In the latest budget announcement, the Quebec government introduced a new $500 special one-time cost of living tax credit that can be claimed by over 6 million Quebec residents in 2022 for tax year 2021.

Let’s find out the details.

Refundable tax credit paid directly to you

This new measure is the refundable tax credit granting a one-time amount to mitigate the increase in the cost of living, a special amount of $500 paid to eligible Quebec residents who have filed their 2021 income tax return. Note that it is not included on the 2021 Quebec tax forms; instead, it will be paid out once Revenu Quebec sends you a Notice of Assessment for your 2021 tax return.

Am I eligible?

You are eligible for this credit if you met the following requirements on December 31, 2021:

• You were at least 18 years old
• You were a resident of Quebec
• You had at least one of the following statuses:
  
  
  • Canadian citizen
  • permanent resident
  • temporary resident
  • protected person
  • refugee protection
• Your net income for 2021 was less than $100,000*
• You filed a 2021 tax return with Revenu Quebec

* If your net income was between $100,000 and $105,000, you can claim a reduced amount of this credit. However, you are not eligible for the credit if your net income was above $105,000.

What if my tax return was filed prior to the announcement?

If you have yet to receive your Notice of Assessment, Revenu Quebec will give you the credit along with it. If you have already received your Notice of Assessment, Revenu Quebec will issue a new assessment that will include this credit. This should be done by the end of May.

If I have a spouse, is eligibility determined individually?

Yes. If you have a spouse and you each had less than $100,000 in net income, you are both eligible for the $500 credit.

If I have a balance owing, will Revenu Quebec deduct the $500 payment from what I owe?

Revenu Quebec might indeed deduct the $500 payment from your balance owing. This will be determined when they assess your tax return.