Revenu Quebec offers a range of credits for seniors. If you report qualifying retirement income on your return, you may qualify to claim a non-refundable credit.
To claim this amount, you or your spouse must report income on lines 122 or 123 of your Quebec income tax return.
Line 122 is reserved for payments from pension plans, Registered Retirement Savings Plans, Registered Retirement Investment Funds, Deferred Profit Sharing Plans, Pooled Registered Pension Plans and annuities.
Line 123 features the same types of income. However, on this line you report income that was transferred to you by your spouse, rather than income you earned yourself.
Unfortunately, if you report Old Age Security pension on line 114 or pensions from the Canada Pension Plan or the Quebec Pension Plan, these payments do not help to qualify you for this credit.
It’s also important to note that if you reported any payments from a retirement compensation arrangement on line 123 of your income tax return, you should not take these payments into account when determining your eligibility.
To determine your eligibility for the retirement income credit, you need to complete Schedule B of your Quebec income tax return.
This schedule also helps you determine whether you can claim the age amount and the amount for a person living alone.
The form first requires you to add your income from line 275 of your Quebec return to your spouse’s income from the same line. As of 2015, if you are single, your income must be less than $50,400 to qualify. If you are married, your combined income must be less than $70,100.
If you meet the income limits, Schedule B guides you through a series of calculations. By the end, you will obtain the total you can claim for the retirement income credit, as well as the other two credits.
The figure on line 32 of this form is the amount you may claim. If you choose, you can split it between you and your spouse, as long as your combined claim doesn’t exceed the amount on line 32. Transfer this amount to line 362 of your Quebec return.
Note for Canadian Emigrants
In many cases, credits are only available to tax filers who lived in Quebec on the last day of the year for which they are filing. However, the credit from retirement income does not hinge on this requirement.
Typically, if you live outside the country for part of the year, you multiply your credits by the portion of the year you were in Canada and you claim that amount. However, you should not apply this formula to the retirement income credit.
Instead, you need to modify the amount of income you take into account when calculating this credit. Rather than only including Canadian-earned retirement income, ensure that you also include all of your income from sources outside of Canada.