Personal Finance

Taxes: Living in ON but working in QC

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  • Feb 24th, 2018 11:52 am
[OP]
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Dec 20, 2005
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Taxes: Living in ON but working in QC

Last year, I lived and worked in QC until September. I then moved to ON and my job also moved there. I had taxes deducted from my pay up until September for QC and then the deductions switched to the ON tax rate. I assumed I would get a nice refund this year because of the switch in province but the various tax softwares I have tired say I owe money or that I will only get a very small refund. What am I doing wrong?

I currently have a T4 for QC, a T4 for ON and a Relevé 1 for QC.

My head hurts. Please help!
14 replies
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I think because you're dealing with two different countries (Canada and Quebec) it's going to mess things up. You'll need to talk to a tax expert. Canada has better agreements with other countries like the US than Quebec.

EDIT NOTE: The above is tongue and cheek. That said, Quebec has a different method of taxation compared to Canada, which the provinces are all pretty uniform. You'll have less issues if you had moved from New York to Ontario than Quebec to Ontario. Even CPP rates are different in Canada than Quebec, same with Employment Insurance, Canada has different rates that Quebec. I get it that Quebec is 'part of Canada' but it's also it's own nation. I think the expression was "Nation within a nation".

The OP is going to need expert advice on how to figure out the tax issues. I used to work for the CRA and movement to and from Quebec gave everyone headaches. We used to refer to Quebec as a different country, but I am guess that doesn't go over well now.
Last edited by jeff1970 on Feb 23rd, 2018 6:31 pm, edited 1 time in total.
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jeff1970 wrote: I think because you're dealing with two different countries (Canada and Quebec) it's going to mess things up. You'll need to talk to a tax expert. Canada has better agreements with other countries like the US than Quebec.
Quebec is in Canada last time I checked :rolleyes:
What the hell is better agreements?
I live in Canada and still fill my taxes ford Federal and provincial both do communicate.
Trust me if Revenue Quebec gets on your case Ottawa is not far behind and vice versa.

OP you have to fill taxes for both for 2017. From 2018 and on it will be Federal only.
They ask you in the software your province of residence and if you moved during the year.
My advice don't mess with revenue Qc they don't mess around. Also you moved in September so your taxes will mostly be based on being a QC resident.
You don't want to trigger an audit by being greedy. Take the small refund and move on.
Last edited by estevens on Feb 23rd, 2018 8:00 pm, edited 1 time in total.
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Jeff1970: Please abide by forum posting rules. these inflammatory kind of posting is of no help to nobody.

Thanks.
Last edited by komodor on Feb 23rd, 2018 8:04 pm, edited 1 time in total.
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komodor wrote: OP: Please abide by forum posting rules. these inflammatory kind of posting is of no help to nobody.

Thanks.
How was OP's post inflammatory?

OP, as far as I know it only matters where you lived on December 31. I would think that if your employer was doing things properly you would have a decent refund coming based on paying Quebec level taxes. I would need more information about your situation to give a better answer.
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estevens wrote: Quebec is in Canada last time I checked :rolleyes:
.......OP you have to fill taxes for both for 2017. From 2018 and on it will be Federal only.
They ask you in the software your province of residence and if you moved during the year.
My advice don't mess with revenue Qc they don't mess around. Also you moved in September so your taxes will mostly be based on being a QC resident.
You don't want to trigger an audit by being greedy. Take the small refund and move on.
Not correct. You file the return for the province where you resided on December 31.
[OP]
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Chickinvic wrote: How was OP's post inflammatory?

OP, as far as I know it only matters where you lived on December 31. I would think that if your employer was doing things properly you would have a decent refund coming based on paying Quebec level taxes. I would need more information about your situation to give a better answer.
I work for the federal government so taxes are calculated automatically. 65K total income, paid about 7K in federal taxes and another 4K to Quebec. I was hoping to get a nice refund but the tax softwares say I'm only getting 500$ back which seems low.
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mcbg1 wrote: I work for the federal government so taxes are calculated automatically. 65K total income, paid about 7K in federal taxes and another 4K to Quebec. I was hoping to get a nice refund but the tax softwares say I'm only getting 500$ back which seems low.
That is weird. Did they start taking less off once you moved to Ontario? I don't mean just the normal amount less that would be for Ontario, but did they maybe withhold less knowing you would be in an over-taxed position? Hubby (who works for the feb gov't) and I live on the Ontario side, and he works on the Ontario side, but his T4 reads Quebec and he is taxed like he's in Quebec working (their department used to be in the building that had the fire in Gatineau). I think we will be getting a good refund this year, but that might be due more to other factors (RRSP contributions). When he was in the military and actually did work in Gatineau (and we always lived in Ottawa) I think they withheld taxes at the Ontario rates since they knew where he lived and we never got much if any tax return then either.

Of course, with Phoenix who knows if they were taking the proper amounts off when you were still in Quebec lol. Maybe you would have owed a bunch if you were still living there.

PS - Did you get your T4 already? Hubby still can't access his yet on Phoenix.
[OP]
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I know someone who works at the pay centre in Miramichi and she was able to switch me to the Ontario tax rate so that I would make more money per pay instead of having to wait until the end of the year to get the money back after I do my taxes. With that said, I still paid lots of taxes to QC until September so I feel like I should have more money coming back to me now...

The year before, I lived and worked in QC and when I did my taxes last year, I got a nice refund back (over 1K) so this is why I was expecting to get even more this year.

Got my T4s today in Phoenix.
Chickinvic wrote: That is weird. Did they start taking less off once you moved to Ontario? I don't mean just the normal amount less that would be for Ontario, but did they maybe withhold less knowing you would be in an over-taxed position? Hubby (who works for the feb gov't) and I live on the Ontario side, and he works on the Ontario side, but his T4 reads Quebec and he is taxed like he's in Quebec working (their department used to be in the building that had the fire in Gatineau). I think we will be getting a good refund this year, but that might be due more to other factors (RRSP contributions). When he was in the military and actually did work in Gatineau (and we always lived in Ottawa) I think they withheld taxes at the Ontario rates since they knew where he lived and we never got much if any tax return then either.

Of course, with Phoenix who knows if they were taking the proper amounts off when you were still in Quebec lol. Maybe you would have owed a bunch if you were still living there.

PS - Did you get your T4 already? Hubby still can't access his yet on Phoenix.
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mcbg1 wrote: I know someone who works at the pay centre in Miramichi and she was able to switch me to the Ontario tax rate so that I would make more money per pay instead of having to wait until the end of the year to get the money back after I do my taxes. With that said, I still paid lots of taxes to QC until September so I feel like I should have more money coming back to me now...

The year before, I lived and worked in QC and when I did my taxes last year, I got a nice refund back (over 1K) so this is why I was expecting to get even more this year.

Got my T4s today in Phoenix.
It is odd. Was anything else different like RRSPs or something? I would also expect you to get a larger refund if you got a pretty big one even living in Quebec.
[OP]
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Dec 20, 2005
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Chickinvic wrote: It is odd. Was anything else different like RRSPs or something? I would also expect you to get a larger refund if you got a pretty big one even living in Quebec.
Nothing else has changed so I don't understand why I'm getting these numbers.
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Chickinvic wrote: How was OP's post inflammatory?

OP, as far as I know it only matters where you lived on December 31. I would think that if your employer was doing things properly you would have a decent refund coming based on paying Quebec level taxes. I would need more information about your situation to give a better answer.
Sorry I was referring to the 2 post whose contribution was moot (note: it has since been slightly edited).
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Talking to someone who knows would be good.

Without seeing the actual paperwork or what was put in the tax software, a few things I would look at:
- you mentioned 2xT4, 1xR1; those should reach be put in; this would/should lead to three taxes paid entries
- residence changed
- lost any tax credits like childcare/daycare? (Quebec can give a refund on some of this if you're in a "non-subsidized spot... You'd potentially lose this or other QC credits)
- paycentre possibly lower your taxes after the move taking into account the extra paid in QC (so low or no refund)
- some non-taxable benefits could have been added as taxable ... Pain to fix but it happens ... Some benefits that are non-taxable in other provinces are taxable in QC... Gets added to salary in some cases

... And so many more possibilities
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Depending on tax software... is there a box available to enter province of employment?

Perhaps when enter T4 there might be box to check that have R1 as well something like T4 income earned in Quebec perhaps.

I think you basically file as Ontario resident [Dec 31 living there] and then there are few boxes or similar in tax software that would allow you to enter R1 amounts. The program would then consolidate all and give you amount owed or refund.

Not tax expert.
.......
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