As announced in the Québec budget speech of March 22, 2022, a new one-time refundable tax credit has been created to help individuals deal with the rising cost of living.
It will be paid out to eligible individuals who file an income tax return for 2021 and whose net income for the year is less than $105,000.
Eligibility is based on the taxpayer’s situation on December 31, 2021. To be eligible, taxpayers must have been 18 or over, been resident in Québec and had an eligible residency status.
See the Revenu Québec page Special One-Time Cost of Living Tax Credit for more information.
If an individual is eligible for the credit, they will automatically receive it when Revenu Québec processes their 2021 income tax return. This credit is not claimed on the TP1 return. Individuals must first file a return and upon assessment, Revenu Québec will grant them the credit, if they meet the conditions, including the income level.
If they have already filed their income tax return for the 2021 taxation year and received their notice of assessment, they will get the credit by the end of May (if eligible).
If they have already filed their income tax return for the 2021 taxation year but have not received their notice of assessment, Revenu Québec will check whether they are eligible and calculate their credit (if applicable) when they process their return.
If your clients have questions about the credit, you can refer them to the Revenu Québec FAQ: Special One-Time Cost of Living Tax Credit.
No. We've been instructed by Revenu Québec to not adjust or modify TaxCycle as they will assess each return and will grant the credit if the conditions are met.