATO, etc), your income may generally be exempt from taxation on any income earned from such organizations. You should check your eligibility ensuring the compliance under ITA sub-paragraph 110(1) (F) (III). As a Canadian Resident you may still require to file your tax return.  If you require to file your income tax, you will have to add this revenue to the total income for the competition of net income. However, to arrive to the taxable income you will be able to subtract it under the above mentioned ITA.

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Childcare & Tax Credit

Did you know the limits on certain amounts of the tax credit for childcare expenses and tax credit for children’s activities have been increased for taxation year 2015 in Quebec.

• The limit on childcare expenses paid for a child with a severe and prolonged impairment in mental or physical functions has been increased from $10,000 to $11,000. The limit for such a child born after December 31, 1998, but before January 1, 2009, has been increased from $4,000 to $5,000. 
• The maximum amount of childcare expenses paid to a boarding school or camp has been increased from $175 to $200 per week for an eligible child born after December 31, 2008, from $100 to $125 per week for any other eligible child, and from $250 to $275 per week for a child of any age with a severe and prolonged impairment in mental or physical functions. 

The maximum eligible registration or membership fees have been increased from $200 to $300 per child, for a maximum tax credit of $60 per child, or $120 if the child has a severe and prolonged impairment in mental or physical functions.