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refundable tax credit for interest paid on student loans Quebec has adopted the federal rules that provide tax relief for these loans In Quebec, the credit is equal to 20 percent of the loan interest paid And if you choose not to claim a credit in a particular year for such interest paid, you ll be able to claim that credit in any future year You ll have to le a general tax return, rather than a simpli ed return, to claim this credit
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The 2003 Quebec budget had introduced a new caregiver tax credit effective for 2003 and future years The credit was available to those who care for an elderly
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parent (or other relative) or person who has a severe and prolonged mental or physical impairment This caregiver tax credit was replaced in 2006 Speci cally, the various measures for natural caregivers of adults will be replaced, as of the 2006 taxation year, by a refundable tax credit for natural caregivers of up to $1,000 per person housed The new tax credit will consist of, for each eligible relative housed, a universal basic amount of $550, plus a supplement of $450 that will be reduced on the basis of the eligible relative's income for the year for which the tax credit is claimed The reduction rate will be 16% for every dollar of eligible relative's income in excess of a threshold of $20,000 The various parameters of the tax credit, except for the reduction rate, will be indexed automatically as of the 2007 taxation year
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When total donations exceed $200 (down from $2,000 in 2005) annually, the excess will provide greater tax relief in the form of a credit calculated at 240 percent (the rate of the highest tax bracket) of the excess amount (total donations of $200 or under attract a credit at 20 percent for 2006 the rate applicable to most non-refundable credits, generally) Donations in excess of the maximum that you can claim in a given year can be carried forward and used over the subsequent five years, or carried back to the previous year where the donor dies in the year of the contribution In order to encourage gifts of works of art to Quebec museums, the amount used to calculate the tax credit or the deduction for these gifts is equal to the fair market value of the work of art, plus 25 percent of that amount
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In the 2000 budget, the Quebec government announced that the rst $3,000 of scholarships, fellowships, bursaries, and prizes received by students would be tax-free The 2001 budget took this a step further and announced that bursaries and prizes received other than by way of a registered education savings plan, through the carrying on of a business or by virtue of an of ce or employment, would be completely tax free, effective 2001
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If your employer requires you to move and gives you a moving allowance, you can exclude from income the portion of this allowance that equals two weeks of your salary at the new location Quebec has also adopted the federal rules introduced in the 1998 federal budget regarding reimbursements for losses on the sale of a home, fair market value guarantees, and interest subsidies See 3, Tip 26
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