This text is taken from Courrier de l’économie. Click here to subscribe.
One of our 75-year-old readers, Marcel Chabot, wonders regarding the $2,000 tax credit. When will he receive it, and how?
The refundable tax credit for senior assistance was introduced in 2018 to provide financial assistance to eligible individuals aged 70 or over who have to deal with modest incomes. Beginning with the 2022 tax year, the maximum amount per eligible senior increases from $400 to $2,000.
This amount is a maximum. It varies according to family income. The calculation of the tax credit takes into account a mechanism that reduces tax assistance by 5% for each dollar of family income that exceeds the applicable threshold (Quebec specifies that, given the significant increase in this financial support, the amount maximum amount of the tax credit will no longer be subject to annual indexation as of taxation year 2022. For years following 2022, a mechanism for revaluing the applicable reduction rate of 5% will be introduced. )
So :
An eligible senior living alone may benefit from a refundable tax credit of up to $2,000 provided that his family income, for the taxation year 2022, does not reach $64,195, the reduction rate of 5% s ‘applying from a family income of $24,195;
an eligible senior and their qualifying spouse as an eligible senior will benefit from a refundable tax credit of up to $4,000 when their family income, for the 2022 taxation year, does not reach $119,350, the reduction rate of 5 % applying from a family income of $39,350;
an eligible senior and their non-qualifying spouse eligible seniors will be able to benefit from a refundable tax credit of up to $2,000 when their family income, for the taxation year 2022, does not reach $79,350, the rate of reduction of 5% applies from a family income of $39,350.
Revenu Québec specifies the following:
“We will calculate for you the amount of the tax credit to which you may be entitled even if you do not request it when filing your income tax return. However, you can complete form TP-1029.SA-V Tax credit for senior assistance if you want to calculate the amount of the credit to which you are entitled. »
“If you and your spouse on December 31, 2022 are eligible individuals, you can split the tax credit. To do this, only one of you must complete form TP-1029.SA and attach it to your income tax return. Note, however, that you must both sign the form. »
To benefit from the tax credit, you and, if applicable, your spouse on December 31, 2022 must file your income tax returns. »
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