The solidarity tax credit is a refundable tax credit intended to help households with average and even low incomes. This credit is calculated based on your situation on December 31 of the previous year. In order to benefit from the tax credit, you must apply for it when filing your income tax return and comply with the conditions for granting it. JKB Services can assist you in the steps to take and help you optimize your chances of benefiting from the solidarity loan.
What conditions must be met to apply for a solidarity tax credit?
To be able to apply for solidarity tax credit, a number of conditions must be met. In fact, not everyone is entitled to this credit as it is aid intended for households that need it most. Here are the criteria to be met to be authorized to apply for a solidarity tax credit:
Be 18 years of age or older:
This age criterion means that you have to be of legal age to qualify for this aid so that it is spent as it should, but not for other less important purposes. In other words, the granting of this credit requires seriousness on the part of the beneficiary so that the granted funds are used for the intended purpose.
However, be aware that if you are under 18, you can still claim the solidarity tax credit provided you are in the following situations:
- You are married or you are the father or mother to a child who lives with you.
- You are recognized as an emancipated minor by the court or any other competent authority.
Be resident in Quebec:
You and your spouse were:
- Citizens in Canada;
- A permanent resident or an individual under government protection under the Immigration and Refugee Protection Act.
- A temporary resident or holder of a temporary resident permit who has lived in Canada for the past 18 months.
Signing up for direct deposit: a step not to be overlooked
To claim the Solidarity Tax Credit, you must first register for direct deposit.
In order for this registration to proceed as it should, do not forget to inform the manager concerned of any change of bank account. The reason is that you risk losing your right to the tax credit if it is not paid on time due to a change in bank account.
To register for the solidarity tax credit, here are the steps to follow. Note that you have three options for registration:
- Use of the online service relating todirect deposit enrollment : If you have registered for the Revenu Québec online service, you can register for direct deposit immediately. If you have not yet registered for this online service, you must register here.
- The second registration option is to attach your income tax return to a specimen check issued by a banking establishment established in Canada or having a subsidiary in Canada. The check in question must bear the words "canceled" on the front as well as your personal information, including your name and social insurance number.
- The third option is to complete the direct deposit enrollment request form (LM-3.Q or LM-3.M) and attach it to the income tax return you have made. Note that if you live near Quebec City, you need the LM-3.Q form. On the other hand, if you are near Montreal, opt for the LM-3.M form. The only difference between these two forms is in the address where they will be sent.
Revenu Québec will notify you of the total amount of your solidarity tax credit as well as the information to be taken into account for the calculation.
If you have chosen to hire the services of JKB Services, we will not hesitate to give you the necessary assistance so that you can quickly register for the solidarity tax credit
How to calculate the solidarity tax credit?
The first thing you should know is that for the payment period from July 2017 to June 2018, the solidarity tax credit is calculated based on your situation on December 31, 2016. For the calculation, the amounts you may have entitlement for each of the three specific components of the solidarity tax credit are added. The components in question are:
- The component related to the QST;
- The housing component;
- The component relating to residence on the territory of a northern village.
- Also keep in mind that the amount obtained can be deducted according to your family income.
Family income that can be met via the solidarity tax credit
In your return, your family income is mentioned on line 275. However, if on December 31, 2016, you had a spouse, your family income would be the amount on line 275 added to the amount on line 275 for your spouse.
Note that if your family income is greater than or equal to $ 51,279, you will not be entitled to the solidarity tax credit. However, if it is below this figure, complete Annex D. After your registration, the officials concerned will determine whether you may be entitled to the solidarity tax credit.
If your main residence is in a Nordic village, the family income table below does not apply to you. You just have to fill in Annex D.
Here is a table showing the maximum family income according to family situation as of December 31, 2016:
|Family situation||Income amount ($)||Additional income for dependent children ($)||Maximum family income ($)|
|Individual with spouse||55828|
|Single parent family||51279|
|Individual without spouse||51279||51279|
If you want to know how much tax credit you can claim, use thecalculation tool from Revenu Québec. The JKB Services team can also assist you in this task.