Exciting news! The Québec government has introduced and provided an additional a special one-time refundable tax credit of $500 for the 2021 tax season. Yes, you heard it right – $500 that will directly go into your pocket. However, there are a few conditions to consider, and we’re here to provide a clear explanation of the requirements.
Québec provided an additional: Eligibility for the Special One-Time Cost of Living Tax Credit
The Special One-Time Cost of Living Tax Credit is available to individuals who meet the following criteria:
- You must be a resident of Québec.
- You must have been 18 years of age or older on December 31, 2021.
- Your net income for the year 2021 should not exceed $100,000.
- The credit is expected to benefit approximately 6.4 million residents in Québec.
- If your net income for 2021 falls between $100,001 and $105,000, you will still be eligible for the credit. However, the amount exceeding $100,000 will be reduced by 10%. Individuals with a net income over $105,000 are not eligible for this credit.
- The eligibility is determined individually. Therefore, if you are part of a couple, both individuals can qualify as long as their individual net incomes are $105,000 or less.
- Unfortunately, if an individual passed away before January 1, 2022, they will not be eligible for this credit.
Reason for Providing the Credit to Residents
The purpose of this credit is to help residents cope with the impact of inflation. It is important to note that this is a one-time credit, so it may not be available in subsequent years.
Accessing the Credit
To access this credit, it is crucial to file your tax return. Failure to do so will result in not receiving the credit. Filing your tax return is the key step to ensure eligibility and receive the benefit.
Impact on Already Filed Taxes
If you have already filed your taxes prior to the announcement of this credit, there’s no need to worry. The government will still ensure you receive the $500. By the end of May 2022, they will send you the payment separately. In case you are filing your taxes later in the tax season or have not yet received your notice of assessment, the $500 will be automatically included in your refund amount once your tax return is assessed.
Offsetting Tax Amounts Due
For individuals who owe taxes, this $500 credit can be applied to help offset the amount owed. It provides an opportunity to reduce the outstanding balance or even eliminate it entirely.
