Am I eligible for tax credits when I contribute to the Fonds de solidarité FTQ?

A number of criteria are required to qualify for labour-sponsored funds tax credits: your place of residence, your age, your income, and whether you have already redeemed shares in a labour-sponsored fund, for example. As of 2024, a new criterion based on taxable income will come into effect.

Eligibility criteria for labour-sponsored funds tax credits are as follows:

Residency

You must reside in Québec

Age

Between the ages of 18 and 64. As of the year in which you turn 65, you are no longer eligible for tax credits.

Minimum income

Labour-sponsored funds tax credits are available only if you declare employment income (gross amount) or business income (net amount) of at least $3,501, provided you have not made a buyback for retirement or disability with a labour-sponsored fund.

Maximum income

Investors with taxable income over $112,655 in 2022 will no longer be eligible for labour-sponsored funds tax credits in 2024.

Under federal legislation, a federal tax credit will only be granted if you are also eligible for the Quebec tax credit. Thus, if your taxable income exceeds the threshold, you lose access to the full 30% of credits (15% Québec and 15% federal).

Redemption of a labour-sponsored fund

  • Tax credits are no longer available to you from the year in which you redeem a labour-sponsored fund for your retirement or phased retirement.
  • If you redeemed from a labour-sponsored fund due to severe and prolonged disability, you are no longer eligible for tax credits for shares acquired after the date of the redemption request.
  • You will not be entitled to tax credits for shares you redeem within 60 days of the date of acquisition.

Need help finding your taxable income on your tax return? Here's how.

Legal Notes
The preceding is a summary of the principal tax implications affecting shareholders of the Fonds de solidarité FTQ. It does not constitute a tax or legal opinion for a given shareholder and you should not consider it as such. Tax consequences may vary according to your situation.

You are responsible for ensuring that your subscriptions to the Fonds de solidarité FTQ are eligible for tax credits and RRSP-related deductions. Please refer to the prospectus for more details.
 
The Fonds de solidarité FTQ's shareholders will receive 15% in tax credits from the Québec government and 15% from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
Under federal legislation, a federal tax credit is only granted if you are also entitled to a Quebec tax credit. For more information, contact the Canada Revenue Agency at 1 800 959-7383.