Many state support measures require the calculation of the net income of an individual or household in order to be eligible. No tax return is no money. Think about it, especially for your adult children who are studying.
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“When I was making statements in front of the public, I saw many of them, students who had no income, not making their statements. They couldn’t defer their tuition or get their solidarity credit,” says tax expert Nicolas Godbout, now at Effisca, a specialist in income tax with wealth in the US and elsewhere.
Young and old who don’t fill out their tax returns risk leaving a lot of money on the table. See instead.
The $500 to Legault
PHOTO PATRICK SANFAÇON, LA PRESSE ARCHIVE
Low-income adults are eligible for certain allowances.
In the 2022 budget, the Quebec government announced a tax-free payment of $500 to Quebec adults earning at least $100,000. The check was intended to offset the damaging effect of inflation on taxpayers’ purchasing power. Those who submitted their tax return for 2021 received it automatically. If not, it’s not too late to correct them.
Rebel lot in December
PHOTO HUGO-SÉBASTIEN AUBERT, LA PRESSE ARCHIVE
In order to receive the solidarity allowance, the taxpayer must file a state income tax return.
The Coalition Avenir Québec government kept its election promise and sent a second check in December. It was $600 for those over 18 making $50,000 or less and at least $400 for those making more than $50,000 to $100,000.
If the son blows out his 18 candles over the course of 2022, he’s entitled to the check, confirms Tommy Gagné-Dubé, an assistant professor of taxation at the University of Sherbrooke. He has yet to have completed his 2021 provincial declaration to receive it. He must comply by June 30, 2023.
Polite reminder: A taxpayer must file a state income tax return in order to receive the Solidarity Allowance and Labor Bonus Credits, which have been enhanced in 2022. These work premium credits are intended for workers who are not full-time students. To be eligible, the single person will earn a minimum of $2,400 and a maximum of $21,490 in 2022. Solidarity credits from the past four years can be used.
The federal government is no exception.
PHOTO FRANÇOIS ROY, LA PRESSE ARCHIVE
By filing their federal return, taxpayers also ensure that the Canada Revenue Service automatically verifies their eligibility for certain programs.
The same reasoning applies to the GST special credit paid towards the end of 2022 to offset runaway inflation. Ottawa doubled the GST credit for six months. An adult 19 years and older, alone and without children, can receive $234. Anyone who submitted the federal income tax return in 2021 automatically received the special payment from November 4th. For others, the production of the 2021 T1 would pay off.
By filing the federal tax return, the taxpayer also ensures that the Canada Revenue Service will automatically verify their eligibility for Canada Worker’s Allowance (ACT) with modest earnings. In 2022, a single person with no children is eligible for the ACT with earned income of at least $2,400 up to a maximum of $29,073. Full-time students for more than 13 weeks are not eligible. From July 2023, 50% of the estimated allowance will be paid out automatically.
Housing Benefit: Less than a month to pocket $500
Is your child studying in the city and living in an apartment, undoubtedly eligible for the Canada Housing Benefit Individual Supplement? The anti-inflation measure introduced on December 1st is still unknown.
“It’s not in the tax itself, but it’s a good idea to talk about it,” agrees Sébastien Hamel, CPA. Anyone age 15 and older who earns less than $20,000 and spends at least 30% of net income on housing is eligible for a $500 tax-free allowance. For paid rent, the reference year is 2022. For earned income, it is 2021.
“Like the Canadian dental allowance, this measure was not published,” regrets tax expert Nicolas Godbout.
PHOTO SUPPLIED BY NICOLAS GODBOUT
Nicolas Godbout, tax specialist and financial planner at Effisca
To determine a taxpayer’s eligibility, the Canadian Revenue Agency will verify their age, income and residency for tax purposes. The heir applies for the addendum online under “My file” or by telephone.
Attention ! Junior only has until March 31st to claim it. He must also have filed his 2021 federal income tax return.
Canada Learning Bond
PHOTO NICOLAS TUCAT, AGENCE FRANCE PRESS ARCHIVE
The Canadian government can deposit a bond into a registered education savings plan without the adult having to pay anything.
The education loan is a measure for low-income families. The Canadian government pays the bond into a Registered Education Savings Plan (RESP) without the adult having to pay anything. It’s like picking up $2,000 off the sidewalk by almost bending over. The federal government pays $500 on account opening and $100 per year thereafter up to a maximum of 15 years.
In 2022, for the first time, a beneficiary student can open an RESP in their name and claim the Canada Learning Bond for the eligible years up to their 15th birthday. Must be 18 and under 21. Their eligibility for the Learning Bond is based on their parents’ income for the applicable years. His parents must have previously filed their tax returns for the years in question.