Calculating the Tax Shield
The tax shield is calculated based on your family situation and household 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.
Splitting the tax credit
If you and your spouse on December 31 of the year covered by the claim want to split the tax shield, complete form TP-1029.BF-V, Tax Shield, to calculate the amount each of you will receive.