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Friday
Apr132012

What Happened to Quebec Property Tax Refund?

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

However, per Revenue Quebec: 

The property tax refund was replaced by the housing component of thesolidarity 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.

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.

More details on the solidarity tax credit and where to register

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