In my case, when TurboTax gets the Federal return correct and it gets the Quebec return wrong, or vice-versa, as the 12 month period shifts.
Carry Forward data from the TurboTax 2017 return includes the 2017 premium paid under the Québec Prescription Drug Insurance Plan ($663.50 in my case). This amount is available to be imported into the 2018 TurboTax return when the 12 month period for medical expenses is shifted to include December 31, 2017. TurboTax applies this carried forward $663.50 deduction correctly in the 2018 Federal return as this amount eventually finds its way to line 330 of Schedule 1. However, in the Quebec return, the same $663.50 deduction does not find its way to line 36 of Schedule B, it is replaced by $0.00. It is impossible to force the software to edit the $0.00 to be $663.50 for the Quebec return, thus the deduction is lost in the Quebec return. I believe that this is a software bug. If I shift the 12 month period to start January 1, 2018 and end December 31, 2018, then TurboTax sets this deductible medical expense in the 2018 Quebec return to $641.50, which is the correct drug insurance premium paid in 2018. In conclusion, there appears to be no provision to carry forward the admissible Quebec drug insurance premium expense to the 2018 Quebec return as is already done correctly for the Federal return.
P.S. As I mentioned above, shifting the 12 month period to the 2018 calendar year (January 1, 2018 to December 31, 2018) forces TurboTax to set the prescription drug expense to the correct amount on the 2018 Quebec return, however the amount used in the 2018 Federal return remains the same as if the 12 month period started in 2017 and ended in 2018, which is a software flaw. In my particular case, the insurance plan premiums for both years are a few dollars apart so the impact on my tax bill is slight. But for other tax filers, whose drug premium expense changes drastically from one year to another, then the total Federal tax payable could be over or under calculated by up to $150 depending on individual's the marginal tax rate.
So to summarize the two software flaws:
(1) for the 2018 Quebec return, if the medical expense 12 month period spans from 2017 to 2018, in my case TurboTax substitutes $0.00 instead of $663.50 for the 2017 drug premium paid deduction.
(2) for the 2018 Federal return, if the medical expense 12 month period is all within one calendar year (2018), then TurboTax uses the (carried forward) 2017 drug insurance premium expense ($663.50) as the 2018 medical deduction instead of using the latest available drug insurance premium ($641.50) that was paid for 2018.
Thank you for your very detailed comments.
Your current year RAMQ contribution should show as medical expense in your current year Québec return versus your previous year RAMQ contribution will show in your current year Federal return.
The Federal guide simply states that RAMQ contributions can be claimed without referring to which year’s RAMQ contributions apply with regard to when the 12 month period starts.
Lynda, like you suggest, TurboTax uses in the 2018 Federal report the 2017 RAMQ contributions (carried forward from the 2017 TurboTax database) and TurboTax uses in the 2018 Quebec report the freshly calculated 2018 RAMQ contributions, but only when the 12 month period for medical expenses starts on January 1, 2018.
Since we had unclaimed medical expenses from November 2017, we chose the 12 month period start date to be November 16, 2017 (end date November 15, 2018), but TurboTax set the RAMQ contributions on the QMED worksheet to be $0.00 instead of the correct amount, which I could not override.
Shifting the start date back to January 1, 2018 caused the 2018 RAMQ contribution to appear on the QMED worksheet, but this is not the start date we needed, so I had to find a workaround to work with a start date of November 2017.
My workaround was to zero out the 2017 RAMQ contributions which were part of the carry forward data from our 2017 TurboTax report and then to create a false medical bill equivalent to the 2017 RAMQ contribution in the list where normal medical expenses are recorded.
The consequence was that an equivalent amount to the erased 2017 RAMQ contribution was applied to the 2018 Federal report, which is what TurboTax always intended regardless of when the 12 month period starts, and the same equivalent amount to the 2017 RAMQ contribution was applied to the 2017 Quebec report which is what the Quebec tax guide dictated for cases when the start date of the 12 month period occurs in 2017. So my workaround appears to succeed.
However, for other tax filers where there is a major difference between 2017 and 2018 RAMQ contributions due to changing jobs or retiring, if their 12 month period start date is in 2017, then this workaround will not help them.
I believe that the problem I faced is due to a software bug which I reported to Intuit, who agreed to correct it and to also report the bug's existence to the tax authorities.
The key question is when are RAMQ contributions deemed to be paid? From Revenue Quebec's point of view, the 2018 RAMQ contributions are considered an expense generated on the last day of 2018 tax year, thus they can be claimed on the Quebec report when the 12 month period includes December 31, 2018. While the Federal tax guide is not as precise as the Quebec guide, I believe that the CRA intended that the 2018 RAMQ contributions be applied to the 2018 Federal tax report only when the 12 month period starts on January 1, 2018 and ends on December 31, 2018. But the CRA appears to be flexible in determining the date when RAMQ contributions are deemed to be paid, which could also be interpreted as being the date when the Quebec resident receives their notice of assessment for tax year 2018 (June 2019 for example).
Hello! According to the TP1 guide, the premium payable under the Québec prescription drug insurance plan for 2019, provided December 31, 2019, is included in the period of 12 consecutive months used to determine the amount of medical expenses is an eligible medical expenses in 2019.
Yes it is very clear but Turbo tax chooses the date of the last medical receipt entered as the default date for optimizing and then enters 0.00 as the amount for Quebec Drug Insurance. I had to force the date to Dec 31 to get the right amount entered. Thanks to the original poster for this top which added $100 to my refund.