CRA & Revenu Québec

About The Solidarity Tax Credit In Quebec

If you live in Quebec, you can apply for the solidarity tax credit when you file your provincial income tax return. The refundable tax credit is provided to low-income earners, which reduces a portion of the income tax owed. The amount of the credit is paid out over 12 months and depends on factors such as family income and the number of dependents.

Purpose of the Credit

Certified Income Tax Preparer Patrick Labrosse of Tax Action, based in Hudson, Quebec, says that “the solidarity tax credit replaces the credits for northern villages and the municipal and sales tax. Instead of applying for these credits and calculating the applicable municipal taxes, you fill out Schedule D, which is much simpler.” The method of payment is different as well. “Instead of receiving a refund check, you receive twelve equal payments from July 1st onward via direct deposit to your bank account,” he explains.

Eligibility Requirements

The solidarity tax credit unifies the eligibility criteria for the northern villages credit and the municipal and sales tax credits in a single set of requirements.

  • You must be 18 years of age or older and a resident of Quebec.
  • If you have a child or a spouse, you may be eligible even if you are younger than 18 years old.
  • You must be a Canadian citizen, permanent resident or the holder of a resident permit.

When to apply for the solidarity tax credit

You may apply for the credit if you meet the eligibility criteria at the beginning of a month from July 1st to June 30th of the year following your tax year. For example, you can claim the credit on the tax return you file for the 2015 tax year if you meet the eligibility criteria between July 1, 2016 and June 30, 2017.

If you are in prison or a child for whom someone is receiving Quebec financial assistance, you are not eligible.

Applying For the Credit

  • The Quebec general income tax return includes a new Schedule D, which you have to fill out and submit to apply for the solidarity tax credit.
  • You also may use the Revenue Quebec online “My Account” service to apply.

The schedule is a single page on which you identify yourself, establish whether you have a spouse, whether you are liable for municipal taxes as an owner or renter and whether you live in a northern village. A second page defines the various terms used on the form. Revenue Quebec carries out the calculations regarding the amount of your credit and advises you of the monthly payments.

If you didn’t fill out the form and apply in past years, you can still file a claim by submitting form TP-1.R-V, a Request for an Adjustment to an Income tax Return, and the Schedule D for the year in question.

Calculating the Credit

Revenue Quebec uses the information on Schedule D to determine your eligibility for each of the three components of the credit. They add the components depending on whether you pay municipal taxes as an owner or renter and whether you live in a northern village. They then reduce the total amount, depending on the income you entered on your provincial income tax return. If you have a spouse, they add the income from the spouse’s return to get your family income and use that to calculate your solidarity tax credit. Only one person in a family can claim the credit.

Payment Options

Revenue Quebec pays the solidarity tax credit exclusively via direct deposit into your bank account. If you have already registered to receive tax refunds by direct deposit, you will receive the credit the same way. If you are not registered, you can register online through the Revenue Quebec “My Account” service or fill out and submit form LM-3.M-V for residents living near Montreal and LM-3.Q-V for residents living closer to Quebec City.

Once you are registered and approved for the solidarity tax credit, you receive monthly payments into your account at the beginning of July, as long as you submit your return by the end of April. Individual tax returns for 2015 filed by May 2, 2016 will not incur interest or penalties.

References & Resources