Paul Delean: How do federal dental — and rental — payouts work in Quebec?


In theory, Quebec has a two-year eligibility window for the federal dental allowance for children. Or is there?

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New dental and rent payments from Ottawa were among the topics brought up recently by readers. Here’s what they wanted to know.

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Q: How will the new state dental allowance for children work in Quebec?

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A: Not as wide as in other provinces. The Canada Dental Benefit provides families of children under the age of 12 who are not covered by a private dental plan with up to $650 per child per year. But in Quebec, children under the age of 10 already have access to basic dental services, including an annual exam, x-rays, fillings and tooth extractions, through the Régie de l’assurance maladie du Quebec (RAMQ). So, in theory, there is only a two-year eligibility window for the federal benefit in Quebec. Or is there?

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RAMQ will not pay for cleaning, fluoride application, or orthodontic work. The federal government’s website cryptically states that “children who are already covered by another state dental program may also be eligible if all dental expenses are not paid for by that program.” So maybe the Canada Dental Benefit is available after all, depending on the service provided.

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The payout is $650 per child for families with household incomes of approximately $70,000 or less, $390 for families with incomes between $70,000 and $80,000, and $260 for families between $80,000 and $90,000. Applicants must certify that they will use the out-of-pocket allowance for dental expenses incurred by the child on or after October 1 of this year, provide employer and dentist information, and retain receipts. Incorrect information can result in fines. You must apply for the benefit through CRA MyAccount, but the application process does not begin until December.

Q: I live in my house, but when I can no longer do that and have to move to a nursing home, my daughter and her husband will move in there and it will be their primary residence. My entire fortune is bequeathed to her. Will she be taxed if she moves into the house? It would be difficult for them if that were the case.

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A: On this front you can sit back and relax. The primary residence exemption from capital gains tax that now applies to your property may also apply if the house is occupied by one of your children (unless you also claim the exemption for another property that you own). This means that there is no tax due on the increase in value during the time you have owned it. If you want to transfer the property to her when you move in, this is also a tax-free transaction. It depends on how comfortable you are with the idea of ​​giving up ownership at this point in your life.

Q: Any news about this support for renters that the federal government talked about earlier this year?

A: If and when approved by Parliament, the additional federal aid for renters will take the form of a $500 Canadian housing benefit check, with many strings attached. Applicants must not have a net income exceeding $20,000 (individuals) or $35,000 (families). They must pay at least 30 percent of their income for housing (which, for example, excludes low-income renters in public housing in Montreal, as their rent is fixed at 25 percent of income). You must apply to the Canada Revenue Agency to obtain it and agree that CRA may verify the information you provide (including your age, income, and how much rent you pay and who you pay it to). More information on eligibility and how to apply will be made available in the coming weeks, CRA said.

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Incidentally, Quebec has its own housing grant program with roughly the same income limits. It is aimed at people aged 50 and over or low-income families with at least one dependent child, and also includes homeowners. You must also apply for this annually by completing Form LEX-165-V (Shelter Allowance Application). There’s also a housing component to the Quebec Solidarity Tax Credit, but you need to earn less than $54,568 if you’re single (slightly more for couples and parents of dependent children) to receive it.

The Montreal Gazette invites readers to questions about taxes, investments, and personal finance. If you have a question that you would like answered, please email Paul Delean at [email protected]

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