Tax Credit for Career Extension

The Tax Credit for Career Extension is a refundable Quebec tax credit designed to encourage experienced workers to remain in or return to the workforce after reaching retirement age. It allows eligible individuals to reduce the provincial tax payable on a portion of their work income. This tax credit helps offset the tax burden for seniors who choose to continue working beyond age 65 (age 60 prior to year 2024), effectively rewarding continued participation in the workforce.

Eligibility

• Available to individuals who were 60 (65 starting year 2025) years of age or older at the end of 2024.
• The individual must have eligible work income (employment or business income) earned during the year.
• The credit begins to apply once the individual’s work income exceeds $5,000 for the year.

The credit is calculated on the portion of eligible work income that exceeds $5,000, up to a maximum limit set by Revenu Québec. The amount of the credit increases with age, providing a greater benefit for older workers. The credit is applied directly to reduce the amount of Quebec income tax payable.

You can claim this tax credit if you meet both of the following conditions:

• You were resident in Québec on December 31st.
• You were 60 or older on December 31.

Example :

Marie, age 62 at the end of year, earned $20,000 in eligible employment income during the year.

Answer: The credit applies to work income exceeding $5,000, so her eligible amount must be higher than $5,000. Marie can claim a refundable Quebec tax credit of $489.31 on line 391, which directly reduces her provincial tax payable.