TP-1029.BF: Tax shield

If you were a resident of Québec on December 31, 2021 and your income increased during the year, you might be eligible for the Québec tax shield credit. This credit helps offset an increase in employment income, which can cause a reduction in tax credits related to the work premium (including the adapted work premium) and/or childcare expenses.

The Tax shield credit is calculated based on your family situation and your (and your spouse’s, if applicable) income as on December 31.

To be eligible, you must meet the following conditions:

  • If you were single on December 31, 2021:
    • The net income you’re reporting in 2021 is higher than the amount reported on your 2020 Québec return (refer to line 275* of last year’s Québec return) and
    • The eligible work income you’re reporting in 2021 is higher than the amount reported on your 2020 Québec return

  • If you were married or in a common-law relationship on December 31, 2021:
    • The net family income you and your spouse are reporting in 2021 is higher than the amount reported in 2020 (refer to lines 275 of your and your spouse’s 2020 Québec returns) and
    • The eligible work income that you and your spouse are reporting in 2021 is higher than the amount reported on your 2020 Québec returns

*You can find line 275 of your Québec return at the bottom of page 2 of your TP-1 form:

Note: When claiming this credit using H&R Block’s tax software, you’ll be given the option to let Revenu Québec claim this credit for you. If you select Yes, you won’t need to enter amounts from your 2020 Québec return; Revenu Québec already has this information on file. If you select No, you’ll need to enter the amount reported on line 275 of your 2020 return(s). If you and your spouse (if applicable) are preparing separate returns, you’ll also need to enter amounts from their 2019 return. It’s important to remember that whatever option you choose, the credit amount you receive will be the same.