After announcing an indexation worth $2 billion a year for Quebecers, and pushing forward several changes regarding credits and benefits, Quebec residents can expect increases to the solidarity tax credit, family allowance and more in 2024.
Quebecers have been feeling the cost of living a lot more in recent months with rent increases, grocery price hikes and inflation hitting some of the most basic necessities. With many facing hardship, questions surrounding government aid have been circulating for some time. While there are loads of Quebec financial programs that many residents are eligible for, government benefits and credits aren’t cutting it any longer.
Now, the provincial government is implementing a number of initiatives to help Quebecers during these tough times including indexing the tax system and providing further social assistance benefits, all of which will be adjusted to inflation.
Here’s everything you need to know about the upcoming changes in Quebec credits and benefits, which take effect January 1, 2024:
Taxable Income Bracket
As of January 1, 2024, the maximum threshold for the first taxable income bracket will rise from $49,275 to $51,780, which can ultimately lead to tax savings of up to $125.
Furthermore, the basic personal amount, the tax credit that reduces the amount of income on which a person is taxed in Canada, is set to increase from $17,183 to $18,056, which could potentially save you up to $122 on your taxes.
Family Allowance
The Family Allowance payment provides financial assistance to all eligible families with one or more dependent children under the age of 18 living with them, per Retraite Quebec. If your child is born in Quebec, no application for Family Allowance is necessary. The child is automatically signed up for the Family Allowance measure when the birth is declared to the Directeur de l’état civil.
The maximum amount of Family Allowance for eligible parents in Quebec will increase from $2,782 to $2,923, a $141 difference. Note that Family Allowance payments can fluctuate due to several factors including the number of children you have, your family income, and marital status, to name a few.
Eligible Quebecers will receive Family Allowance four times a year, on the scheduled payment dates, that is:
- in July for July, August and September
- in October for October, November and December
- in January for January, February and March
- in April for April, May and June
Solidarity Tax Credit
Changes to the Solidarity Tax Credit will also take effect in 2024. The maximum amount of the solidarity tax credit for a single person living alone will increase from $1,162 to $1,221, marking a $59 difference.
The work premium for a couple with one child will experience a boost from $3,685 to $3,873, resulting in a $189 increase.
Individuals receiving social assistance as single recipients will witness a substantial rise in their annual basic benefits, climbing from $8,700 to $9,144, marking a significant increase of $444.
This article’s cover image was used for illustrative purposes only.
Source: MTL Blog
