Payment of special taxes in Québec

What is in this article?

 

What is this?

You may have to pay special taxes on your Québec return if you received any of the following excess amounts during the year:

  • Québec education savings incentive (QESI):If the educational assistance payments (EAPs) you received included QESI amounts that were more than the $3,600 limit, you must pay a special tax equal to the excess QESI amount you received.
  • Registered education savings plan (RESP): If you are the subscriber under an RESP, or the subscriber's spouse, former spouse or heir, and you received RESP accumulated income payments, you have to pay a special tax. Your RESP accumulated income payments are identified by the code “RV” in the “Code (case O)” box of the RL-1 slip.
  • Non-purchase of replacement shares in a labour-sponsored fund:You have to pay a special tax if you redeemed your shares in a labour-sponsored fund in order to participate in the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP) but you did not purchase replacement shares by the prescribed deadline. Enter the amounts shown in boxes F, L1, and L2 of your paper RL-10 slip into the tax software.
  • Split income of a child:If you are 17 years of age or under and your income includes taxable dividends on unlisted shares or from a partnership or trust, you must pay a special tax. Income that is subject to this special tax may be shown on your paper RL-15 slip or your paper RL-16 slip.
  • Income-averaging annuity for artists:You must pay a special tax if you are reporting amounts on your return from an income-averaging annuity for artists and income tax was deducted at source from the annuity. You can find amounts from an income-averaging annuity in box C-9 of your paper RL-2 slip.

You may also have to pay special taxes if you received a tax credit for an on-the-job training period, a tax credit for the reporting of tips, or if you received an excess amount from a profit-sharing plan.

 

Where do I claim this?

Important: Before you begin, make sure you tell 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 tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, enter the excess Québec education savings incentive (QESI) amounts or other excess amounts on which you must pay special tax by following these steps:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:
  3. Under the MISCELLANEOUS section, select the checkbox labelled Payment of special taxes.
  4. Click Continue.
  5. When you arrive at the page for the Payment of special taxes, enter your information into the tax software.

To pay special taxes on RESP accumulated income payments follow these steps:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:
  3. Under the OTHER TYPES OF INCOME section, select the checkbox labelled Special tax relating to an RESP (TP-1129.64-V).
  4. Click Continue.
  5. When you arrive at the page for the Special tax relating to an RESP (TP-1129.64-V), enter your information into the tax software.

 

Where can I learn more?