What Happened to Quebec Property Tax Refund?/ Preparing the RL31 and the solidarity tax credit

For Quebec taxpayers who have been trying to locate their RL-4 slips, the slip that your landlord usually provides, or the part on the tax forms or software where you would enter your property taxes (Schedule B), be advised that as of 2011, that this is no longer a specific tax credit.  Prior to 2011, both property owners and renters could claim a portion of property taxes paid.  This reduced income taxes payable for taxpayers whose total family income was under approximately $50k

RL31 for Landlords and Tenants

Beginning with the year ended December 31, 2015 landlords are required to provide tenants with an RL 31 slip which indicates the name of the tenant, the number of tenants at a particular address as well as the address of the tenant. Each individual listed on the lease must be issued an RL31. Deadline for filing the form is February 28th following the year of residence and is only issued to tenants living at a particular dwelling December 31, 2019. The forms can be filed online through Revenue Quebec and is a fairly straightforward process. Failure to file the form by the landlord can result in a penalty. The form is then required to be used by the tenant to claim the portion of the solidarity tax credit relating to residence.

The property tax refund was replaced by the housing component of the solidarity tax credit. As a result, landlords no longer have to provide their tenants with RL-4 slips, and Part E of Schedule B (which tenants had to complete to claim the refund) has been removed. To claim the solidarity tax credit, complete Schedule D.

SOLIDARITY TAX CREDIT

In March 31, 2010, Quebec introduced the (interestingly named) Solidarity Tax Credit which essentially combines the following tax credits: 

• QST Credit

• Property tax refund

• Credit for individuals living in Northern villages

Essentially, Revenue Quebec no longer allows for a credit that is based on specific property taxes paid.  Rather, with the Solidarity Tax Credit, it determines whether you live in an eligible dwelling i.e. do you rent or own your home and calculates a monthly credit that is based on your total income.  (The higher the income, the lower the credit, until it reaches $0).  The solidarity tax credit is combined with the QST credit and is paid out to Quebec taxpayers on a monthly basis as long as they don’t exceed the income threshold.  Generally speaking, a single taxpayer who owns or rents their home will be eligible for the full amount of solidarity tax credit if their income does not exceed $31,695, which is approximately $900.   Net incomes between $31,695 and approximately $46,000 reduce the amount of the tax credit until the amount reaches nil.  Keep in mind that, to receive the credit, you must register for direct deposit.

The credit will now be paid monthly, however in order to be paid you must be registered for direct deposit.  The credit takes effect and first payments will be made on July 1st, 2011, so Revenue Quebec is trying to get individuals (many of whom have already received somewhat ominous looking letters) not already signed up, to register for direct deposit.

Registration can be done online, by filling out a form or mailing a blank voided cheque with your name and SIN.  

Individuals eligible for the Solidarity tax credit include Quebec residents who are older than 18 and are not in prison.

The credit is usually claimed via your income tax return, however if you are a new resident in Quebec you may claim it by filling out form TP-1029.CS.1-V.

Common law and married couples can only file one claim.

Of course if you leave Quebec, go to prison, separate from your spouse (for more than 90 days), among other things, you must advise Revenue Quebec by filling out form  (form TP-1029.CS.3-V)

Online Revenue Quebec services relating to the solidarity tax credit.