Quebec

Tax Shield

Easy application

Tax filing required

The Tax Shield is for people whose work incentive tax credits have gone down because their income has gone up. It can offset a decrease in:

  • The work premium.
  • The adapted work premium.
  • The tax credit for childcare expenses.

The tax shield is calculated based on your conjugal status (for example, your relationship with a partner) and family income (your income plus that of your spouse on December 31 of the year covered by the claim). It has two components:

  • One related to the work premium and the adapted work premium.
  • One related to childcare expenses.

The work premium component can reach $600 for a couple. The childcare component can represent an increase of a few percentage points in the applicable tax credit rate. The exact amount of the tax shield is determined by adding the work premium and childcare components.

You can claim the tax shield if you lived in Québec on December 31, and you (or your spouse, if applicable) are entitled to the tax credit for childcare expenses or the work premium tax credits (work premium or adapted work premium). You might even be able to get the tax shield even if you were not entitled to any of the work premium tax credits in 2021.

You must meet the requirements below.

If you did not have a spouse on December 31:

  • Your net income for the year (line 275 of your income tax return) is more than that reported in your return the previous year.
  • Your eligible work income is more than it was in your last tax return.

If you had a spouse on December 31:

  • Your net family income (the total of the amounts on line 275 of your and your spouse's income tax return) is more than in your previous tax return.
  • Your or your spouse's eligible work income is more than it was in the previous year (based on your income tax returns for each of those years).

Special case

Contact Revenu Québec if either of the following applied on December 31, 2020, or December 31, 2021:

  • You or your spouse was not resident in Québec.
  • You or your spouse was confined to a prison or similar institution and was confined for one or more periods totalling more than 183 days in the year (2020 or 2021, as applicable).

Social Insurance Number

  • confirmation of SIN letter
  • plastic SIN card (non-expired)

The tax shield is a refundable tax credit. If you would like to receive it, check box 99 of Schedule C or box 5 of Schedule P when you file your income tax return. Revenu Québec will figure out the amount you are entitled to. If you would like to see how much you could get, fill out form TP-1029.BF-V, Tax Shield.

For more information, visit the Claiming the Tax Shield website.

Last updated: October 9, 2021