New for 2020
Deduction for expenses related to working remotely
If you worked from home because of the COVID-19 pandemic, you may be able to deduct some of your expenses. See point 10 in the instructions for line 207.
Incentive Program to Retain Essential Workers (IPREW)
If you received benefits under the Incentive Program to Retain Essential Workers, see the instructions for line 151.
Farm worker bonus
If you received a farm worker bonus under the IPREW, see point 2 in the instructions for line 154.
Canada Emergency Response Benefit, Canada Emergency Student Benefit and Canada recovery benefits
If you received the Canada Emergency Response Benefit, the Canada Emergency Student Benefit, the Canada Recovery Benefit, the Canada Recovery Sickness Benefit or the Canada Recovery Caregiving Benefit, see point 16 in the instructions for line 154. However, if you received Employment Insurance benefits under the Canada Emergency Response Benefit, see the instructions for line 111.
Tax credit for childcare expenses
Effective January 1, 2020, what it means to be attending a qualified educational institution has changed for purposes of the tax credit for childcare expenses.
See the instructions for line 455.
Dividends from taxable Canadian corporations
Dividend tax credit
Effective January 1, 2020, to be entitled to the full tax credit for dividends received or deemed received in a given year, you must have been resident in Québec on December 31 of that year (or on the day you ceased being resident in Canada).
Rate of the dividend tax credit
On January 1, 2020, the rate of the dividend tax credit applicable to the actual amount of ordinary dividends went from 6.3825% to 5.4855%.
The rate of the tax credit applicable to the actual amount of eligible dividends went from 16.2564% to 16.1460%.
See the instructions for line 415.
Disability supports deduction
Expenses incurred after December 31, 2019, to obtain goods and services allowing you to take distance courses from a designated educational institution or a secondary school qualify for the disability supports deduction. See point 7 in the instructions for line 250.
Certifications and prescriptions for therapy by specialized nurse practitioners
Like physicians, specialized nurse practitioners can now issue certifications concerning expenses for medical services not available in your area (line 378) and certifications of dependent senior status for purposes of the tax credit for home-support services for seniors (line 458).
They can also prescribe therapy essential to the maintenance of a vital function covered by the amount for a severe and prolonged impairment in mental or physical functions (line 376).
Tax credit for taxi drivers and taxi owners
The new legal framework for remunerated passenger transportation that came into force on October 10, 2020, resulted in changes to the tax credit for taxi drivers and taxi owners.
- See point 3 in the instructions for line 462
Virtual currency transactions
Transactions using virtual currency (cryptocurrency, etc.) are generally considered barter transactions. The regular barter rules apply.
To report your income correctly, you must determine whether your use of virtual currency resulted in a capital gain (or loss) or business income (or loss).
Tax credit for interest on a loan granted by a seller-lender and guaranteed by La Financière agricole du Québec
The tax credit for interest on a loan granted by a seller-lender and guaranteed by La Financière agricole du Québec has been extended for five years. You may therefore be eligible for the credit if you received a loan under a contract signed after December 2, 2014, but before January 1, 2025. See point 30 in the instructions for line 462.
Tax credit for caregivers
The tax credit for caregivers now has two components. The first is for caregivers providing care to a person 18 or over who has a severe and prolonged impairment in mental or physical functions and needs assistance in carrying out a basic activity of daily living. The second is for caregivers providing care to and living with a person 70 or over.
See point 2 in the instructions for line 462.
Tax credit for volunteer respite services and tax credit for respite of caregivers
Because of the changes to the tax credit for caregivers, the tax credit for volunteer respite services and the tax credit for respite of caregivers were cancelled as of January 1, 2021. However, you can still claim them for the 2020 taxation year.
In addition, beginning in 2020, you may be able to receive an additional amount (which is not subject to a reduction based on your family income) for expenses paid to receive specialized respite services.
However, you cannot claim the tax credit for volunteer respite services or the tax credit for respite of caregivers in respect of an eligible care receiver for whom you are you are claiming the tax credit for caregivers.
Tax credit for career extension
Work Chart 391 has been replaced by form TP-752.PC-V, Tax Credit for Career Extension.
Québec prescription drug insurance plan
On July 1, 2020, the contribution rates for the Québec prescription drug insurance plan were increased. Consequently, the maximum premium has been raised from $636 to $648. The maximum premium for 2020 is therefore $642.
You do not have to pay a premium if any of the following situations apply to you:
- You did not have a spouse on December 31, 2020, and the amount on line 275 of your return is $16,660 or less.
- You had a spouse on December 31, 2020, and the amount on line 275 of your return plus the amount on line 275 of your spouse's return totals $27,010 or less.
- You were born before January 1, 1955, and the total of your monthly Guaranteed Income Supplement (GIS) payments is at least 94% of the maximum for the year calculated without the top-up benefit.
Full indexation of the tax system
A number of other amounts have been increased, including the following:
- the deduction for workers (line 201);
- the basic personal amount (line 350);
- the income thresholds at which certain tax credits are reduced;
- the amount for a person living alone (line 20 of Schedule B);
- the age amount (line 22 of Schedule B); and
- the basic exemption for calculating the contribution to the health services fund (Schedule F).