How do I know if I am eligible for a tax shield.

[ClaudiaN]

If you were resident in Quebec on December 31, 2020, and you or your spouse (if is applicable) are entitled either to the tax credit for childcare expenses, the work premium or adapted work premium, you will be eligible to claim tax shield, if you meet the following requirements in one of the next two situations:

• If you did not have a spouse:
  1. Your net income for the year is greater than the net income reported in 2019 return and
  2. Your eligible work income for 2020 is greater than 2019

• If you had a spouse:
  1. Your net family income for the year is greater than that for 2019 and
  2. Your or your spouse’s eligible work income for 2020 is greater than that for 2019  

If you meet the eligibility requirements, you can claim the tax shield by checking box 99 of Schedule C or box 5 of schedule P when you file your income tax return. Please visit TP-1029.BF-V to obtain an estimated calculation of your tax shield refundable amount.

Note that you may be eligible for the shield even if you were not entitled to any of the work premium tax credits. You may still be eligible if your 2020 income was high. You will just need to complete schedule P and enclose it with your tax return.

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