  Schedule K - Quebec prescription drug insurance plan |
A - Situations where you are not required to fill out Schedule K
The taxpayer is not required to fill out this schedule or pay a contribution
if, for the entire year, he was in one of the situations listed
below. In that case, however, you are required to enter the code identifying
the taxpayer's situation in box 449 of his return. If the taxpayer chooses to
pay his spouse's contribution, he must fill out this schedule and no entry
will be required in box 449.
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14 The taxpayer was covered by his own group insurance plan.
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16 The taxpayer was covered by the group insurance plan of his spouse or a parent.
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18 The taxpayer was a recipient of last-resort financial assistance.
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20 The spouse is providing the information required concerning the
taxpayer in section 2 of part B of his Schedule K, and intends to pay the taxpayer's
contribution, if required.
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22 The taxpayer was under 18 years of age and unmarried.
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24 The taxpayer was a registered Indian or an Inuit.
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26 The taxpayer was a beneficiary under the James Bay and Northern Quebec agreement
or the North-Eastern Quebec agreement.
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29 The taxpayer was born before January 1, 1945, the taxpayer's spouse
on December 31, 2009 was born before January 1, 1950 and the amount of net
federal supplements on line 148 of the return is over $4,859.
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31 The taxpayer was born before January 1, 1945, didn't have a spouse
on December 31, 2009 or if he/she did, the spouse was born after December
31, 1949 and the amount of net federal supplements on line 148 of the return
is over $7,359.
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32 The taxpayer did not have a spouse on December 31 and the amount
entered on line 275 of his return does not exceed $14,040.
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34 The taxpayer had a spouse on December 31 and the total amounts
entered on line 275 of both returns does not exceed $22,750.
Example 1: Taxpayer's own group insurance plan, covered all year
DT Max treatment:
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File of family head
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File of spouse
DT Max will enter code 14 in box 449 for the family head, and code 16 in box
449 for the spouse.
Example 2: The spouse is not required to file Schedule K
The family head is providing the information required concerning his spouse in
section 2 of part B of his Schedule K and intends to pay the spouse's contribution,
if any.
DT Max treatment:
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File of family head
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File of spouse
DT Max will enter code 20 in box 449 of the spouse's return.
B - Situations where the taxpayer must fill out Schedule K
All situations other than those listed in A above.
DT Max treatment:
- Enter Drug-Insur and provide the information required.
C - Keywords and options pertaining to Schedule K
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Drug-Insur -- Keyword that opens the group.
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Own group insurance plan, covered all year
The taxpayer was covered for the entire year under one or more private group
insurance plans. In this case, no Schedule K is required from the taxpayer.
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Group insurance plan of spouse/parent, all year
The taxpayer was covered for the entire year under the group insurance plan
of his spouse or a parent. In this case, no Schedule K is required.
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Quebec prescription drug insurance plan, all year
The taxpayer had no private group insurance at any time during the year and
cannot avail himself of any of the exemption situations described in Schedule K.
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Quebec prescription drug insurance plan, exceptions
Use this option to prompt the keyword Situation which is used to specify other
exemption situations as defined in Schedule K. This option is relevant if, for
instance, the taxpayer had group insurance plan coverage for only a part of
the year.
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Quebec prescription drug insurance plan, exceptions, all year
Use this option if you were in an exemption situation throughout the year.
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File-Jointly -- Keyword to be used in the file of the spouse who will
be filing Schedule K including his spouse.
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Situation -- Keyword which opens the group of situations where the
taxpayer is not required to pay a contribution. A different group is opened
for each situation selected.
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Own group insurance plan
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Group insurance plan of spouse/parent, all year
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Age 60 to 65, holding a valid claim slip
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Received last-resort financial assistance
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Under 18 years of age and unmarried
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Age 18 to 25 inclusive, full-time student, unmarried
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Registered Indian
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Beneficiary under the James Bay agreement
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In a residential and long-term care centre
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At least age 18, infirm before 18, unmarried
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Living outside Quebec all year
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Other situations - foreign national
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Other situations - French national student
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Other situations - resident of other province with business in Quebec
The provincial guide (line 447) clearly defines the criteria to comply with in order to qualify for certain
situations where the taxpayer doesn't have to pay a contribution.
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Months -- Keyword that opens the group listing the 12 months of the year.
No month can be selected more than once. If, for instance, a taxpayer was receiving
last-resort financial assistance and was also covered by a group insurance plan during
the same month, both options must be entered in DT Max, but that specific
month will only be entered once, as shown below:
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Drug-Insur Quebec prescription drug insurance plan, exceptions
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Situation Received last-resort financial assistance
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+ MONTHS December
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Situation Own group insurance plan
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January, February, March, April, May, June, July, August, September, October, November, December
Choose the relevant months (one by one) if you were not in a given situation for the entire year.
D - Tax rules regarding Schedule K
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Schedule K must be filled out and enclosed with the provincial return even if,
based on the schedule's calculations, the taxpayer is not required to pay
a contribution. The only situations where the taxpayer is not required to
fill out and enclose Schedule K are the situations listed in A above.
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The contribution to the Quebec prescription drug insurance plan can be deducted
federally as a medical expense in the next tax year. Therefore, DT Max will carry the
contribution payable for the year as a medical expense in the
following year.
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The contribution to the RAMQ (régime d'assurance-maladie du Québec) for the
current year can be deducted provincially as a medical expense incurred in that year provided
that the 12-month period of reference used to determine medical expenses
includes December 31 of the same year.
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The calculation of global income (line 40) considers the taxpayer's and
spouse's net income (if applicable) as of December 31, whether the spouse
files an Schedule K or not.
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The taxpayer must have been in a situation qualifying for exemption for at least
one day in the course of a given month in order to be deemed to have been in that
situation throughout the entire month.
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DT Max generates Schedule K for any taxpayer who was at least 18 on December 31
and whose province of residence was Quebec. Therefore, when these two criteria
are met and the keyword Drug-Insur had been omitted, DT Max produces a warning when
saving or calculating.
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If the taxpayer was 17 or younger on December 31 and files a
Quebec income tax return, DT Max will automatically enter code 22 in box
449 of his return.
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If the taxpayer was 17 years of age or younger, at any moment in the
year, and was married, he is required to pay a contribution to the Quebec prescription
drug insurance plan. The keyword Drug-Insur must therefore be used in the files
of both spouses.
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In the case of a bankruptcy occurring in the year, Schedule K must be
enclosed with the return filed for the period beginning the day of bankruptcy.
In the calculation of the contribution, however, the taxpayer's income for the
entire year must be taken into account. DT Max will use it in the
calculation of the postbankruptcy return.
E - Data entry
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Enter the keyword Drug-Insur and select an option among the following:
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Own group insurance plan, covered all year
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Group insurance plan of spouse/parent, covered all year
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Quebec prescription drug insurance plan, all year
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Quebec prescription drug insurance plan, exceptions
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Quebec prescription drug insurance plan, exceptions, all year
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If the taxpayer elected to include his spouse on his Schedule K, you must
select Yes for the keyword File-Jointly and enter the information
required in the file of the spouse excluding, of course, the keyword
File-Jointly .
F - Examples
CASE 1
The family head is single, age 44, and not covered by a private insurance plan.
He has two children, a 20 year-old daughter who attended one fall semester in
CÉGEP and a 12 year-old son.
The family head and daughter are both subject to the Quebec prescription drug insurance plan.
Both must file Schedule K since only spouses may be combined on one single schedule.
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File of family head
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File of daughter
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Drug-Insur Quebec prescription drug insurance plan, exceptions
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Situation Age 18 to 25 inclusive, full-time student, unmarried
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Months August, September, October, November, December
The family head is subject to the maximum contribution of $403.50 whereas the daughter
could have to pay a maximum of $234.03 ($403.50 X 7/12 months). The calculation of
their respective contributions will depend on the global income used in the
calculation of the contribution (line 48, part A of Schedule K).
CASE 2
The family head is insured by ABC insurance for all of the year.
The spouse is covered by the same plan.
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File of family head
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File of spouse
Schedule K will not be produced. Code 14 will appear in the file of the family
head and code 16 in the file of the spouse.
CASE 3
The family head and spouse were not covered by a private insurance plan, throughout the year.
The family head wishes to include his spouse on his Schedule K.
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File of family head
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File of spouse
CASE 4
The family head was insured for entire year, and wishes to include his spouse on his Schedule K.
The spouse received last-resort financial assistance from January to March, inclusive.
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File of family head
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File of spouse
- Drug-Insur Quebec prescription drug insurance plan, exceptions
- Situation Received last resort financial assistance
- Months January, February, March
Schedule K will be completed in the file of the family head and the contribution
payable for the 9 months during which the spouse was not covered will be entered
on line 447 of the family head's return. Code 20 will appear in box 449 of the
spouse's return.
CASE 5
The taxpayer is a full-time student, age 22, unmarried.
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File of taxpayer
- Drug-Insur Quebec prescription drug insurance plan, exceptions, all year
- Situation Age 18 to 25 inclusive, full-time student, unmarried
Schedule K will be produced even if the taxpayer is not required to pay a
contribution. If the student had reached the age of 26 on March 15, for instance,
he would have been subject to a contribution for the months of April and subsequent.
In DT Max, you would have selected Months and then January, February, March.
CASE 6
The family head is married, but you are not required to prepare the spouse's return.
You cannot enter the information for Schedule K in the keyword RelatedParty.
However, DT Max considers the net income entered in RelatedParty for the
calculation of the taxpayer's Schedule K. It is therefore not possible to
select the keyword File-Jointly when the spouse's return is not prepared by
the same accountant (DT Max does not allow a taxpayer to pay the contribution of a
spouse who does not appear in the database). If the taxpayer insists on
completing Schedule K for his spouse, you must create a file in your
database for that spouse, which you will link to the taxpayer, who will
represent the family head.
CASE 7
The family head died on September 2. He was covered by an insurance plan
in January and February.
You must select the option Death in the keyword StatusChange and enter the
date of death (standard procedure in case of death).
DT Max will calculate the contribution payable on Schedule K based on the number
of months applicable (7 months including September) and will automatically
check the option Other situations for the months of October, November
and December without taking into account the spouse's net income.
October 14, 2002
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