Québec just gave 6.4 million residents an extra $500.
23 mars 2022
As a one-time offering, the Québec government just issued a one-time refundable tax credit of $500 for the 2021 tax season. You read that right – $500 and refundable, meaning it’s going right into your pocket. Of course, there are some stipulations, and we’re here to break them down for you.
Who qualifies for this credit?
Every Québecker who was 18 years of age and older on December 31, 2021, with a net income not exceeding $100,000 in 2021 will qualify for the Special One-Time Cost of Living Tax Credit, which is expected to represent around 6.4 million residents. If you made up to $105,000 in 2021, you’ll still be eligible for this credit, but at a 10% reduction of the amount exceeding $100K. Anyone with a net income over $105K is out of luck on this one.
This is done on an individual basis, so if you’re part of a couple, you can both qualify as long as your individual net income is $105,000 or less.
If an individual passed away before January 1, 2022, they will not be eligible for this credit.
Why are they giving residents this credit?
This credit was developed to offset the cost of inflation. It’s a one-time credit, so don’t bank on this being around next year.
How do people access this credit?
The most important thing to do is file your tax return! If you don’t, you will not receive this credit.
What if I already filed my taxes?
If you filed your taxes before this credit was announced and received your refund already, don’t fret! The government will send you $500 by the end of May 2022. If you’re filing later in the tax season, or if you haven’t yet received your notice of assessment, the $500 will automatically be added to your refund amount when your tax return is assessed.
Of course, some people owe on their taxes, so this $500 can help to offset amounts owing.
If you have any questions, speak to your local H&R Block Tax Expert about this credit and the others available.
