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


In theory, there’s a two-year eligibility window for the federal child dental benefit in Quebec. Or is there?

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New dental and rental payouts from Ottawa were among the topics raised recently by readers. Here’s what they wanted to know.

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Q: How is the new federal dental benefit for children going to work in Quebec?

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

RAMQ doesn’t pay for cleaning, fluoride application or orthodontic work. The federal government website cryptically states that “children already covered under another government dental program may also be eligible if not all dental-care costs are paid by that program.” So perhaps the Canada Dental Benefit will be available after all, depending on the service provided.

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The payout amounts to $650 per child for families with household income of about $70,000 or less, $390 for families earning in the $70,000-$80,000 range, and $260 for families falling between $80,000 and $90,000. Applicants will have to attest that they’ll use the benefit for out-of-pocket dental-care expenses incurred for the child on or after Oct. 1 of this year, provide employer and dentist information and keep receipts. False claims can result in fines. You’ll need to apply for the benefit through CRA MyAccount, but the application process won’t start until December.

Q: I live in my house, but when I can no longer do so and have to move into a care home, my daughter and her husband will move in and it will become their principal residence. All my assets are bequeathed to her. Will she be taxed when she moves into the house? It would be difficult for her if that was the case.

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A: You can rest easy on that front. The principal-residence exemption from capital-gains tax now applicable to your property also can apply if the house is occupied by one of your children (provided you aren’t also claiming the exemption on another property you own). That means there will be no tax due on any appreciation in value during the time you’ve owned it. If you want to transfer the property to her when she moves in, that also is a tax-free transaction. It’s a matter of how comfortable you are with the idea of relinquishing ownership at that point in your life.

Q: Any news about that assistance for renters the federal government was talking about earlier this year?

A: If and when it’s approved by Parliament, the extra federal aid for renters will take the form of a $500 Canada Housing Benefit cheque with a lot of strings attached. Applicants cannot have net income above $20,000 (individuals) or $35,000 (families). They must be paying at least 30 per cent of their income on shelter (which disqualifies low-income renters in subsidized housing in Montreal, for instance, since their rent is set at 25 per cent of income). You’ll have to apply to Canada Revenue Agency to receive it, and consent to allowing CRA to verify the information you provide (including your age, income and the amount of rent you pay and who you pay it to). Further information on eligibility and how to apply will be made available in the coming weeks, CRA said.

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Incidentally, Quebec has a shelter allowance program of its own, with roughly the same income thresholds. It’s geared to people 50 and older or low-income families with at least one dependent child, and also includes homeowners. You need to apply for this one as well, annually, by completing Form LEX-165-V (Shelter Allowance Application). There’s also a housing component to Quebec’s Solidarity Tax Credit, but you need to earn below $54,568 if you’re single (slightly more for couples and parents of dependent children) to get it.

The Montreal Gazette invites reader questions on tax, investment and personal-finance matters. If you have a query you’d like addressed, please send it by email to Paul Delean at [email protected].

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