Reporting employment income, advanced Canada workers benefit payments and work premium tax credit
Test your knowledge
Question 1
That's correct
Individuals who have received advance payments issued under the ACWB will receive a RC210 slip, Advanced Canada workers benefit (ACWB) statement. They must report these amounts on their tax return and keep a copy of the slip.
Sorry, that's incorrect
Individuals who have received advance payments issued under the ACWB will receive a RC210 slip, Advanced Canada workers benefit (ACWB) statement. They must report these amounts on their tax return and keep a copy of the slip.
Question 2
Sorry, that's incorrect
To receive the work premium tax credit, the individual must meet the eligibility requirements and complete Schedule P when filing their income tax return or applying for advance payments. If the individual chooses to claim the tax credit by advance payments, remember to complete Schedule P when filing their tax return and enter the amounts shown on the RL-19 slip they received.
That's correct
To receive the work premium tax credit, the individual must meet the eligibility requirements and complete Schedule P when filing their income tax return or applying for advance payments. If the individual chooses to claim the tax credit by advance payments, remember to complete Schedule P when filing their tax return and enter the amounts shown on the RL-19 slip they received.
Instructions
- Open the UFile CVITP software.
- Review the background information and slips required (tax slips, receipts, etc.). Enter all the necessary information into the required sections of the tax software.
- Once completed, compare your results with the solution provided.
- You don't have the same results? Consult the Reminder of key points of the tax software as needed.
- Check out the Takeaway points at the end.
| Category | Information |
|---|---|
| Family head | Louise Lambert |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 rue Principale City QC X0X 0X0 |
| Telephone number | 450-444-4444 |
| Date of birth (DOB) | April 22, 1980 |
| Marital status | Common-law partner: George Talbot since July 1, 2009 SIN: 000 000 000 DOB: November 4, 1978 |
| Dependant | Rafael Talbot (son) |
Details
- Louise, George and their child Rafael live in an apartment, but only Louise's name is on the lease
- Louise had private prescription drug insurance coverage for the last three months of the year. Her common-law partner was covered by Louise's insurance for the same period. They are therefore exempt from paying the Quebec prescription drug insurance plan premium for those three months
- Louise wishes to pay the Quebec prescription drug insurance plan premium for her partner
- Louise is claiming the solidarity tax credit and the tax shield for the couple
- George worked for Construction Inc., but he lost his job during the year. He received employment insurance benefits and, as a result, a T4E slip
- Louise has medication receipts for her and Rafael. All medications were prescribed by a physician. The drug bill she paid at the pharmacy for her is $395 and the drug bill paid for Rafael is $100
- Louise paid $350 for dental care
- George has a receipt that shows he paid $195 for eyeglasses. On his provincial notice of assessment from last year, an amount of $130.38 is entered in respect of the contribution to the Quebec prescription drug insurance plan
- Louise received an RL-19 and a RC210 slips for the advance payments of the work premium and the Advanced Canada workers benefit she received during the year
Slips required
T4 – Statement of Remuneration Paid - Innovation Ltd. for Louise
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Innovation Ltd.
Employee’s name and address:
Last name: Lambert
First name: Louise
123 Principale
City QC X0X 0X0
Box 10: Province of employment: QC
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 32,000.00
Box 17: Employee's QPP contributions – see over: 1,823.09
Box 18: Employee's EI premiums: 422.50
Box 22: Income tax deducted: 1,560.26
Box 24: EI insurable earnings: 32,000.00
Box 26: CPP/QPP pensionable earnings: 33,430.00
Box 45: Employer-offered dental benefits: 1
Box 55: Employee's PPIP premiums – see over: 165.01
Box 56: PPIP insurable earnings: 32,000.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – Innovation Ltd. for Louise
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Code du relevé: R
Box A– Revenus d'emploi: 33,430.00
Box B.A- Cotisation au RRQ: 1,823.09
Box C– Cotisation à l'assurance emploi: 422.50
Box E– Impôt du Québec retenu: 1,917.24
Box G– Salaire admissible au RRQ: 33,430.00
Box H– Cotisation au RQAP: 165.01
Box I– Salaire admissible au RQAP: 32,000.00
Box J- Régime privé d'ass. maladie: 1,430.00
Numéro d'assurance sociale du particulier: 000 000 000
Nom de famille, prénom et adresse du particulier:
Lambert, Louise
123 Principale
City QC X0X 0X0
Nom et adresse de l'employeur ou du payeur: Innovation Ltd.
RL-31 – Renseignements sur l'occupation d'un logement (Information about a leased dwelling) for Louise
Text version for the above image
Relevé 31 Renseignements sur l'occupation d'un logement
Code du relevé: R
Case A- Numéro de logement: 76C1B - 32670 - 2B178
Case B- Nombre de locataires ou de sous-locataires qui ont conclu le bail du logement visé à la case C: 01
Case C- Adresse du logement:
Case C2- Numéro: 123
Case C3- Rue: Principale
Case C4- Ville, village ou municipalité: City
Case C5- Code postal: X0X 0X0
Nom de famille, prénom et adresse du locataire ou du sous-locataire:
Lambert, Louise
123 Principale
City QC X0X 0X0
Nom et adresse du propriétaire: Beaulieu, Antoine
RC210 – Advanced Canada workers benefit (ACWB) for Louise
Text version for the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Lambert, Louise
123 Principale
City QC X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 148.98
RL-19 – Versements anticipés de crédits d’impôt (Advance payments of tax credits) for Louise
Text version for the above image
Relevé 19 - Versements anticipés de crédits d’impôt
Code du relevé: R
Box A- Prime au travail: 613.61
Nom et adresse du destinataire:
Lambert, Louise
123 Principale
City QC X0X 0X0
Nom et adresse du payeur:
Revenu Québec
Numéro d’assurance sociale: 000 000 000
T4 – Statement of Remuneration Paid – for George
Text version for the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Construction Inc.
Employee’s name and address:
Last name: Talbot
First name: George
123 Principale
City QC X0X 0X0
Box 10: Province of employment: QC
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 6,500.00
Box 17: Employee's QPP contributions – see over: 188.66
Box 18: Employee's EI premiums: 128.02
Box 22: Income tax deducted: 104.13
Box 24: EI insurable earnings: 6,500.00
Box 26: CPP/QPP pensionable earnings: 6,500.00
Box 45: Employer-offered dental benefits: 1
Box 55: Employee's PPIP premiums – see over: 82.91
Box 56: PPIP insurable earnings: 6,500.00
RL-1 – Revenus d'emploi et revenus divers (Employment and other income) – Construction Inc. for George
Text version for the above image
Relevé 1 Revenus d'emploi et revenus divers
Code du relevé: R
Box A– Revenus d'emploi: 6,500.00
Box B.A- Cotisation au RRQ: 188.66
Box C– Cotisation à l'assurance emploi: 128.02
Box E– Impôt du Québec retenu: 225.16
Box G– Salaire admissible au RRQ: 6,500.00
Box H– Cotisation au RQAP: 82.91
Box I– Salaire admissible au RQAP: 6,500.00
Numéro d'assurance sociale du particulier: 000 000 000
Nom de famille, prénom et adresse du particulier:
Talbot, George
123 Principale
City QC X0X 0X0
Nom et adresse de l'employeur ou du payeur: Construction Inc.
T4E – Statement of Employment Insurance and Other Benefits for George
Text version for the above image
T4E – Statement of Employment Insurance and Other Benefits
Protected B
Payer’s name: The government of Canada
Recipient’s name and address:
Talbot, George
123 Principale
City QC X0X 0X0
Box 7: Repayment rate: 0%
Box 12: Social insurance number: 000 000 000
Box 14: Total benefits paid: 5,000.00
Box 22: Income tax deducted: 325.00
Box 23: Quebec income tax deducted: 375.00
Solutions
Reminder of key points of the tax software
Note:
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Louise’s interview
Quebec prescription drug insurance plan premium
- Click Quebec prescription drug insurance plan in the left-side menu
- Select 5 – Exceptions, Québec prescription drug insurance plan, part of the year for the statement Specify the situation that applied to you in 20XX for the purpose of the Quebec prescription drug insurance:
- Select Yes for the question Do you wish to file a joint Schedule K (and pay any Quebec prescription drug insurance premium for your spouse)?
- For the statement Specify the exception(s) that applied to you in 20XX:, select Own group insurance plan [code 14] and tick the boxes next to October, November and December
- Click Solidarity tax credit in the left-side menu and complete section A. Information about you based on Louise's situation
- Select Tenant or subtenant (RL-31) for the question Were you or your spouse tenants (received a RL-31) or owners on December 31, 20XX?
- For the statement Please select to whom a RL-31 was issued, select Your name, then complete the corresponding fields. You must also answer the questions in section B. Information about your spouse
Employment income – T4 and RL-1 slips
- Click T4 and employment income in the left-side menu
- In the T4 and T4E section, click the + sign next to T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions
- Enter the information from the T4 and the RL-1 slips into the corresponding fields
- Click Medical, disability, caregiver in the left-side menu
- In the Medical expenses section, click the + sign next to Medical expenses (including TP-752.0.13.1)
- In the Medical expenses (including TP-752.0.13.1) section, enter the details into the field Dates (dd-mm-yyyy), descriptions of medical expenses, amounts in the $ field. and enter $395 into the field next to it
- Click the + sign next to the field where you entered the amount for medication. Then, enter dentist into the field that appears below and enter $350 into the field next to it.
Advanced Canada workers benefit
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the amount from the individual's RC210 slip
Advanced payments of the Work premium tax credit
- Click Other information slips in the left-side menu
- Click the + sign next to RL-19 – Advanced payments
- Enter the amounts from the individual's RL-19 slip
Additional steps to consider
Ensure you have:
- Answered the questions related to the Quebec tax shield
George’s interview
Quebec prescription drug insurance plan premium
- Click Quebec prescription drug insurance plan in the left-side menu
- Select 5 – Exceptions, Québec prescription drug insurance plan, part of the year for the statement Specify the situation that applied to you in 20XX for the purpose of the Quebec prescription drug insurance:
- Leave the field blank for the question Do you wish to file a joint Schedule K (and pay any Quebec prescription drug insurance premium for your spouse)?
- For the statement Specify the exception(s) that applied to you in 20XX:, select Group insurance plan of spouse or a parent (code16) and tick the boxes next to October, November and December
Employment income – T4 and RL-1 slips
- Click T4 and employment income in the left-side menu
- In the T4 and T4E section, click the + sign next to T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions
- Enter the information from the T4 and the RL-1 slips from Construction Inc. into the corresponding fields
Employment insurance benefits – T4E slip
- Click T4 and employment income in the left-side menu
- In the T4 and T4E section, click the + sign next to T4E – Employment insurance and other benefits (RL-6)
- Enter the information from the T4E slip into the corresponding fields
- Click Medical, disability, caregiver in the left-side menu
- In the Medical expenses section, click the + sign next to Medical expenses (including TP-752.0.13.1)
- In the Specified medical expenses (not claimed elsewhere) section, select Fees for eyeglasses frames from the drop-down menu and enter $195 into the field next to it
Rafael’s interview
- Click add dependant and enter the identification information for Louise and George's child. Note that the Relationship and Date of birth (dd-mm-yyyy) fields must also be completed
- Select Let MaxBack decide for the questions Who should claim this dependant on the Quebec return? and Does this taxpayer require a tax return?
- Click Medical and disability in the left-side menu
- In the Medical expenses section, click the + sign next to Medical expenses (including TP-752.0.13.1) for the dependant
- In the Medical expenses section, enter Prescription into the field Dates (dd-mm-yyyy), descriptions of medical expenses, amounts in the $ field and enter $100 into the field next to it
Takeaway points
Canada employment amount and Deduction for workers
- The software automatically calculated the Canada employment amount (federal) and the deduction for workers (provincial) in Louise's and George's tax returns.
Canada workers benefit and Work Premium
- The software automatically calculated the Canada workers benefit (federal) and the work premium (provincial) for the couple
- The total amount of the advance payments of the Canada workers benefit found in box 10 of the RC210 slip is reported on line 41500 of the federal tax return
- The amount for the advance payments of the work premium found in box A on the RL-19 slip is reported on line 441 of the Quebec income tax return.
Quebec prescription drug insurance plan premium
- Louise is choosing to pay George’s Quebec prescription drug insurance premium in addition to her own for the remainder of the year. Note that unless the spouses specifically ask, we recommend that you do not include both premiums on a single tax return.
T4E slip
- The amount of George’s employment insurance benefits found in box 14 of the T4E slip is reported on line 11900 of the federal tax return and on line 111 of the provincial tax return.
- Federal and provincial income tax deductions are found in boxes 22 and 23.
Medical expenses
- Although the medical expenses were entered in George and Rafael profiles, MaxBack chooses to give the medical expenses to Louise, on line 33099 of her federal tax return and on line 381 of her provincial tax return, because it was more advantageous.