Schedule E: Tax Adjustments and Credits

What’s in this article?

 

What is this?

Schedule E is used to make Revenu Québec tax adjustments and claim certain tax credits. The following tax adjustments and credits are available on Schedule E:

  • Tax adjustment for single payment
  • Foreign tax credit
  • Tax credit for the beneficiary of a designated trust
  • Alternative minimum tax
  • Alternative minimum tax carry-over
  • Deduction for logging tax
  • Property tax refund for forest producers

 

Am I eligible?

Complete Schedule E if you are a resident of Québec and need to make tax adjustments or claim the tax credits listed below.

Note: H&R Block’s tax software automatically calculates amounts for certain fields on your Schedule E based on the information and amounts you have entered on other forms and schedules. These include the Foreign tax credit, Alternative minimum tax, and Alternative minimum tax carry-over fields.

  • Tax adjustment for single payment: If, in the year, you received a single payment under a pension plan or a deferred profit-sharing plan, you can enter a tax adjustment for the portion accrued to December 31, 1971. You must contact Revenu Québec to determine the tax payable on such income and complete Part A of Schedule E.
  • Foreign tax credit: If you paid income tax to the government of a foreign country, you can claim a tax credit on your foreign business or non-business income. To be able to claim this tax credit, you must meet both of the following conditions:
    • You must be a resident of Québec on December 31, 2015, or on the date you ceased to reside in Canada in 2015; and
    • You must have paid income tax to the government or a political subdivision of a foreign country, or paid a similar contribution to certain international organizations, on the income in question.

Complete form TP-772-V: Foreign tax credit on Revenu Québec's website to calculate the tax credit and transfer the amount calculated on Line 90 of the form to Schedule E

Important: To see the field to enter your calculated foreign income tax credit on Schedule E, you must have completed the form Foreign employment income under the EMPLOYMENT icon of the PREPARE tab OR Foreign interest and dividends under the RRSPS AND INVESTMENTS icon of the PREPARE tab.

Note: Your foreign tax credit on non-business income cannot be more than the result of the following calculation: the total foreign income tax paid on your non-business income, minus the foreign tax credit granted by the Canada Revenue Agency on that income.

  • Tax credit for the beneficiary of a designated trust: If you are the designated beneficiary of a designated trust and you are including amounts from lines 15 and 16 from form TP-671.9-V in your income, complete Part A of Schedule E. Note that, form TP-671.9-V is not available in H&R Block’s tax software. Click this link to complete form TP-671.9-V.
  • Deduction for logging tax: If you carried out logging operations in Québec, you can deduct one third of the amount of logging tax you paid to the Minister of Revenue of Québec when you filed form TPZ-1179-V:Logging Operations Return. Transfer the amount calculated to Part B of Schedule E. Note that, form TPZ-1179-V is not available in H&R Block’s tax software. Click this link to complete form TPZ-1179-V.
  • Property tax refund for forest producers: If, in the year, you were a certified forest producer under theSustainable Forest Development Act, were actively engaged in developing your woodlots and held a valid certificate issued by the Minister of Energy and Natural Resources, you can claim a refund for each assessment unit listed on your certificate. The entire portion of the unit that is a forest area must be registered with the Ministère de l’Énergie et des Ressources naturelles. To claim this tax credit, complete Part C of Schedule E.

Revenu Québec says…

To be entitled to the refund, you must have a report from a forest engineer listing your eligible development expenses (within the meaning of the Regulation respecting the reimbursement of property taxes of certified forest producers) for 2015, or you must have such expenses in reserve. The amount of the expenses must be equal to or greater than the amount of property taxes that can be refunded.

The eligible expenses you incurred to develop your woodlots must be recorded in a forest engineer’s report. These eligible development expenses can be carried forward for ten years and can be claimed in any of the next ten years, provided you were entitled to a property tax refund for the year in which you incurred the expenses. If you were not entitled to the property tax refund in the year in which you incurred expenses, these can be carried forward:

    • Over two years if the expenses were incurred before January 1, 2014;
    • Over five years if the expenses were incurred after December 31, 2013.

Note: The value of the land and the total value of the unit are the values stated on the assessment roll in effect for the fiscal period of a municipality or school board.

 

Where can I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, ensure that you told us that you lived in QUÉBEC on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME
  2. Click the ABOUT YOU icon, and click the Your residence You will find yourself here:

Once you have confirmed your residence location, complete Schedule E by following these steps:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:

     

  3. Under the OTHER DEDUCTIONS heading, click the checkbox labelled Tax adjustments and credits (Schedule E).
  4. Scroll to the bottom of the page and click Continue.

When you arrive at the page for Tax adjustments and credits (Schedule E), enter your information into the tax software.

 

Where can I learn more?