The parental contribution that an adult is deemed to receive under subparagraph h of subparagraph 3 of the first paragraph of section 27 of the Act shall be determined for a 12-month reference period on July of each year by taking into account the net income of his or her father and mother for the taxation year preceding the reference period or for the current year where the income for that year is less by 10% or more than that of the preceding year.
The INCOME taken into consideration is comprised of:
- the amount shown in the Net Income box (line 199) of the Quebec income tax return for the preceding fiscal year, where the person was assessed under the general income tax structure
If the tax return shows pension income splitting*, this amount must be subtracted from the parent’s income. This income is reported on line 123 “Retirement income transferred by your spouse”;
- 19: of this tax return (income earned while you were not resident in Canada and that is not subject to Quebec income tax);
In addition, any other gross income reported in a tax return produced in another province, territory or country that has not been reported on line 19 must be considered in the calculation of income.
OR
the amount shown in the "Amount used for the purposes of determining net family income" box (line 220) of the Quebec simplified income tax return for the preceding fiscal year, where the person was assessed under the simplified income tax structure;
When the parent(s) declare income without signing the “Information on the parental contribution” form, a verification will be undertaken with them to find out the reason why it was not signed. This may be an omission, the indication of a refusal to exchange information with MRQ or a refusal to contribute.
Once the reason is known, two procedures are possible.
- The missing signature(s) is (are) obtained. The income is used to establish the amount of the parental contribution.
- The missing signature(s) is (are) not obtained. The income is used to establish the amount of the parental contribution.
When the situation of both parents differs, i.e. one parent signs, the other does not, according to the response obtained, the same above-mentioned procedures apply.
When only one of both parents refuses to contribute and since parents are deemed to be an entity, we will apply the procedure of refusal to contribute and the income of both parents will be taken into account. There is no subrogation as we consider that a contribution is paid. Therefore, the parental contribution is deemed to be received.
Upon the annual re-evaluation of the parental contribution, the records excluded from the parental contribution due to reversible criteria will be analysed. A verification of the councillor with the client will be sufficient.
If the client confirms that the situation remains the same, the procedure is completed.
If the client confirms that the situation has changed and that a parental contribution is possible, the councillor initiates the procedure again to obtain information on the parents’ income.
DECREASE IN PARENTS’ INCOME BY AT LEAST 10%
Upon the client’s request, the income for the current taxation year must be considered, rather than the income of the taxation year preceding the reference period, when the former is at least 10% lower than the latter.
This decrease in income is taken into consideration when the income of one or all parents decreases or ceases as a result of an accident, illness, strike, lock-out, loss of employment, bankruptcy, etc. The contribution is recalculated and the assistance is readjusted for the following month. For instance, if, in October 1999, a decision is made to use the income for 1999, the assistance is readjusted for November 1999.
When Income Security considers the income for the current taxation year (estimated income), the parents must undertake to keep them informed of their income every four months. As such, every four months, a letter is sent requesting the parents’ estimated income; the parental contribution may be readjusted to avoid reimbursements.
In cases where the estimated income is considered, the difference may not be presumed to be incorrect. However, when there is evidence that the parent(s) voluntarily submitted an incorrect declaration of income, in spite of periodic follow-up, this situation is interpreted as a false declaration.