That time of year is almost upon us once again! Yes, you know what I’m talking about. It’s that time when you must riffle through all your receipts, invoices and bills to track down potential tax-saving expenses and get all your tax papers in order. Whether or not you have any income tax payable, tax credits are very important to consider in this process. In order to make your life a little easier, we’ve listed some of the most common tax credits you can benefit from in Quebec.

Medical Expenses

Although we do enjoy free medical care in Canada, many of us still incur an extensive amount of medical expenses such as: prescription medication, non-covered medical examinations, physiotherapy, medical devices, non-covered medical operations (ie. Laser Eye Surgery) and many more. These can all be claimed as tax credits for medical expenses when you file your tax return. Note that premiums paid under an insurance plan are deductible and that premiums paid by your employer on your behalf are taxable (only taxable in Quebec, not Federally). Keep in mind that you can only claim the medical expenses tax credit if your medical expenses (including your spouse and child’s medical expenses) exceeded 3% (or $2,208, whichever is lower for the federal credit) of your family net income. For a detailed list of eligible medical expenses see IN-130-V.

Childcare Expenses

Taxpaying Quebecers do get substantial help in the form of tax credits for childcare expenses. Expenses that can be claimed include preschool, kindergarten, daycare, and even day camp expenses. Parents can also deduct babysitter fees, even if the babysitter happens to be a family member (note that the family member can’t be one of the parents of the child). Quebecers are entitled to a tax credit of up to 75% of the annual limit depending on the estimated family income. The annual limit on qualifying expenses ranges from 5,000 to 11,000 based on the child’s age and whether or not the child has an impairment.

Gifts & Donations

Don’t forget to keep track of all the monetary donations you make throughout the year. In Quebec, you receive a provincial credit of 20% when you claim donations up to $200 and a credit of 24% on donations above $200. For example, if you donate $500 in 2015, you receive a provincial credit of 20% on $200 and 24% on $300. You also get a federal tax credit of 15% on the first $200 you claim and a credit of 29% on the remainder of your donation claim. Credits for donations can be delayed and claimed up to five years following the year you made the donation. This means you can wait until you’ve accumulated a more sizable amount to claim in order to receive a greater credit. You can also group your donations with those of your spouse to maximize your deduction. The federal government also offers an additional 25% tax credit for first time donors called the First-time donor’s super credit.

Bonus Tip: Transferring Tax Credits

Once you’ve reduced your federal tax to zero, you can transfer the unused portion of certain federal tax credits to your spouse or common-law partner. For example, the age amount, the pension income amount, and the tuition, education, and textbook amounts can be transferred. Note that a maximum of $5,000 in tuition fees can be transferred (to a spouse, parent, or grandparent) while the remainder can be carried forward to future tax years. Unused provincial tax credits can also be transferred to a spouse.

For more information on Personal Income Saving Tips, call our personal accountants at  (514) 735-8672.