Notice to the 65,000 taxpayers who, at the start of the year, had not yet received their “one-off cost of living amount”: know that it is not too late to claim this government gift ranging from 400 $ to $600.
However, we must act quickly because there are only two weeks left, the deadline being June 30. This one-off amount was intended to help Quebec households partially absorb the high inflation of 6.8% which hit in 2022.
To obtain this precious refundable tax credit that François Legault’s government granted during the fall 2022 budget update, simply file your 2021 income tax return with Revenu Québec. And this, even if you have no income to declare, or provincial tax to pay!
2021 declaration
In addition to filing your 2021 declaration (yes, that of 2021), I remind you of the three other essential conditions required by the Legault government to receive the said “one-off amount for the cost of living” ranging from $400 to $600.
One, you had to be 18 years or older as of December 31, 2022. Exception: if you were under 18, you could be entitled to the tax credit if you were the father or mother of a child who resided with you, or if you were recognized as an emancipated minor by a competent authority, such as a court.
Two, you had to reside in Quebec and be a Canadian citizen, or be either a permanent resident, a protected person within the meaning of the Immigration and Refugee Protection Act or a temporary resident who had lived in Canada for the last 18 months.
Three, your net income for 2021 must be less than $104,000. We are talking here about $104,000 or less per taxpayer. In the case of a couple, each of the two people has the right to obtain said refundable tax credit of $400 to $600 based on their own net income and not family income.
Finance Minister Eric Girard estimated the cost of this “CAQ gift” at $3.5 billion.
The number of taxpayers eligible for this one-time tax credit is 6.5 million.
Here is the breakdown of taxpayers eligible for the cost of living amount:
1. $600 to 4.64 million people earning $50,000 or less
2. Between $400 and $600 for the 266,500 people earning $50,000 to $54,000
3. $400 to 1.6 million taxpayers earning $54,000 to $104,000
This “CAQ gift” is tax-free. And what’s more, the Legault government was kind enough to pay the entire amount even to taxpayers who have a tax debt or a tax balance to pay.
The “one-off amount” of $400 to $600 is in addition to the $500 gift that the Legault government had previously paid to taxpayers earning $105,000 or less. This first anti-inflation gift cost the Legault government $3.2 billion.
In total, therefore, the Legault government paid taxpayers $6.7 billion to help them counter the inflation bill.
