ARCHIVED CD 2010-023

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• Information Notice to Employees

December 7, 2010

SUBJECT: Quebec Personal Tax Credits and Source Deductions -- 2011 Taxation Year

1. PURPOSE

1.1. The purpose of this directive is to provide information concerning Quebec personal tax credits and source deductions for the 2011 taxation year.

1.2. A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Are You a Public Service Employee?" page of the Compensation Sector Web site.

2. POLICY

2.1. The "ministère du Revenu du Québec" (MRQ) has announced changes to the personal tax credit and source deduction amounts for the 2011taxation year. The "Source Deduction Return 2011", form TP-1015.3-V (2011-01), has been modified to include the changes below.

2.1.1. Basic Amount

The basic amount will be increased from $10,505 to $10,640.

2.1.2. Amount Transferred from One Spouse to the Other

The amount transferred from one spouse to the other will be increased from $10,505 to $10,640.

2.1.3. Amount for children enrolled in post-secondary studies

The amount for the single-parent family will be increased from $1,525 to $1,545.

The amount for each minor child engaged in full-time vocational training or in post-secondary studies will be increased from $1,940 to $1,965.

Employees who had claimed any of the above credits in the past are encouraged to complete a new TP-1015.3-V (2011-01) form.

2.1.4. Amount for Other Dependants

The basic amount for every other dependant will be increased from $2,820 to$2,855.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2011-01) form.

2.1.5. 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 $1,230 to $1,245.

The amount with respect to age will be increased from $2,260 to $2,290.

The amount for retirement income will be increased from $2,010 to $2,035.

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 $30,490 to $30,875.

Employees who had claimed these credits in the past are encouraged to complete a new TP-1015.3-V (2011-01) form.

2.1.6. 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 $2,390 to $2,420.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2011-01) form.

3. PROCEDURES/INSTRUCTIONS

3.1. Effective January 1, 2011, the Regional Pay System (RPS) will be updated with the 2011Quebec personal tax credits as described below. Every employee will have their applicable tax credit imposed by the system as indicated in the table below.

SITUATIONS	AMOUNT INDICATED IN THE RPS FOR 2010	AMOUNT INDICATED IN THE RPS AS OF JANUARY 1, 2011
Employee who had chosen not to claim the basic amount.	$0	$0
Employee who was claiming the basic amount.	$10,505	$10,640
Employee who was claiming the basic amount and the amount transferred from one spouse to the other	$21,010	$21,280
Employee who was claiming any amount other than the above three amounts.	Amount will be increased by $50	Amount will be increased by $135

Employees who feel that their source deductions do not properly reflect their present situation should file a new TP-1015.3-V (2011-01) form.

3.2. Compensation advisors should note that the tax credit amount on line10 of the TP-1015.3-V (2011-01) form equates to the Quebec Tax Credit Amount in the RPS. The tax exemption amount on Line19 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 document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
Carrie E. Roussin

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9007-8