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 your employment, you’ll need to have your employer complete and sign Part 2 of a paper TP-76-V form, 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 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 2018 tax software:
Before you begin, make sure you told us that you lived in Québec on December 31, 2018. 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.