All about Solidarity Tax Credit in Quebec

Did you know that as a resident of Quebec, you have the opportunity to request for solidarity tax credit by submitting your provincial income tax documents. Solidarity tax credit is refundable in nature and is aimed to assist individuals with lower income levels. The credit amount is distributed across a span of 12 months, contingent upon variables like familial earnings and the count of dependents.

Solidarity Tax Credit has 3 components –

1. Housing component

To qualify for the housing component, it is imperative to substantiate that you or your spouse (if applicable) held ownership, a tenancy, or subtenancy of an eligible dwelling on December 31, 2022. This verification process involves completing Schedule D and providing specific details –

• If you or your spouse were tenants or subtenants, you are required to input the dwelling number (found in box A of the RL-31 slip) and the count of tenants or co-tenants residing in your dwelling (specified in box B of the RL-31 slip). In the event that you haven't received your RL-31 slip by mid-March 2023, it is advisable to reach out to your landlord for the necessary documentation.
• Alternatively, if you or your spouse were the proprietors of the dwelling, you must input the roll number or cadastral designation (referred to as the "numéro matricule" or "désignation cadastrale") as indicated on your municipal tax bill. This information is crucial for validating your eligibility for the housing component.

2. QST component

The main objective of the QST component is to reduce the purchasing capacity of eligible individuals as a result of the Québec sales tax. Residence of one person in a building during previous year is a must for receiving the supplementary allotment designed specifically for such people. For example, to receive an allowance for the period between July 2023 and June 2024, you should live alone at home during the month of January through December 2022.

However, it is worth mentioning that such a notion as living alone applies not only to cases when a person lives by himself or herself but also where there are one or more young adults in the same household. In such a case, the law treats you as having lived alone for determination of such a part.

3. Component for individuals living in northern villages

The provision for individuals residing in northern villages is designed to address the discrepancy in living costs, acknowledging that the expenses in these areas surpass those in other parts of Québec. Northern villages, defined as territories established as municipalities under the framework of the Act respecting Northern villages and the Kativik Regional Government, qualify for this component. It serves as a form of compensation to help offset the heightened cost of living unique to these specific regions.

The 14 norther villages that fall under this component are –

• Akulivik
• Aupaluk
• Inukjuak
• Ivujivik
• Kangiqsualujjua
• Kangiqsujuaq
• Kangirsuk
• Kuujjuaq
• Kuujjuarapik
• Puvirnituq
• Quaqtaq
• Salluit
• Tasiujaq
• Umiujaq

Solidarity Tax Credit Quebec eligibility

To qualify for the solidarity tax credit for the period spanning from July 2023 to June 2024, you must have met the following criteria on December 31, 2022 –

• Age and Relationship Status

• You were 18 years old or older. If you were younger than 18, you would still be eligible if you -
• Had a spouse.
• Were the parent of a child who resided with you.
• Were officially recognized as an emancipated minor by a competent authority, such as a court.

• Residency

• You were a resident in Québec as of December 31, 2022.

• Citizenship or Residency Status

• Either you or your spouse was -
• A Canadian citizen.
• A permanent resident or a protected person under the Immigration and Refugee Protection Act.
• A temporary resident or held a temporary resident permit under the Immigration and Refugee Protection Act, and had been residing in Canada for the last 18 months.

Given below are the situations in which you are not eligible to claim Solidarity Tax Credit Quebec.

• Confinement

You were incarcerated in a prison or a similar institution, and your total period of confinement in 2022 amounted to more than 183 days.

• Family Allowance Payment

Another individual received a family allowance payment from Retraite Québec concerning you for December 2022, unless you reached the age of 18 during that month.

• Refugee Protection Claimants

Both you and your spouse (if applicable) were refugee protection claimants on December 31, 2022.

How to apply for Solidarity Tax Credit?

To streamline the process of receiving your Solidarity Tax Credit, it is crucial to ensure that you are enrolled for direct deposit with Revenu Quebec. Additionally, when completing your tax return, be sure to include Schedule D, as this credit is contingent upon the information from the previous year's tax return.

As an illustration, if you are in the process of filing your 2022 tax return, the credited payments will commence on July 1st, 2023, and continue through until June 30th, 2024.

Within the Quebec general income tax return (TP1), there exists a Schedule D that necessitates completion and submission to apply for the Solidarity Tax Credit. To facilitate this process, you can refer to a video resource offering detailed guidance on how to accurately fill out Schedule D. This ensures that you adhere to the requirements and maximize your eligibility for the credit.

How to calculate Solidarity Tax Credit?

There are various factors that you need to keep in mind when calculating Solidarity Tax Credit Quebec.

• Basic Amount

All eligible individuals receive a basic amount. The specific amount may vary based on factors such as family situation, income, and whether the person lives alone.

• Additional Amounts

Additional amounts may be provided for individuals living alone, those living in northern villages where the cost of living is higher, and those with disabilities.

• Calculation and Payment Period

The credit is calculated based on your situation as of December 31 of the previous year. For example, if you are applying for the period from July 2023 to June 2024, your eligibility is assessed based on your circumstances as of December 31, 2022.

• Application Process

To receive the Solidarity Tax Credit, you generally need to file a provincial income tax return. The credit is usually paid out in monthly installments.

Once you've provided all the necessary details to Revenu Quebec, they will assess your eligibility by considering the components outlined earlier. It's essential to bear in mind that within a family, only one individual is permitted to claim the Solidarity Tax Credit.

Revenu Quebec takes charge of the intricate calculations pertaining to your credit amount and subsequently informs you about the scheduled monthly payments. If you're interested in obtaining an estimate of these payments, you can access the relevant information by clicking here.

In case you failed to claim this credit in prior years, there's an opportunity to rectify this by submitting a claim. This involves completing form TP-1.R-V, specifically a Request for an Adjustment to an Income Tax Return, along with the Schedule D corresponding to the applicable year. This process allows you to address any oversights or changes in your circumstances that may impact your eligibility for the Solidarity Tax Credit.

Solidarity Tax Credit payment

Once you are eligible for solidary tax credit, a letter of determination containing the credit amount for this period (July 2023 – June 2024) will be forwarded to you. The factors considered in the process of calculation will also be stated on this notice. Payments will depend on what credit is determined.

Here's a breakdown of the payment schedule based on the credited amount –

• Credit of $240 or Less

If the credit is equal to $240 or fewer, it will be paid out in a lump sum in July, 2023.

• Credit More Than $241 but Less Than $799

Whereas if its above 241b–779b, it will be paid in four quarters: Jul-Oct 2023 & Jan-Apr 2024.

• Credit of $800 or More

In this case, for credits of no less than eight hundred dollars, it is going to take place within a year commencing in July of 2023 and ending in June of 2024.

The payment arrangements are tailor-made to cater for different credit amounts, thus making it possible to pay according to the defined credit levels.