Quebec Child Care Tax Credit Question...

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
webcite_99
Posts: 46
Joined: Fri Feb 18, 2005 8:45 pm

Quebec Child Care Tax Credit Question...

Post by webcite_99 » Mon Apr 13, 2009 9:21 pm

In the Montreal Gazette a few eeks ago, an article appeared regarding amendments to the refundable tax credit for child care. The article stated: "...for those paying $25 a day per child, it's now pretty much a wash, even if household income is as much as $125,000, because the government has raised the annual fee ceiling for a child under 7 to $9,000 from $7,000 and enhanced the applicable percentages."

Question: What happens if the household income exceeds $125,000? is there some phase out or is it iliterally all or nothing at exactly that threshold? It seems illogical that if you make $125,001 you lose all credits, but this is Quebec and i have been unable to find the answer any where else. If there is a phase out above $125,000 where can one find it and when does it completely phase out?

Thanks in advance.
Webcite

nelsona
Posts: 16589
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Tue Apr 14, 2009 12:48 am

The "phase-down" of the credit already occurs at a figure much below 125K. I call it a phase-down since the credit never goes below 25% of the max allowed regardless of income. This is not changing, other than various min/max points.

The 125K figure was the govt's method of coming up with the point at which various enhanced credits/deductions are 'neutral' in comparison to past years. Those making less than this will see an increased benefit under the new rules, those above will not.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Post Reply