Special One-Time Cost of Living Tax Credit
A new special one-time refundable tax credit has been created to help individuals in Québec 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.
If your net income for 2021 was $100,000 or less, you will receive a $500 tax credit.
If your net income for 2021 was more than $100,000 but less than $105,000, the $500 will be reduced by 10% of the part of your net income that exceeds $100,000.
If your net income for 2021 was $105,000 or more, you will not receive the credit.
Note that under the Tax Administration Act, we can apply this credit to the payment of any amount you may owe the government.
Peter's net income is $103,000. His tax credit will be calculated as follows:
$500 − (10% × [$103,000 − $100,000])
$500 − (10% × $3,000)
$500 − $300 = $200
Peter will get $200.
If you are eligible (see below) and your net income for 2021 is less than $105,000, you will get the new credit automatically when we process your 2021 income tax return. You do not have to claim it.
If you have already filed your income tax return for the 2021 taxation year and received your notice of assessment, you will get the credit by the end of May (if you are eligible). You do not have to claim it.
If you have already filed your income tax return for the 2021 taxation year but have not received your notice of assessment, we will check whether you are eligible and calculate your credit (if applicable) when we process your return. You do not have to claim it.
To be eligible, you must have met the following requirements on 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 were:
- a Canadian citizen;
- a permanent resident or a protected person within the meaning of the Immigration and Refugee Protection Act; or
- 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.
However, you are not eligible if either of the following situations applies to you:
- You were confined to a prison or similar institution on December 31, 2021, and, in 2021, you were confined for one or more periods totalling more than 183 days.
- You were exempt from income tax in 2021.
Individuals who died before January 1, 2022, are not eligible. However, if an eligible person dies after December 31, 2021, the credit will be paid out when we process their income tax return for 2021.
If you have been designated as the liquidator of a succession, complete our questionnaire to find out how to meet your tax obligations regarding the deceased's return.