Tax Guide for Refugees and Protected Persons in Quebec: Income Reporting, Benefits, and CRA/Quebec Credits — CPA Firm Near You, Montreal

Introduction

Refugees and protected persons arriving in Quebec often navigate complex financial, legal, and social situations. With a new Social Insurance Number (SIN), temporary documents, and rapidly changing employment status, many new arrivals are unsure how the tax system works. This guide explains how refugees and protected persons must report income, what benefits and credits they qualify for, and how a CPA firm near you in Montreal can help ensure accurate, timely, and optimized tax filings.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, refugees and protected persons become tax residents as soon as they establish residential ties in Canada. This usually happens immediately upon arrival. From that date onward, they must report worldwide income, including any foreign income received after becoming residents. Refugees must file both a federal (T1) and provincial (TP1) return. They may qualify for major refundable credits such as the GST/HST Credit, Quebec Solidarity Tax Credit, Canada Child Benefit (CCB), and refund programs related to rent, childcare, and education. CRA and Revenu Québec require accurate documentation including work permits, refugee status documents, pay slips, rent agreements, and children’s records.

Key Court Decisions

Courts have ruled that protected persons and refugee claimants are considered residents for tax purposes even if their immigration status is not yet permanent. Judges have denied exemption claims where taxpayers attempted to avoid worldwide income reporting despite living in Canada full-time. Courts have also confirmed that once a refugee becomes a Quebec resident, they are immediately eligible for provincial refundable credits if they meet income and residency conditions. Cases emphasize that the absence of proper documentation can delay benefits but does not eliminate eligibility.

Why CRA and Revenu Québec Target Refugees and Protected Persons

Refugees are not targeted negatively, but their files are frequently reviewed because:
• Income comes from multiple sources (temporary work, gig work, support programs)
• Documentation may be incomplete
• Rent and childcare credits require verification
• Foreign income rules are misunderstood
• Children arrive at different times in the year
• T4 and RL-1 slips are often delayed from employers

Auditors and reviewers compare immigration arrival records, federal support payments, rental documents, and employer payroll records to ensure proper reporting.

Mackisen Strategy

At Mackisen CPA Montreal, we help refugees and protected persons understand and navigate the tax system from day one. We verify residency status, organize T4 and RL-1 slips, calculate worldwide income, and claim all refundable credits. We ensure accurate eligibility for programs such as the Solidarity Tax Credit, GST/HST Credit, and Canada Child Benefit. Our team also helps newcomers apply for benefits, register dependents, and optimize deductions for childcare and medical expenses. If CRA or Revenu Québec requests additional documentation, we prepare responses, defend your filings, and ensure continued access to benefits.

Real Client Experience

A family of protected persons arrived mid-year with multiple rent payments and childcare receipts. Revenu Québec questioned the Solidarity Tax Credit claim due to missing documents. We reconstructed their rental history, validated payments, and secured approval. In another case, a refugee claimant worked part-time cash jobs and was unsure how to report income. We reconstructed earnings using bank deposits, coordinated with employers, and ensured a compliant filing that maximized refundable credits.

Common Questions

Do refugees need to file taxes even before PR status?

Yes. Tax residency is separate from immigration status.

Can refugees receive GST/HST and Solidarity Credits?

Yes, once they become Quebec residents and meet income and eligibility conditions.

Do refugees need to report foreign income?

Yes, from the date they become tax residents of Canada.

Are children eligible for benefits?

Yes. Once registered and documented, children qualify for the Canada Child Benefit and Quebec family credits.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps refugees and protected persons stay compliant while maximizing refundable credits. Whether managing income from temporary work or supporting a family through transition, our expert team ensures precision, transparency, and full audit protection.