Schedule P: Tax Credits Respecting the Work Premium

What’s in this article?

 

What is this?

The Schedule P is used to claim tax credits such as the work premium, the adapted work premium, and the supplement to the work premium. The work premium is a refundable tax credit designed to encourage Québec residents to join or stay in the labour market.

The amount you are entitled to under the work premium is based on your and your spouse’s income (if applicable) and your family situation (such as if you are a single-parent family, or a couple with or without children).

If you are entitled to the work premium, you may also be entitled to the adapted work premium or the supplement to the work premium.

You can use Schedule P to claim the tax credits with respect to the work premium when filing your tax return. Alternatively, you can apply for advance payments. Click this link for more information on applying for advance payments of the work premium.

 

Am I eligible?

Use Schedule P to claim tax credits related to the work premium if you meet these main conditions:

  • You were resident in Québec on December 31;
  • You are a Canadian citizen, an Indian under the Indian Act, a permanent resident, or a person on whom Canada has granted refugee protection;
  • You were at least 18 on December 31 (if you were not 18, you must have either had a spouse on December 31, been the father or mother of a child who lives with you, or been recognized as an emancipated minor by a competent authority);
  • You did not transfer to your father or mother an amount as a child 18 or over enrolled in post-secondary studies;
  • No one received a child assistance payment from the Régie des rentes du Québec with regard to you, unless you reached the age of 18 before December 1 of the year for which you are claiming the premium; and
  • No one designated you as a dependent child to claim a tax credit respecting the work premium.

You are entitled to the work premium if you meet all of the above conditions and the following:

  • You or your spouse on December 31, if applicable, are reporting, for the purposes of calculating the work premium, employment income, a research grant, Wage Earner Protection Program (WEPP) payments or income from a business that was carried on by you or your spouse (or both of you), either independently or as a partner actively engaged in the business;
  • Your annual work income is over the amounts specified by Revenu Québec; and
  • Your annual family income is less than the amounts specified by Revenu Québec.

You are entitled to the adapted work premium if you meet all of the conditions listed above and one of the following:

  • During the year or in one of the last five years, you or your spouse received an allowance under the Social Solidarity Program because of a severely limited capacity for employment.
  • For the year, you or your spouse are entitled to the amount for a severe and prolonged impairment in mental or physical functions. 

You are entitled to the supplement to the work premium if you meet the main conditions listed above and the following:

  • You received last-resort financial assistance or financial assistance under theAlternative jeunesse program during at least 36 of the 42 months preceding the month you ceased to receive the assistance because you or your spouse earned work income;
  • The month in question is included in a period of transition to work;
  • In the first month in which you were no longer eligible for the Social Assistance Program or the Social Solidarity Program, you held a claim booklet issued by the Ministère du Travail, de l'Emploi et de la Solidarité sociale that entitled you to certain dental and pharmaceutical services (unless you received financial assistance under the Alternative jeunesse program); 
  • Your work income is at least $200 for the month for which you are claiming the supplement to the work premium.

Note: You cannot claim any of the tax credits respecting the work premium, if you were confined to a prison or similar institution on December 31, or you spent more than six months there in the year.

 

Where do I claim this?

There is no need for you to manually claim Schedule P. If you qualify for the credit, it will be automatically calculated and included in your tax return by our H&R Block tax software.

 

Where can I learn more?