FAQ
PERSONAL TAX TIPS
WHAT MEDICAL EXPENSES QUALIFY FOR TAX CREDITS IN QUEBEC? A: Non-refundable tax credits are available for medical expenses paid for yourself, your spouse, or dependents, as long as they exceed 3% of your yearly net income over the last 12 months. Keep copies of your receipts for documentation.
CAN I CLAIM A TAX CREDIT FOR DIGITAL NEWS SUBSCRIPTIONS? A: Yes, a non-refundable tax credit of up to $500 is available for qualifying digital news subscriptions to eligible Canadian journalism organizations that do not hold broadcasting licenses. If shared, the claim can be split.
IS THERE A TAX CREDIT FOR INFERTILITY TREATMENTS IN QUEBEC? A: Yes, refundable tax credits are available for IVF expenses if: You were a Quebec resident on December 31st of the taxable year. A physician certifies that neither you nor your spouse underwent sterilization for non-medical reasons. Neither you nor your spouse had a child before the claimed expenses.
HOW MUCH CAN I CLAIM FOR DONATIONS & GIFTS? A: You can claim up to 75% of your net income for donations made to eligible Canadian charities. Quebec also provides an additional tax credit for charitable donations. Use Schedule 9 to report these donations.
CAN I CLAIM INTEREST PAID ON STUDENT LOANS? A: Yes, if you received a post-secondary student loan under the Canada Student Loans Act, Canada Student Financial Assistance Act, or Apprentice Loans Act in 2020 or within the last five years. If you have no taxes to pay, you can carry forward the credit for up to 5 years. Quebec also offers a provincial tax credit for student loan interest.
WHAT TAX BENEFITS ARE AVAILABLE FOR FIRST-TIME HOME BUYERS? A $5,000 non-refundable tax credit is available for first-time home buyers who purchased a qualifying home in 2020 and did not own or live in another home in the last 4 years. Quebec also offers an additional $750 tax credit for first-time home buyers.
CAN I GET A TAX CREDIT FOR DONATING TO QUEBEC POLITICAL PARTIES? A: Yes, tax credits are available for donations made to eligible Quebec political parties, independent candidates, and financial representatives authorized under Quebec’s Act. Party members and candidates cannot claim this credit.
IS THERE A TAX CREDIT FOR VOLUNTEER FIREFIGHTERS? A: A $3,000 non-refundable credit is available for those who served as volunteer firefighters for at least 200 hours in 2020. Quebec does not allow this claim for temporary replacements, full-time firefighters, or those who are paid.
CAN SEARCH & RESCUE VOLUNTEERS CLAIM A TAX CREDIT? A: Yes, a $3,000 tax credit is available for eligible search and rescue volunteers (SRVA) who participate in training, emergency response, and team meetings. A provincial tax credit is also available in Quebec.
CAN I CLAIM A TAX CREDIT FOR WORKING FROM HOME? A: Yes, you can claim $2 per day, up to 200 days, for a maximum tax credit of $400 under the temporary flat rate method for 2020.
DO I NEED TO DECLARE CERB ON MY INCOME TAX? A: Yes, CERB payments are taxable. The CRA will issue T4 and RL1 slips, and the payments must be declared on your 2020 income tax return. For more details or assistance with your tax return, contact us today!
WHAT IS PERSONAL INCOME TAX? A personal income tax return includes all financial activities from the calendar year. It consists of revenue, investments, RRSP contributions, charitable donations, medical/dental expenses, and other income sources. Every individual in Canada is required to file a personal income tax return with the government.
WHEN IS THE PERSONAL TAX FILING DEADLINE? Individuals: April 30th Registered Businesses (Sole Proprietors): June 15th
WHAT ARE THE INCOME TAX BRACKETS? Provincial (Quebec) Tax Brackets: $43,790 or less – 15% $43,790 to $87,575 – 20% $87,575 to $106,555 – 24% Over $106,555 – 25.75% Federal Tax Brackets: $15,269 or less – 0% $15,269.01 to $43,790 – 15% $43,790.01 to $87,575 – 20% $87,575.01 to $106,555 – 24%
SHOULD I BUY RRSPs? RRSPs help reduce taxable income and lower taxes owed. If your declared income is high, purchasing RRSPs can be a strategic way to minimize your tax liability. Tax slips from financial institutions must be applied to your tax return to claim RRSP deductions.
WHAT EXPENSES CAN BE CLAIMED FOR RENTAL PROPERTIES? Interest on the mortgage Condo fees Renovations Professional fees (lawyers, notaries, accountants) Appliances
BUSINESS INCORPORATION & GST/QST IN QUEBEC
CAN I INCORPORATE A BUSINESS ON MY OWN? A:Yes, an individual can incorporate a business without professional help. A lawyer is recommended if multiple shareholders are involved with specific ownership percentages. An accountant can assist with the incorporation process but cannot handle legal aspects of ownership structure.
WHAT IS THE PROCESS OF INCORPORATING A BUSINESS IN QUEBEC? A: Meet with an accountant or representative to sign authorization letters allowing them to file on your behalf. Provide required details: - Three business name options or a numbered company. - Full legal names, addresses, and phone numbers of all shareholders. - Business activity description and industry classification. - Business address and contact details. The accountant files the incorporation with the Registre des Entreprises du Québec (RDE) and pays a $337 fee. The business owner receives a Certificate of Incorporation within 5–10 business days, which is required to open a business bank account.
DO I NEED TO OBTAIN GST/QST NUMBERS FOR MY NEW BUSINESS? A: If your business expects to generate over $30,000 in revenue, registering for GST/QST is mandatory. Many new businesses are uncertain about their first-year revenue, but it’s recommended to register from the start for a solid financial foundation. When handling incorporation, accountants usually apply for GST/QST numbers on behalf of their clients.
WHAT IS THE PROCEDURE FOR OBTAINING GST/QST NUMBERS IN QUEBEC? 1. The business owner signs a letter of authorization allowing an accountant/representative to apply on their behalf. 2. A GST/QST application is completed with business details, owner’s information, SIN number, and filing frequency (monthly, quarterly, or annually). 3. The representative submits the application in person at a Revenue Quebec office, where the request is processed immediately. 4. Within 5–10 business days, the business owner receives a confirmation letter and GST/QST certificate by mail.
ACCOUNTING, AND TAX FILINGS
WHAT IS THE DIFFERENCE BETWEEN A CORPORATION AND A PROPRIETORSHIP? A corporation is an independent legal entity separate from its owner. It requires a separate tax return and follows corporate tax rates and brackets. A sole proprietorship is tied to the owner personally, and its revenue and expenses are reported under the business income section of the owner’s personal tax return, following personal tax rates.
WHEN DO I KNOW I NEED TO HIRE AN ACCOUNTANT FOR MY BUSINESS? It’s best to set a strong financial foundation from the start. Hiring an accountant early ensures bookkeeping and accounting transactions are recorded properly throughout the year. Avoiding last-minute tax filings helps prevent errors and missed deductions.
BOOKKEEPER VS ACCOUNTANT – WHAT'S THE DIFFERENCE? Bookkeepers record financial transactions, handle bank/credit card reconciliations, file GST/QST, and prepare year-end reports. Accountants manage tax filings, prepare financial statements, and handle incorporation tax returns (Federal T2, Provincial CO17). They also provide financial consulting and forecasting.
HOW OFTEN SHOULD I DO MY BOOKKEEPING? While bookkeeping can be done at any frequency, regular updates are recommended. Recording revenue and expenses frequently ensures accuracy and keeps business activity fresh in the owner’s mind.
WHAT BUSINESS RETURNS DO I NEED TO FILE? Corporate Tax & Financial Statements – Due six months after the fiscal year-end. GST/QST Filing – Frequency depends on registration: - Monthly: File the prior month's GST/QST by the last day of the current month (e.g., November's return is due December 31st). - Quarterly: File the previous three months by the last day of the following month (e.g., Q1 return from January–March is due April 30th). - Annually: A three-month grace period applies (e.g., January–December filings are due between April 1st and 3rd).
WHY IS RECONCILING BUSINESS ACCOUNTS IMPORTANT? Recording transactions in a general ledger is only the first step of bookkeeping. Reconciliation ensures company accounts balance with bank and credit card statements. This process helps maintain financial accuracy and prevents errors in reporting.