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Ministère des Finances du Québec

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Retroactive application of the reduction in the additional contribution
(updated March 17 2016)

The 50% reduction in the additional contribution for the second child in subsidized childcare applies retroactively for 2015. Parents must calculate their additional contribution without taking this reduction into account when filing their tax returns for 2015.

In this respect, Revenu Québec will implement the necessary measures to ensure that the parents concerned by this change can benefit from the reduction in their childcare rate for 2015.

  • Parents whose 2015 tax return is processed before March 17, 2016 will be reimbursed by Revenu Québec.
  • For other parents, Revenu Québec will reduce the additional contribution when processing their tax return and will inform them in the notice of assessment

Impact on the federal tax return

Childcare expenses paid in Québec are eligible for the federal deduction for childcare expenses. Since Revenu Québec will refund a portion of childcare costs after production of the federal income tax return, parents who have benefited from the federal deduction for childcare with regard to the additional contribution could have to contribute again for the 2015 tax year by the Canada Revenue Agency.

Substantial savings for families

Even considering a refund of a portion of the federal deduction for childcare expenses, the reduction in childcare expenses for a second child in subsidized childcare will result in substantial savings for these families.

For instance, a family with a $100 000 income could save $292 in childcare expenses for 2015, namely:

  • a $374 refund with respect to the childcare expenses paid for a second child;
  • a payment in their federal tax return of $82.
Illustration of the savings for a family with two equal incomes totalling $100 000 – 2015
(dollars)
  Additional contribution Federal assistance(1) Gain for the family
Full rate for the 2nd child 748 235
Half price for the 2nd child 374 153
Annual gain 374 −82 292
(1) Federal deduction for childcare applicable to the additional contribution. Including the impact on social fiscal transfers such as the Canada Child Tax Benefit.