Work Premium Tax Credits

The work premium tax credits are refundable tax credits designed to encourage you to join or stay in the labour market.

If you are entitled to the work premium, you may also be entitled to the supplement to the work premium.

However, if you or your spouse has a severely limited capacity for employment, the adapted work premium may be more advantageous for you.

Note

The work premium tax credits are now paid automatically, which means you do not have to claim them. However, to make sure you receive the full amount you are entitled to, you should complete Schedule P and enclose it with your return.

Eligibility requirements

To receive any of the work premium tax credits for a given year, you must meet all the following basic requirements:

  • On December 31 of the year, you were resident in Québec and:
    • a Canadian citizen,
    • an Indian,
    • a permanent resident, or
    • a person on whom Canada has conferred refugee protection.
  • On December 31 of the year, you were 18 or older. If you were under 18, you are still eligible if:
    • you had a spouse on December 31,
    • you are the father or mother of a child who lives with you, or
    • you have been recognized as an emancipated minor by a competent authority.
  • You (or your spouse on December 31) are reporting:
    • employment income,
    • a research grant,
    • Wage Earner Protection Program (WEPP) payments, or
    • income from a business that was carried on by you and/or your spouse, either independently or as a partner actively engaged in the business.
  • You did not transfer an amount as a child 18 or over enrolled in post-secondary studies to your father or mother (line 20 of Schedule S for the year).
  • No one received a child assistance payment from Retraite Québec with regard to you, unless you turned 18 before December 1 of the year.
  • No one designated you as a dependent child for purposes of the work premium or adapted work premium.
  • You were not a full-time student (if you were a full-time student, you are not entitled to the tax credits respecting the work premium unless you were the mother or father of a child living with you on December 31 of the year).
Note

You cannot receive any of the work premium tax credits if you were confined to a prison or similar institution on December 31 of the year in question and your confinement lasted more than 183 days in the year.

If you meet all the conditions above, read on to see whether you are entitled to the tax credits.

Work premium

You may be entitled to the work premium if, in addition to the basic requirements, you meet all of the requirements below:

  • Your annual work income is:
    • over $2,400 if you are a person living alone or a single parent,
    • over $3,600 when added to that of your spouse, whether or not you have any children
  • Your annual family income is less than the appropriate amount from the following table:

    Family situation Maximum family income to be eligible for the work premium – 2018 taxation year
    Person living alone $18,257.56
    Couple without children $28,346.64
    Single parent $35,096.00
    Couple with at least one child $48,246.00
Note

If you designate a dependent child, he or she must be under 18 or, if he or she is 18 or over, he or she must be enrolled in vocational training at the secondary level or in a post-secondary program.

Adapted work premium

You may be entitled to the adapted work premium if, in addition to the basic requirements, you meet both of the requirements below:

  • Your or your spouse's annual work income is over $1,200.
  • Your annual family income is less than the appropriate amount from the following table:
Family situation Maximum family income to be eligible for the adapted work premium – 2018 taxation year
Person living alone $27,599.04
Couple without children $40,777.16
Single parent $44,376.00
Couple with at least one child $56,682.00
Note
  • If you designate a dependent child, he or she must be under 18 or, if he or she is 18 or over, he or she must be enrolled in vocational training at the secondary level or in a post-secondary program.
  • If you are entitled to both the work premium and the adapted work premium, you will receive the greater of the two.

You must also meet one of the following requirements:

  • During the year or in one of the last five years, you or your spouse received an allowance under the Social Solidarity Program because of a severely limited capacity for employment.
  • For the year, you or your spouse is entitled to the amount for a severe and prolonged impairment in mental or physical functions (provided you have filed a Certificate Respecting an Impairment [form TP-752.0.14-V] or a copy of a Disability Tax Credit Certificate [federal form T2201]).
Supplement to the work premium (for former recipients of social assistance)

You may be eligible for the supplement to the work premium if, in addition to the basic requirements, you meet all of the requirements below:

  • You are claiming the supplement for a month that is included in a period of transition to work.
  • You received last-resort financial assistance or financial assistance under the Youth Alternative Program or the Aim for Employment Program during at least 24 of the 30 months immediately before the start of the period of transition to work;
  • In the first month in which you were no longer eligible for the Social Assistance Program or the Social Solidarity Program, you held a claim booklet issued by the Ministère du Travail, de l'Emploi et de la Solidarité sociale that entitled you to certain dental and pharmaceutical services (unless you received financial assistance under the Youth Alternative Program or the Aim for Employment Program).
  • Your work income is at least $200 for the month for which you are claiming the supplement to the work premium.

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