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Notes, continued

(4) An eligible student is able to transfer to either parent an amount relating to an unused

portion of their basic personal credit amount for the year (transfer mechanism for the

recognized parental contribution). Each taxation year, the amount that can be transferred

must not exceed the limit applicable for that particular year ($7,380 for 2013).

(5) This credit is available if the dependant, other than the spouse, is related to the taxpayer

by blood, marriage or adoption and ordinarily lives with the taxpayer. In order to be

eligible for the tax credit, the taxpayer must also not have benefited from a transfer of

the recognized parental contribution from this dependant. The amount claimed must be

reduced by 80% of the dependant’s income, calculated without including any scholarships,

fellowships or awards received during the year.

(6) The amounts for a person living alone or with a dependant for being 65 years of age

or over and for pension income are added together and reduced by 15% of net family

income. Net family income is the total income of both spouses/partners minus $32,480.

(7) This credit is available if the individual lives in a self-contained domestic establishment that

he maintains and in which no other person, other than himself, a minor person, or an eligible

student lives. If the individual is living with an eligible student, for the purposes of the transfer

mechanism for the recognized parental contribution (see note (4)), the individual may be able

to add an amount for a single-parent family of $1,625 to the basic amount for a person living

alone.

(8) This tax credit became available in 2012 for workers who are 65 years of age or older. It

applies to the portion of “eligible work income” in excess of $5,000. This portion is equal to

$3,000 in 2012 and was to rise to $4,000 in 2013 and gradually reach $10,000 in 2016. The

2013 Québec budget (delivered on November 20, 2012) proposed that the eligible portion

will remain at the 2012 level (or $3,000) indefinitely. Any unused portion of the tax credit

may not be carried forward or transferred to the individual’s spouse.

Eligible work income includes salary and business income, but excludes taxable benefits

received for a previous employment as well as amounts deducted in computing taxable

income, such as the stock option deduction.

(9) The credit for union and professional dues is calculated based on the annual fees paid

in the year. The portion of professional dues relating to liability insurance is allowed as a

deduction from income and therefore not included in calculating the credit amount.

(10) The tuition credit is calculated based on tuition, professional examination and mandatory

ancillary fees paid for the calendar year. Québec announced in Information Bulletin 2013-

3 that the province would decrease the tuition tax credit from 20% to 8%. The 20%

rate applicable to such fees would be set at 8% following the winter 2013 session.The

student may transfer the unused portion of the tuition credit to either one of his parents

or grandparents. The portion of this credit that is not transferred will be available for future

use by the student.

(11) Interest paid on student loans is converted into a tax credit at a 20% rate. Interest not

claimed in a particular year may be carried forward indefinitely.

(12) The medical expense credit is calculated based on qualified medical expenses in excess of

3% of family income. Family income is the total income of both spouses/partners.

(13) Charitable donations made by both spouses/partners may be totalled and claimed by

either person. The maximum amount of donations that may be claimed in a year is 75%

of net income. However, all donations may be carried forward for five years if they are not

claimed in the year made.

Québec Non-Refundable Tax Credit Rates and Amounts for 2013

Current as of September 30, 2013