2021 updates for TP1

Applies to form TP-350.1, TP1 line 236

• Northern residents will now be able to claim a deduction even if they didn’t receive a taxable benefit from their employer.
• Northern residents have now a choice in either selecting the taxable benefit or a lump sum when calculating their deduction:
  • $1,200 for Northern zone
  • $600 for an intermediate zone

Tax credit- TP1 line 462

• The tax credit for respite of caregivers has moved from TP1O to TP1H and is no longer dependent on the income. (line 462, code 21). 2020 was a transition year when taxpayers could have claimed this credit either on TP1O or TP1H.
• The RL-23 form is removed (previously this calculated on line 462, code 20).

Advance payments of tax credits- TP1 line 441

• On the RL-19 form a new box H was added for advance payments of the tax credit for caregivers. This amount calculates on line 441.

Applies to TP1 line 415

• For non-eligible dividends, the rate has changed from 4.77% to 4.01% of taxable dividends. The rate for eligible dividends is unchanged at 11.7% of taxable dividends.

Applies to form TP1029.SA, TP1 line 463

• The credit for eligible individuals is a maximum of $400, which is an increase from $206 in 2020
• The credit for a couple where both are eligible is a maximum of $800, which is an increase from $412 in 2020

Applies to form RL-26, TP1 line 422

• The rate of the tax credit for the acquisition of Capital régional et coopératif Desjardins shares went from 35% to 30% for shares acquired after February 28, 2021. There will be 2 possible rates for year 2021 (35% and 30%), but the credit should already be calculated on the RL-26 based on when the purchase was done.
• In regard to the tax credit for the exchange of Capital régional et coopératif Desjardins shares, 2 new conversion periods have been added. The first starts on March 1, 2021, and ends on February 28, 2022. The second starts on March 1, 2022, and ends on February 28, 2023.

Applies to form TP-1029.8.33.6, TP1 line 462

The base rates for the tax credit for an on-the-job training period have been increased for qualified expenditures incurred after March 25, 2021, but before May 1, 2022, in respect of a qualified training period beginning after March 25, 2021. For more information, see the Notes section at the bottom of the form.

Applies to form TP1K, TP1 line 447

Premium increases:

• Jan 1 - Jun 30, 2021: from $648 to $662
• Jul 1 - Dec 31, 2021: from $662 to $710
• Max premium for 2021: $686

The taxpayer doesn't have to pay a premium if the following situations apply to them:

• They did not have a spouse on December 31, 2021, and the amount on line 275 of their return is $16,940 or less.
• They had a spouse on December 31, 2021, and the amount on line 275 of their return plus the amount on line 275 of their spouse’s return totals $27,460 or less.
• They were born before January 1, 1956, and the total of their monthly Guaranteed Income Supplement (GIS) payments is at least 94% of the maximum for the year calculated without the top-up benefit.

Income

*Line 151 was removed in 2021. As a consequence, line 32 on TP1F was removed.

Repayments

Tax credit for childcare expenses

Applies to form TP1C, line 455

• Certain child care expense limits have been increased
• Under a temporary measure in effect only for 2020 and 2021, taxpayers may be eligible for the tax credit for childcare expenses if they received Employment Insurance or COVID-19 benefits. There is a new box 18 on TP1C for this purpose.
• The tax credit rate range has increased from 62%–75% in 2020 to 67%–78% in 2021.

Disability supports deduction

Applies to form TP-358, line 250 (point 7)

• Under a temporary measure in effect only for 2020 and 2021, the eligibility requirements for the disability supports deduction have been relaxed because of the ongoing COVID-19 crisis.
• If the taxpayer has a disability and they received Employment Insurance benefits (including benefits related to a birth or adoption), Québec parental insurance plan benefits or COVID-19 benefits, they may be able to deduct some of their disability supports expenses. This amount will now appear on line 6.1 under Earned income.