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In this two-part series, we will explore new, lesser known tax developments and measures that can help reduce your tax bill and maximize your tax refund.
Buying your first home
For several years now, the federal government has been offering a $750 tax credit (before Quebec abatement) for a new home owner. Good news for 2018: there’s also a maximum credit of up to $750 available in Quebec. As such, a total credit of $1,376 can be available for the purchase of a first home.
Be aware however that this does not necessarily imply the purchase of a “first” home. To qualify for the credit, you must not have lived, in the acquisition year or the four previous years, in another dwelling owned by you, your spouse or your common-law partner. Additionally, the residence must be acquired with the intention of making it your principal residence no more than one year after it is purchased.
Renovations
The refundable RénoVert tax credit, extended until March 31, 2019, allows you to obtain up to $10,000 for eco-friendly renovations carried out on a principal residence or cottage. Eligible work includes renovations involving insulation, waterproofing, doors and windows, heating, air conditioning, etc. Individuals have until March 31, 2019 to enter into an agreement with a recognized contractor and will have to pay for their renovation expenses before January 1, 2020.
Family caregivers
The Quebec tax system provides for several credits available to family caregivers:
- Taking care of your spouse of at least 70 years of age in your own residence could allow you to claim a maximum tax credit of $1,015 in 2018.
- Housing or living with a relative who needs care can entitle you to claim a maximum tax credit of $1,185 for 2018.
- New this year, caregivers who do not live with the relative they’re caring for can request a maximum refundable tax credit of $533. To qualify, they must help this person regularly on voluntary daily basis.
- In order to provide more support for family caregivers who need respite, the eligibility criteria for the tax credit for respite of caregivers were increased in 2018. Caregivers can allocate a $250 credit to a volunteer who has provided 200 hours of assistance during the year, $500 for 300 hours, and $750 for 400 hours of work.
Don’t forget that there are also federal support measures for family caregivers. A credit is available if you are caring for a spouse, common-law partner or dependent with a physical or mental disability (parents, grandparents, children, grandchildren, brothers, sisters, uncles, aunts, nephews or nieces). Several factors influence the available credit, such as your relationship with the person, the person’s net income and whether or not other credits were claimed for this person.
Tips
If you qualify for the first-time homebuyer tax credit, make sure to update your address in your tax return and the information entered with regard to an HBP, if applicable.
If you carried out eligible renovations for the RénoVert credit, don’t forget to obtain a copy of prescribed form TP-1029.RV.A-V duly completed and signed by the contractor who did the work.
Consult your tax specialist or financial advisor to ensure that you receive all the benefits to which you are entitled.
This article was published on April 24, 2019 in the Journal de Montréal and Journal de Québec (in French). Christian Menier is the new columnist for the Argent – Dans vos poches column.