Tax Credit for Career Extension
The tax credit for career extension is a non-refundable tax credit created to encourage workers age 60 or over to continue working or rejoin the workforce. It reduces the income tax payable on the part of your eligible work income that exceeds $5,000.
If you are a retiree thinking about rejoining the workforce, you can use the Work Income Kept on Retirement calculator on the Ministère des Finances website to help you make an informed decision.
To be eligible, you must be:
- resident in Québec on December 31, 2021
- 60 or over on December 31, 2021
The maximum tax credit is the least of the following:
- 15% of the part of your eligible work income that exceeds $5,000
- $1,500 if you were between 60 and 64 on December 31, 2022
- $1,650 if you were 65 or over on December 31, 2022
The credit is reduced on the basis of your eligible work income. If your eligible work income for 2022 was over $36,590, the credit is reduced by 5% of the excess income. However, there is no reduction if you were born before January 1, 1951, and your credit is $600 or less.
The table below shows the maximum tax credit based on your age on December 31.
You are not eligible for the credit if your work income is equal to or greater than the applicable maximum.
|Age on December 31, 2022||Maximum tax credit||Minimum eligible work income||Maximum eligible work income||Reduction threshold|
|60 to 64||$1,500||$5,000||$66,590||$36,590|
|65 or over||$1,650||$5,000||$69,590||$36,590|