Published | Category : Income tax - individuals
New One-Time Cost of Living Credit
The Ministère des Finances has announced a new refundable tax credit to help offset the part of the increase in the cost of living that is not covered by the indexation of the tax system. To be eligible for it, you must be eligible for the solidarity tax credit for the period from July 1, 2021, to June 30, 2022, because you met the requirements on December 31, 2020.
The new credit is a lump sum of:
- $200 for an eligible individual; or
- $275 for an eligible individual living alone.
Unlike the solidarity tax credit, the new one-time credit is not reduced on the basis of your family income.
You do not have to claim the new credit. Payments will be made automatically beginning on January 24, 2022.
To receive the new credit, you must file your 2020 income tax return by December 31, 2021, or you must have been receiving last-resort financial assistance on December 31, 2020. Filing your 2020 return by December 31, 2021, is also the only way to make sure you get the full amount you are entitled to.
For more information, see information bulletin 2021-8 on the Ministère des Finances website.