Work Premium Tax Credit

OVERVIEW OF WORK PREMIUM TAX CREDITS

Work premium tax credits are refundable tax credits that are intended to encourage you to enter or remain in the workforce.

If you are eligible for the work premium, you may also be eligible for the work premium supplement.

The adapted work premium, on the other hand, may be more favorable if you or your spouse has a severely reduced capacity for working.

Keep In Mind:

You no longer need to claim work premium tax credits because they are now paid automatically. However, you should complete Schedule P and attach it with your return to ensure that you receive the entire amount you are entitled to.

Criteria for eligibility of WPTC

You must fulfill all of the following basic conditions to earn any of the work premium tax credits for a particular year:

You were a resident of Québec on December 31st of the previous year and:

1. A citizen of Canada.
2. An Indian, to be precise.
3. A long-term inhabitant.
4. A person who has been granted refugee status by Canada.

You were 18 or older on December 31st of the previous year. If you were under the age of 18, you may still be eligible if you met the following criteria:

• On December 31, you married.
• You are the father or mother of a kid who lives with you, or you are the father or mother of a child who lives with you.
• A competent authority has acknowledged you as an emancipated minor.

You (or your spouse on December 31) are submitting the following information:

1. Earnings from work.
2. A grant for research.
3. Payments from the Wage Earner Protection Program (WEPP).
4. Income from a business that you and/or your spouse ran, either alone or with a partner who was actively involved in the business.
5. You did not give your father or mother any money when you were 18 years old and enrolled in post-secondary courses (line 20 of Schedule S for the year).
6. Unless you turned 18 before December 1 of the year, no one from Retraite Québec got the family allowance in your name.
7. For the purposes of the work premium or adapted work premium, no one recognized you as a dependent kid.
8. You weren’t a full-time student at the time (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).

Keep in Mind:

If you were incarcerated in a prison or similar facility on December 31 of the year in question and were incarcerated for more than 183 days throughout the year, you are ineligible for any labor premium tax credits.

If you fulfill all of the criteria listed above, continue reading to discover if you qualify for the tax credits.

Aditional Criteria for Work Premium Tax Credit

Aditional Criteria for Adapted Work Premium Tax Credit

You must also fulfill at least one of the following criteria:

1. Because of a severely reduced ability for employment, you or your spouse got a Social Solidarity Program allowance during the year or one of the previous five years.
2. You or your spouse are eligible for the amount for a severe and long-term impairment in mental or physical functions for the year (provided you have submitted a Certificate Respecting an Impairment [form TP-752.0.14-V] or a copy of a Disability Tax Credit Certificate [federal form T2201]).

Aditional Criteria for Suplement for Work Premium Tax Credit

If you fulfill all of the following conditions in addition to the baseline requirements, you may be eligible for the supplement to the work premium:

1. You’re claiming the supplement for a month that falls inside your transition to work period.
2. During at least 24 of the 30 months immediately preceding the commencement of the period of transition to work, you received last-resort financial support or financial aid under the Youth Alternative Program or the Aim for Employment Program;
3. For the first month of your transition to work, you had a claim booklet from the Ministry of Labor, Employment, and Social Solidarity that allowed you to access some dental and pharmaceutical treatments (unless you received financial assistance under the Youth Alternative Program for the month before you began your transition to work).
4. For the month in which you are claiming the supplement to the work premium, your job income must be at least $200.

How to Claim the Work Premium Tax Credit?

Work premium tax credits may be available if you fulfill the eligibility conditions. You may get them by doing the following:

1. When you submit your tax return, make sure you fill out Schedule P. To ensure you get the entire amount you’re entitled to.
2. Make an application for advance payments.

Remember this:

Whether you claim the credit when you file your tax return or request for advance payments, the amount you are entitled to is the same. Your advance payments, on the other hand, will not cover the entire work premium to which you expect to be entitled for the year.

Splitting Adapted work premium or the work premium

On December 31, you and your spouse can share the work premium or adapted work premium to which you are both entitled. To do so, you’ll need to fill out your own Schedule P.

If you or your spouse got advance payments of the work premium on December 31. The individual who received them should claim it on his or her tax return.

If you receive an overpayment in a given year and are unable to repay it by the end of that year. The person who is deemed your spouse for work premium or adapted work premium purposes at the time will be jointly responsible for repayment.

Amount Payments And Advance Payments of Work Premium

Work premium tax credits are calculated depending on your work income, family income, and family status.

Work Premium Situation

Adapted Work Premium Situation

Supplement Work Premium Situation

How to Apply For Advance Payments?

For Work premiums and adapted work premiums

You have until October 15 to apply for a year’s worth of work premium and adapted work premium advance payments. Also You must apply by December 1. Of the year previous the year covered by your application to receive the whole amount in 12 installments.

You can apply for advance payments of the work premium or adapted work premium online through My Account for individuals or by mailing us a copy of form TPZ-1029.8.P-V, Work Premium Tax Credit: Application for Advance Payments, together with the relevant documentation.

Documents that are required

You must include a photocopy or electronic version of the following papers with your application:

1. Evidence showing you are a company owner.
2. A pay stub.
3. For a designated dependant under the age of two. The birth certificate issued by the Directeur de l’état civil or the attestation of birth issued by the hospital where the dependant was born.
4. The approval of a research grant.

For Supplement Work Premium

Fill out form TPZ-1029.8 to apply for advance payments of the work premium supplement. PS-V, Supplement to the Work Premium: Advance Payments Application. If you need a print copy of the form, please contact us at 514 873-4000. In Montreal or toll-free at 1 877 767-8773. You can also get one through a local employment center (CLE). Operated by the Ministry of Labor, Employment, and Social Solidarity. Send the properly filled form to a CLE, who will then forward it to us.

Remind:

If your spouse is also eligible for the supplement and wants to receive paids in advance. He or she must submit a separate application.

Cancelling payments made in advance

Call one of the following numbers. If you want them to cease depositing your advance payments of the all work premium:

1. (Québec City area) 418 659-6299
2. (Montréal region) 514 864-6299
3. Call them at (800) 267-6299. (toll free)