CD 2012-024

Subject: Quebec Personal Tax Credits and Source Deductions - 2013 Taxation Year

December 21, 2012

1. Purpose

1.1. The purpose of this directive is to provide information concerning Quebec personal tax credits and source deductions for the 2013 taxation year.

2. Policy

2.1. Revenu Québec has announced changes to the personal tax credit and source deduction amounts for the 2013 taxation year. The "Source Deduction Return 2013", form TP-1015.3-V (2013-01), has been modified to include the changes below.

2.2. Basic Amount

The basic amount will be increased from $10,925 to $11,195.

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 $10,925 to $11,195.

2.4. Amount for children enrolled in post-secondary studies

The amount for the single-parent family will be increased from $1,585 to $1,625.

The amount for each minor child engaged in full-time vocational training or in post-secondary studies will be increased from $2,015 to $2,065.

Employees who had claimed any of the above credits in the past are encouraged to complete a new TP-1015.3-V (2013-01) form in order to claim the new amounts for 2013.

2.5. Amount for Other Dependants

The basic amount for every other dependant will be increased from $2,930 to $3,005.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2013-01) form in order to claim the new amount for 2013.

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 $1,280 to $1,310.

The amount with respect to age will be increased from $2,350 to $2,410.

The amount for retirement income will be increased from $2,090 to $2,140.

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 $31,695 to $32,480.

Employees who had claimed these credits in the past are encouraged to complete a new TP-1015.3-V (2013-01) form in order to claim the new amounts for 2013.

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 $2,485 to $2,545.

Employees who had claimed this credit in the past are encouraged to complete a new TP-1015.3-V (2013-01) form in order to claim the new amount for 2013.

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 (2013-01) form.

2.9. Health Contribution

The Government of Quebec announced that effective January 1, 2013, the health contributions previously paid through personal tax filing will become a source deduction.

The formula for calculating the source deductions of Quebec income tax for 2013 has been revised to take into account the health contribution. Therefore, starting with the first pay in 2013, the health contribution will be part of the Quebec provincial tax withheld from regular and supplementary payments. This will affect employees who work and reside in Quebec only.

Line 22 of the TP-1015.3-V (2013-01) form allows individuals to ask employers not to withhold health contributions in certain situations. Due to a system limitation, this exemption will not be available to employees for the 2013 taxation year, as the health contribution is part of the calculation formula for Quebec income tax for 2013. 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, 2013, the Regional Pay System (RPS) will be updated with the 2013 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.
Situations Amount Indicated in the RPS for 2012 Amount Indicated in the RPS as of January 1, 2013
Employee who had chosen not to claim the basic amount $0 $0
Employee who was claiming the basic amount $10,925 $11,195
Employee who was claiming the basic amount and the amount transferred from one spouse to the other $21,850 $22,390
Employee who was claiming any amount other than the above three amounts Amount will be increased by $285 Amount will be increased by $270

Employees who feel that their source deductions do not reflect their present situation should file a new TP-1015.3-V (2013-01) form.

3.2. Compensation advisors should note that the tax credit amount on line 10 of the TP-1015.3-V (2013-01) 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.

3.3. Health Contribution

Effective January 1, 2013, the RPS will automatically calculate and deduct the health contribution for payments dated on or after January 1, 2013.

4. Inquiries

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

Original Signed by
Carrie E. Roussin

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

Reference(s): CJA 9007-8

Information Notice to Employees

Quebec Personal Tax Credits and Deductions – 2013 Taxation Year

The purpose of this notice is to inform you of the Quebec personal tax credits and source deductions for the 2013 taxation year.

Revenu Québec has announced changes to the personal tax credit and source deduction amounts for the 2013 taxation year. The "Source Deductions Return" form, TP-1015.3-V (2013-01), has been modified to include the changes below:

  • The basic amount will be increased from $10,925 to $11,195.
  • The amount transferred from one spouse to the other will be increased from $10,925 to $11,195.
  • The amount for the single-parent family will be increased from $1,585 to $1,625.
  • The amount for each minor child engaged in full-time vocational training or in post-secondary studies will be increased from $2,015 to $2,065.
  • The basic amount for every other dependant will be increased from $2,930 to $3,005.
  • The amount for a person living alone will be increased from $1,280 to $1,310.
  • The amount with respect to age will be increased from $2,350 to $2,410.
  • The amount for retirement income will be increased from $2,090 to $2,140.
  • 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 $31,695 to $32,480.
  • The amount for a severe and prolonged impairment in mental or physical functions will be increased from $2,485 to $2,545.
  • 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 (2013-01) form.

Health Contribution

The Government of Quebec announced that effective January 1, 2013, the health contributions previously paid through personal tax filing will become a source deduction. The formula for calculating the source deductions of Quebec income tax for 2013 has been revised to take into account the health contribution. Therefore, starting with the first pay in 2013, the health contribution will be part of the Quebec provincial tax withheld from regular and supplementary payments. This will affect employees who work and reside in Quebec only. If you work in Quebec but reside in a different province, you will not have health contributions deducted at source.

Line 22 of the TP-1015.3-V (2013-01) form allows individuals to ask employers not to withhold health contributions in certain situations. Due to a system limitation, this exemption will not be available to employees for the 2013 taxation year, as the health contribution is part of the calculation formula for Quebec income tax for 2013. 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 - 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 $270. If you feel that your source deductions do not reflect your present personal tax situation, you should file a new TP-1015.3-V (2013-01) 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.