If you worked as a member of the clergy or a religious order, or as a regular minister of a religious denomination in Québec, you can claim a deduction for your residence or lodgings using form TP-76-V: Clergy Residence Deduction.
To claim this deduction, you must be employed full-time as someone who is:
- A Minister to (or in charge of) a diocese, parish, or congregation
- Engaged exclusively in full-time administrative service as appointed by a religious order or religious denomination
If you were required to use your own residence during the course of your employment, you’ll need to have your employer complete and sign Part 2 of your TP-76-V, certifying that you’re qualified to claim this deduction. If you had more than one employer in the tax year, each employer will need to complete part 2 of a separate TP-76-V form. You won’t have to file the TP-76-V with your return, but keep it just in case Revenu Québec asks to see it later.
Note: Residents of Québec will also need to complete the federal form T1223: Clergy residence deduction.
How much can I claim?
The amount of deduction you can claim depends on whether your employer provided you with the accommodation or you rented or owned your residence.
If your employer provided the residence and/or an allowance for utilities, the value of both is shown as a taxable benefit in box V of your RL-1 slip. You can claim this amount as a deduction on your tax return. Fortunately, H&R Block’s tax software will automatically claim this amount for you based on the information you enter on the RL-1 page.
If you owned or rented your residence, you can claim a deduction that is equal to the lesser of the following amounts:
- One third of your employment income as a member of the office, or $1,000 for each month you were employed (up to $10,000) and met the eligibility requirements, whichever is more
- The rent (including utilities) you paid if you were renting, or if you own your home, the fair rental value* of your residence (including utilities)
*The fair rental value of your residence (unfurnished) can be obtained from a qualified realtor. You can include the cost of utilities (electricity, heat, water, and sewer services) in the fair rental value amount.
Note: In either case, your deduction amount can’t be more than the total employment income you received from the office during the year.
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure you told us that you lived in Québec on December 31, 2017. You’ll also need to enter information from your RL-1 slip into the tax software under the QUICK SLIP icon on the QUICK ENTRY tab.
- On the PREPARE tab, click the EMPLOYMENT icon. You’ll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Residence deduction for a member of the clergy or a religious order (TP-76-V), then click Continue.
- When you arrive at the page for your TP-76-V, enter your information into the tax software.