As a Quebec resident, 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. The amount of the credit is paid out over a 12 month period and depends on factors such as family income and the number of dependents.
What are the components of Solidarity Tax Credit?
Since the changes have been made back in 2016, this credit offers 3 components; Housing, QST and those living in northern villages. Now you simply have to fill out Schedule D and you will then receive a monthly payment, starting July 1st of the fiscal year in question but is based on your previous year’s income taxes. You must be registered for direct deposit to receive your payments.
Who is eligible for Solidarity Tax Credit?
There are certain criteria you must be privy to in order to receive this credit, which include:
- 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 temporary resident permit.
How to Apply for Solidarity Tax Credit
As mentioned above, ensure you are registered for direct deposit with Revenu Quebec and fill out schedule D when doing your taxes. This credit is based on your previous year’s tax return.
For example, you are filing your 2022 tax return, payments will be made on July 1st of 2023 and will follow through to June 30th, 2024.
The Quebec general income tax return (TP1) includes a Schedule D, which you have to fill out and submit to apply for the solidarity tax credit. Please watch this video for detailed information on how to fill out Schedule D.
You also may use the Revenue Quebec online “My Account“ service to apply.
However you will not be eligible for this credit if you:
- Were in prison or similar institution during the year in question for more than 183 days.
- A child under the age of 18 for whom someone is receiving Quebec financial assistance.
How to Calculate Solidarity Tax Credit
With the information you have provided Revenu Quebec, they will then determine your eligibility based on the components mentioned above. Take note that only one person in a family may claim this credit.
Revenu Quebec carries out the calculations regarding the amount of your credit and advises you of the monthly payments. If you would like to estimate what your payments may be, click here.
If you missed claiming this credit in previous years, you can 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.
What are the payment options for Solidarity Tax Credit?
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 this 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 formLM-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, your payments will begin in July, but you must submit your return by the end of April.
Are you hoping to get your hands on some extra cash this year? Don’t miss our Emily, our tax expert, share the top 10 tax breaks Quebecers can claim.