The Career Extension Tax Credit in Quebec is a tax benefit designed for experienced workers who continue working beyond the age of 60. This credit aims to encourage older workers to extend their careers by reducing their income tax. Here are the details of this credit:
Eligibility Requirements:
– Age: The credit is available starting at age 60 and increases after age 65.
– Worker: It is intended for individuals who continue to work and earn employment income (wages or other work-related earnings).
-Eligible Income: Only employment income (not retirement or investment income) qualifies for calculating this tax credit.
Tax Credit Amount:
The amount of the credit varies based on the worker’s age:
– Between 60 and 64 years old: The credit can apply to a maximum of $10,000 in eligible employment income per year.
– From age 65: The maximum eligible income increases to $11,000.
The tax credit is calculated as a percentage of the eligible employment income, which reduces the amount of tax owed.
Tax Reduction:
– This credit is **non-refundable**, meaning it reduces the amount of tax owed but cannot generate a refund if no tax is payable.
– It is applied directly to the tax owed, thus reducing the tax burden of experienced workers.
Coordination with Other Programs:
– This credit can be combined with other provincial and federal tax measures for seniors, such as **pension income splitting** or the **age amount tax credit**.
Purpose:
The tax credit is designed to encourage experienced workers to remain active in the workforce, thereby promoting their economic participation and helping them better prepare for retirement.
In summary, this credit allows seniors to continue working while benefiting from tax relief proportional to their employment income.