I have a question that is confusing me regarding T4-RL1 slip from Quebec.
I have a first-time client who worked the first three months of the year in Quebec and received a T4-RL1 and then moved to Ontario until now and received another T4 slip from the same employer but in the province of Ontario. Please see the screenshot “T4 Slips”.
RL-1 is below the T4 slip from Quebec and it was completed when I used AFR as follows, except for box E which I had to enter manually as in this screenshot “T4-RL-1”
What I am confused about is that the Tax deducted from RL-1 is added again to line 43700. Total tax paid in both slips as seen in the first screenshot is $18,491.70 but is reporting the total as $21,989.87 in line 43700, which means the Quebec tax was added twice as in the following screenshot
The $18491.70 you see on T4 is tax taken at the federal government only. Nothing there for Quebec tax deduction. It only indicates the income was earned while working in Quebec.
From what I can see from your screenshot, you manually added the $3498.17 in box E on the RL-1.
You will need to see the RL-1 issued to the taxpayer (which in a lot of cases, the taxpayer is not even aware they received or in transit). Input the amount of Quebec tax deducted from RL-1 in box E. (99% of the time different than federal).
Enter the amounts as they are shown on both the T4 and RL1 slips, and taxcycle will correctly apply the Québec tax towards the federal amount withheld when the taxpayer is not a resident in Québec on Dec 31. That is how it is supposed to account for the Québec tax withheld.
Thanks for your reply. But isn’t the tax payer getting double pay for the taxes from Quebec?
$3498.17 T4-Quebec + $14,993.53 ONT-T4 = $18,491.70
Plus $4080.80 again from RL-1 = $22,572.50
I am just making sure as I never had this situation before.
No because the T4 (QC) box 22 is only the federal tax withheld, which does not include the provincial (QC) tax withheld. The RL1 box E is only for the Québec tax withheld, which does not include the federal tax withheld.
If that taxpayer was a QC resident on Dec 31, the T4 tax would get applied to the T1 federal return and the RL1 tax would get applied to the TP1 return (Québec tax return).
The T4(ON) box 22 does include the federal and provincial (ON) tax withheld, but that is because provinces and territories other than Québec do not have their own separate tax return that needs to be filed apart from the T1.
I know, Québec is handling things differently than the rest of Canada. But it is what it is.
Ok. So you are saying the amount in box 12 for Quebec income tax deducted stay as $4080.80 and the total taxes to claim in line 43700 are $22,572.50 as I had in the screenshot.
