Taxation and Persons with Disabilities

Transcription

1 REVENU QUÉBEC Taxation and Persons with Disabilities

2 This publication is provided for information purposes only. It does not constitute a legal interpretation of the Taxation Act or any other legislation. ISBN Legal deposit Bibliothèque nationale du Québec, 2005 Legal deposit Library and Archives Canada,

3 Contents Introduction Personal income tax Impairment supports deduction Amount respecting a severe and prolonged mental or physical impairment Amount respecting dependent children or other dependants with an infirmity Medical expenses Expenses incurred to obtain medical services not available in your area Tax credit for child-care expenses Tax credit respecting the housing of a parent Premium payable under the Québec prescription drug insurance plan Home Buyers Plan (HBP) and Lifelong Learning Plan (LLP) Consumption taxes

4 Introduction If you have a disability, or if your spouse or a dependant has a disability, you will want to read this brochure to find out about the types of tax assistance available to you. The brochure is divided into two parts: 1. Personal income tax The first part summarizes the deductions and the refundable and non-refundable tax credits that may be claimed in the income tax return (general and simplified tax systems) with regard to a disabled person. 2. Consumption taxes The second part lists the property and services that, when supplied to a person with a disability, are exempt from the Québec sales taxes (QST) and the goods and services tax (GST). The presence of the pictogram in the margin indicates that the text refers to a form or an information document published by Revenu Québec. Québec s income tax systems Since 1998, Quebecers have filed their Québec tax returns under one of two systems: the general tax system; or the simplified tax system. Before completing your return for the 2004 taxation year, read the central pages of your Forms booklet to determine which tax system is best for you. For further information about the various types of tax assistance discussed in this brochure, consult the income tax guide (TP-1.G-V). A copy of the guide is available on the Web site of Revenu Québec at 5

5 Personal income tax The table below shows the type of tax assistance (deductions and tax credits) that you may be able to claim, and indicates the lines of the tax return on which to claim them. Amount Type of tax assistance Line of the income tax return Impairment supports Deduction Line 250 deduction Amount respecting a Non-refundable Line 376 severe and prolonged tax credit mental or physical impairment Amount transferred Non-refundable Line 386 by a dependant, tax credit respecting a severe and prolonged mental or physical impairment Amount respecting Non-refundable Line 367 dependent children or tax credit other dependants with an infirmity Medical expenses Non-refundable Line 381 tax credit Refundable Line 462 tax credit Expenses incurred Non-refundable Line 378 to obtain medical tax credit services not available in your area Tax credit for Refundable Line 455 child-care expenses tax credit Tax credit respecting Refundable Line 462 the housing of tax credit a parent 6

6 Impairment supports deduction You may deduct impairment supports expenses if these expenses allowed you to carry out employment duties; actively carry on a business; do research or similar work for which you received a grant; or attend a designated educational institution or a secondary school. If, under other circumstances, you paid for the services of an attendant, consult the section Medical expenses on page 10. If you wish to claim the impairment supports deduction, you must complete the form Impairment Supports Deduction (TP V) and enclose it, along with the receipt issued by the payee, with your return. For further information, consult the section of the income tax guide pertaining to line 250 (point 7). Amount respecting a severe and prolonged mental or physical impairment A person is considered to have a severe mental or physical impairment if the person is markedly restricted in his or her ability to carry out a basic activity of daily living. This means that, all or substantially all of the time, even with therapy and the appropriate devices and medication, the person is blind or is unable (or requires an inordinate amount of time) to carry out a basic activity of daily living. The basic activities of daily living are as follows: speaking; hearing; walking; eliminating; feeding oneself; dressing oneself; perceiving; thinking; and remembering. 7

7 Remunerated work, social activities, recreational activities and housekeeping are not considered to be basic activities of daily living. Feeding oneself does not include the activities of identifying, finding, shopping for or otherwise procuring food. Nor does it include the activity of preparing a meal, if the time spent on this is because of a dietary restriction or a regime. Dressing oneself does not include the activities of identifying, finding, shopping for or otherwise procuring clothing. A severe mental or physical impairment is considered to be prolonged if it has lasted, or may reasonably be expected to last, for a continuous period of at least 12 months. If you have a severe and prolonged mental or physical impairment, you can claim an amount of $2,200. This amount may also be claimed if you require, because of a chronic illness, therapy prescribed by a physician that is essential to the maintenance of your vital functions at least twice a week (for a total of 14 hours or more per week). This includes travel time; medical examinations; and recuperation time after a treatment. If one of your dependants is entitled to this amount, but does not use all of it to reduce his or her income tax to zero, you may be able to claim the unused portion in your own return. For further information, consult the section of the income tax guide pertaining to line 386 ( Amount transferred by a dependant, respecting a severe and prolonged mental or physical impairment ). As a rule, you must enclose with your income tax return a copy of form TP V, Certificate Respecting an Impairment, completed by a physician, an optometrist, an audiologist, a speech therapist (speech-language pathologist), an occupational therapist, or a psychologist, as applicable. However, persons who are filing the certificate for the first time may submit it to Revenu Québec as soon as it has been completed by a medical practitioner. 8

8 If you have already filed the certificate, do not file another one unless your health has improved since the time of filing or Revenu Québec requests that a new form be filed. Please note that a person who receives a disability pension or similar benefits is not necessarily considered to be a person with a severe and prolonged mental or physical impairment. For further information, consult the sections of the income tax guide pertaining to lines 376 and 386. Amount respecting dependent children or other dependants with an infirmity You may generally claim a basic amount of $2,765 for a dependent child under 18 years of age and $2,550 for each additional dependent child under 18. In the case of a person aged 18 or over (other than your spouse) who was your dependant because of a mental or physical infirmity, you may claim a basic amount of $2,550 and an additional amount of $3,725. In either situation, you may be entitled to an amount even if the dependant with an infirmity did not live with you. A dependent child may be your or your spouse s child, grandchild, brother, sister, nephew, niece; or your brother-in-law or sister-in-law (that is, your brother s or sister s spouse, your spouse s brother or sister, or the spouse of your spouse s brother or sister). The term other dependant includes your or your spouse s father, mother, grandfather, grandmother, uncle or aunt. It does not include your spouse. For further information, consult the section of the income tax guide pertaining to line

9 Medical expenses There are two possible tax credits respecting medical expenses, one refundable, the other non-refundable. A. Amount for medical expenses (line 381) You may claim this non-refundable tax credit for the portion of your eligible medical expenses that exceeds 3% of your income (and, where applicable, that of your spouse). The expenses must have been paid for you, your spouse or a dependant during a period of 12 consecutive months. Be sure to keep your receipts. Eligible medical expenses include payments made under the Québec prescription drug insurance plan (including the premium entered on line 447) or a private health insurance plan, amounts paid to a dentist or a nurse, and amounts paid for prescribed devices or equipment. Under certain conditions, remuneration paid to an attendant for home care or amounts paid for residence in a nursing home are also eligible; however, such expenses may limit your entitlement to the amount respecting a severe and prolonged mental or physical impairment. For a list of eligible medical expenses, see the brochure Medical Expenses (IN-130-V), which is published by Revenu Québec. B. Refundable tax credit for medical expenses (line 462) The refundable tax credit is determined on the basis of your medical expenses and your income (and, where applicable, the income of your spouse). To qualify for the credit, your work-related income for the year must be at least $2,500. Work-related income includes income supplements received under a government work-incentive project if you included the amounts in the calculation of your income. For further information, consult the sections of the income tax guide pertaining to lines 381 and 462 (point 1). 10

10 Expenses incurred to obtain medical services not available in your area You may, under certain conditions, claim a tax credit for the expenses you paid for yourself, your spouse or a dependant, in order to obtain medical services that were not available in your area. The eligible expenses are travel expenses, accommodation expenses and moving expenses. To claim this tax credit, you must enclose with your income tax return a copy of form TP V, Expenses Incurred to Obtain Medical Services Not Available in Your Area, along with your receipts. For further information, consult the section of the income tax guide pertaining to line 378. Tax credit for child-care expenses You may be entitled to a refundable tax credit for the child-care expenses you incurred with respect to your child or your spouse s child, if the child is a minor. No age limit applies if the child has an infirmity. The amount of the credit is determined on the basis of the expenses and your family income. Consult the section Amount respecting dependent children or other dependants with an infirmity on page 9. For further information, consult the section of the income tax guide pertaining to line

11 Tax credit respecting the housing of a parent You may claim a refundable tax credit if you housed a parent 60 years of age or older who had a severe and prolonged mental or physical impairment, and if you meet the requirements (such as the length of time the person lived with you). To claim this tax credit, you must enclose a copy of Schedule H with your tax return. For the purposes of this credit, the term parent may refer to your or your spouse s father, mother, grandfather, grandmother, great-grandfather, great-grandmother, uncle, aunt, great-uncle or great-aunt. If more than two parents lived with you, you must also enclose form TP V, Tax Credit Respecting the Housing of a Parent, and, if it has not already been filed, form TP V, Certificate Respecting an Impairment. For further information, consult the section of the income tax guide pertaining to line 462 (point 2). Premium payable under the Québec prescription drug insurance plan In certain cases, persons who have a functional impairment that has existed since before their 18th birthday are exempted from paying the premium under the Québec prescription drug insurance plan. For further information, consult the section of the income tax guide pertaining to line 447. Home Buyers Plan (HBP) and Lifelong Learning Plan (LLP) Certain tax rules governing the HBP and the LLP have been relaxed with respect to amounts that are withdrawn from a registered retirement savings plan (RRSP) for the benefit of a person with a severe and prolonged mental or physical impairment. For further information, contact the Revenu Québec office in your area. You will find a list of these offices at the end of this brochure. 12

12 Consumption taxes You are not required to pay QST or GST on the following property and services: certain medical and functional devices that are required by persons with disabilities. These include hospital beds supplied under a prescription, wheelchairs, walkers, hearing aids, contact lenses, prescription glasses, and guide dogs for the blind or for persons with a hearing impairment; most homemaker services provided to an individual in his or her place of residence and subsidized by a government, a municipality or an organization administering a governmental or municipal homemaker service. Such services include household and personal services such as cleaning, laundering, meal preparation and child-care services provided to an individual who, due to an infirmity or a disability, requires assistance; health-care services provided to an individual, at home or at a health-care institution, by a registered nurse or nursing assistant; prepared meals provided to an individual in his or her place of residence under a program for persons with disabilities operated by a government, municipality, non-profit organization, charity or other public sector body; personal care and supervision services, where they are provided principally in the establishment of the service provider to a person who has a limited capacity for self-supervision and self-care due to an infirmity or disability. Such services include, for example, services provided to a person with a disability who is taken to an establishment for daytime or overnight care over a short period; recreational programs for persons with disabilities, offered to individuals of all ages by a government, municipality, nonprofit organization, charity or public sector body. These include, for example, recreational or sports programs provided on an ongoing basis at a community centre, and board and lodging at recreational or sports camps. 13

13 Please note that a person who has a disability is entitled to a rebate of the following taxes: the QST and the GST paid on the portion of the purchase price of an adapted motor vehicle that covers the cost of adapting the vehicle (a new motor vehicle or one that has never been operated between the time it was adapted and the time it is purchased by the person who has a disability); the QST (but not the GST) paid on the cost of purchasing and installing an automatic door opener to be used where the person is unable, because of a physical disability, to enter his or her residence without assistance. For further information, consult the brochure The QST and the GST/HST: How They Apply to Medical Devices and Drugs (IN-211-V). 14

14 More offices to serve you better Gatineau 170, rue de l Hôtel-de-Ville, 6 e étage Gatineau (Québec) J8X 4C2 (819) or Jonquière 2154, rue Deschênes Jonquière (Québec) G7S 2A9 (418) or Laval 4, Place-Laval, bureau RC-150 Laval (Québec) H7N 5Y3 (450) or Longueuil Place-Longueuil 825, rue Saint-Laurent Ouest Longueuil (Québec) J4K 5K5 (450) or Montréal Complexe Desjardins C. P. 3000, succursale Desjardins Montréal (Québec) H5B 1A4 (514) or Village Olympique, pyramide Est 5199, rue Sherbrooke Est, bureau 4000 Montréal (Québec) H1T 4C2 (514) or Les Galeries Saint-Laurent 2215, boulevard Marcel-Laurin Saint-Laurent (Québec) H4R 1K4 (514) or Québec 200, rue Dorchester Québec (Québec) G1K 5Z1 (418) or Rimouski 212, avenue Belzile, bureau 250 Rimouski (Québec) G5L 3C3 (418) or Rouyn-Noranda 19, rue Perreault Ouest, RC Rouyn-Noranda (Québec) J9X 6N5 (819) or Saint-Jean-sur-Richelieu 855, boulevard Industriel Saint-Jean-sur-Richelieu (Québec) J3B 7Y7 (450) or Sainte-Foy 3800, rue de Marly Sainte-Foy (Québec) G1X 4A5 (418) or Sept-Îles 391, avenue Brochu, bureau 1.04 Sept-Îles (Québec) G4R 4S7 (418) or Sherbrooke 2665, rue King Ouest, 4 e étage Sherbrooke (Québec) J1L 2H5 (819) or Sorel-Tracy 101, rue du Roi Sorel-Tracy (Québec) J3P 4N1 (450) or Trois-Rivières 225, rue des Forges, bureau 400 Trois-Rivières (Québec) G9A 2G7 (819) or I Information service for persons with a hearing impairment Montréal Elsewhere in Canada We invite you to visit our Web site at Vous pouvez vous procurer la version française de cette publication en demandant le document Les personnes handicapées et la fiscalité (IN-133). IN-133-V ( )