What is a Solidarity Tax Credit?

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The solidarity tax credit is a tax credit that is issued by the government of Quebec as a means to offset some of the income tax owed. Low to modest annual earnings are some of the main factors required to receive the solidarity tax credit.

The solidarity tax credit only applies to Quebec residents in Canada who prove eligibility for this credit.

Solidarity Tax Credit Eligibility Requirements

You might be wondering now how you can save some extra cash on this year’s tax return. According to Revenu Quebec, you can be entitled to the solidarity tax credit during the period from July 2022 to June 2023 if you meet all of these criteria by December 31, 2021:

  • You were 18 or older or, if you were younger than 18, you:
    • were the father or mother of a child who lived with you; or 
    • were recognized as an emancipated minor by a competent authority (such as a court).
  • You were resident in Québec.
  • You or your spouse was: 
    • a Canadian citizen; 
    • a permanent resident or a protected person within the meaning of the Immigration and Refugee Protection Actor
    • a temporary resident or the holder of a temporary resident permit within the meaning of the Immigration and Refugee Protection Act who had been living in Canada for the last 18 months.

It’s also important to note that you will not be eligible for this credit if:

  • If you were in prison or similar institution during the year in question for more than 183 days.
  • or a child under the age of 18 for whom someone is receiving Quebec financial assistance.

Solidarity Tax Credit Application Process

In order to apply for the credit, you must ensure you are registered for direct deposit with Revenu Quebec. If you are not, you need to apply for the direct deposit before you can fill out the necessary tax documents. Once registered, you would need to fill out the schedule D component of the Quebec general income tax return (TP1).

For more information on how to fill out Schedule D, please see this video. Alternatively, you can apply through the “My Account” feature directly on the Revenu Quebec site.

It’s important to note that last year’s tax return is taken into consideration when filing your application for the solidarity tax credit. For example, when you are filing your 2021 tax return, payments will be made to you on July 1, 2022, and will continue through to June 30, 2023.

How to Calculate the Solidarity Tax Credit

In order to calculate the solidarity tax credit, the government uses three credit components on which you are entitled to receive payments. We will cover the details of the three components here:

  • The Housing Component:

To be eligible for the housing component, you must be able to provide documentation that you or your spouse are homeowners, tenants, or subtenant of an eligible dwelling on Dec 31, 2021. In the case that you or your spouse are the homeowners of a dwelling, it is essential that your roll number or cadastral designation is displayed on your municipal tax bill.

  • The QST Component:

The QST component is offered as part of the solidarity tax credit to mitigate the burden of the Quebec sales tax (QST) on eligible residents. Families can enjoy this tax credit but if you are living alone or with persons under 18, you are eligible to receive an additional amount to help offset the Quebec sales tax even further.

  • Individuals Living in Northern Villages Component:

For residents of northern villages where the cost of living is much higher than other locations in Quebec, this component helps to relieve the cost of living in their town. The 14 northern villages who are eligible for this component are Akulivik, Aupaluk, Inukjuak, Ivujivik, Kangiqsualujjuaq, Kangiqsujuaq, Kangirsuk, Kuujjuaq, Kuujjuarapik, Puvirnituq, Quaqtaq, Salluit, and lastly, Tasiujaq.

Changes During the Year

The eligibility of your application to receive the solidarity tax credit is determined on December 31st of every year. As a result, you do not need to inform the government of any changes in your situation during the year except for the following:

  • If you leave Quebec permanently
  • If you are confined to a prison or similar institution
  • If your spouse passes away

For more information on the solidarity tax credit, please visit the Revenu Quebec.

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.