CD 2013-024

1. Purpose

1.1. The purpose of this directive is to provide information concerning Quebec personal tax credits and source deductions for the 2014 taxation year.

2. Policy

2.1. Revenu Québec has announced changes to the personal tax credit and source deduction amounts for the 2014 taxation year. The “Source Deduction Return 2014”, form TP-1015.3-V (2014-01), has been modified to include the changes below.

2.2. Basic Amount

The basic amount will be increased from $11,195 to $11,305.

2.3. Amount Transferred from One Spouse to the Other

The maximum eligible amount that can be transferred from one spouse to the other will be increased from $11,195 to $11,305.

2.4. Amount for Children Enrolled in Post-Secondary Studies

The amount for the single-parent family will be increased from $1,625 to $1,640.

The amount for each minor child engaged in full-time vocational training or in post-secondary studies will be increased from $2,065 to $2,085.

Employees who had claimed any of the above credits in the past are encouraged to complete a new TP-1015.3-V (2014-01) form in order to claim the new amounts for 2014.

2.5. Amount for Other Dependants

The basic amount for every other dependant will be increased from $3,005 to $3,035.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2014-01) form in order to claim the new amount for 2014.

2.6. Amount for a Person Living Alone, or with Respect to Age, or for Retirement Income

The amount for a person living alone will be increased from $1,310 to $1,325.

The amount with respect to age will be increased from $2,410 to $2,435.

The amount for retirement income will be increased from $2,140 to $2,160.

The reduction threshold used to calculate net family income (this income is used to calculate the amount for a person living alone, or with respect to age, or for retirement income) will be increased from $32,480 to $32,795.

Employees who had claimed these credits in the past are encouraged to complete a new TP-1015.3-V (2014-01) form in order to claim the new amounts for 2014.

2.7. Amount for a Severe and Prolonged Impairment in Mental or Physical Functions

The amount for a severe and prolonged impairment in mental or physical functions will be increased from $2,545 to $2,570.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2014-01) form in order to claim the new amount for 2014.

2.8. Amount for Workers Aged 65 or Older

The maximum eligible amount for workers aged 65 or older remains unchanged at $3,000.

Employees aged 65 or older may claim this tax credit by completing a new TP-1015.3-V (2014-01) form.

2.9. Health Contribution

Line 22 of the TP-1015.3-V (2014-01) form allows individuals to ask employers or payers not to withhold health contributions under certain situations. Due to a system limitation, this exemption will not be available to employees for the 2014 taxation year as the health contributions are part of the calculation formula for Quebec income tax for 2014. Employees who are eligible for a refund of health contributions will receive it upon filing their income tax return.

3. Procedures and Instructions

3.1. Effective January 1, 2014, the Regional Pay System (RPS) will be updated with the 2014 Quebec personal tax credits as described below. Every employee will have their applicable tax credit imposed by the system as indicated in the table below.

Employees who feel that their source deductions do not properly reflect their present situation should file a new TP-1015.3-V (2014-01) form.

3.2. Compensation advisors should note that the tax credit amount on line 10 of the TP-1015.3-V (2014-01) form equates to the Quebec Tax Credit Amount in the RPS. The tax exemption amount on Line 19 of the form equates to the Quebec Tax Exemption Additional Amount in the RPS.

4. Inquiries

4.1. Any inquiries on the information contained in this directive should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Reference(s): CJA 9007-8

Information Notice to Employees

Quebec Personal Tax Credits and Deductions – 2014 Taxation Year

The purpose of this notice is to provide you with the Quebec personal tax credits and source deductions for the 2014 taxation year.

Revenu Québec has announced changes to the personal tax credit and source deduction amounts for the 2014 taxation year. The “Source Deductions Return” form, TP-1015.3-V  (2014-01), has been modified to include the changes below:

• The basic amount will be increased from $11,195 to $11,305.
• The amount transferred from one spouse to the other will be increased from $11,195 to $11,305.
• The amount for the single-parent family will be increased from $1,625 to $1,640.
• The amount for each minor child engaged in full-time vocational training or in post-secondary studies will be increased from $2,065 to $2,085.
• The basic amount for every other dependant will be increased from $3,005 to $3,035.
• The amount for a person living alone will be increased from $1,310 to $1,325.
• The amount with respect to age will be increased from $2,410 to $2,435.
• The amount for retirement income will be increased from $2,140 to $2,160.
• The reduction threshold used to calculate net family income (this income is used to calculate the amount for a person living alone, or with respect to age, or for retirement income) will be increased from $32,480 to $32,795.
• The amount for a severe and prolonged impairment in mental or physical functions will be increased from $2,545 to $2,570.
• The maximum eligible amount for workers aged 65 or older remains unchanged at $3,000. Only income earned after you turn 65 will entitle you to the tax credit for workers aged 65 or older.

If you had claimed any of the above credits in the past, you are encouraged to complete a new TP-1015.3-V (2014-01) form.

Health Contribution

Line 22 of the TP-1015.3-V (2014-01) form allows individuals to ask employers or payers not to withhold health contributions under certain situations. Due to a system limitation, this exemption will not be available to employees for the 2014 taxation year as the health contributions are part of the calculation formula for Quebec income tax for 2014. Employees who are eligible for a refund of health contributions will receive it upon filing their income tax return.

For additional information, please contact Revenu Québec. A list of Revenu Québec offices can be found on the Revenu Québec - Contact Us Web portal. If you are claiming the basic amount only, or the basic amount and the amount transferred from one spouse to the other, your tax credit amounts will be adjusted automatically in the Regional Pay System (RPS). If you are not claiming any tax credits or reductions, there will be no adjustment. For employees claiming any other tax credit and reduction amounts, the total of your tax credits and reductions will automatically be increased by an amount of $110. If you feel that your source deductions do not properly reflect your present personal tax situation, you should file a new TP-1015.3-V (2014-01) form. This form is also available at the Revenu Québec offices.

Any request for information regarding the content of this document should be addressed to your compensation advisor.