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Quebec will tax child-care benefit [CA-QC]

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Author: 
Richer, Jocelyn
Format: 
Article
Publication Date: 
3 May 2006
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EXCERPTS

The $1,200 federal child-care benefit included in the Conservative budget will be considered taxable income in Quebec as it is in the rest of the country, says Finance Minister Michel Audet.

In its Tuesday budget, the federal government included a $100 a month payment for parents for each child less than six years old.

Federally and throughout the rest of the provinces, the child-care benefit will be included as taxable income.

...

As such, the financial boost the government of Prime Minister Stephen Harper had in mind for parents could be a financial boost for the Quebec government, putting up to $120 million more in provincial coffers each year.

The child-care benefit, worth a total of $3.7 billion over two years throughout Canada, will not trigger reductions to the Canada Child Tax Benefit or the GST credit.

Nor will it affect the amount parent can deduct for child-care expenses.

But the $1,200 payments are taxable at the rate of the lower-income parent.

...

- reprinted from the Canadian Press

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