SOLIDARITY TAX CREDIT: Everything You Need to Know

Solidarity Tax Credit

Do you ever think that after taxes and fees, your paycheck is almost half? And you're only taking care of the essentials. Do you know that the government helps low - and middle-income employees by levying solidarity taxes. If you don’t know what solidarity tax credits are, then you are missing out on this great initiative the government has taken for Canadians.

In this blog, you will learn what the solidarity tax credit is, what the eligibility criteria for the solidarity tax credit are, how you claim your tax credit, and ways to pay for the solidarity tax credit.

What is the solidarity tax credit?

The solidarity tax credit is a tax credit that is refundable for low and middle-income households. Because it is based on your status on December 31 of the previous year, the amount of your credit from July 2022 to June 2023 will be dependent on your situation on December 31, 2021.

The "solidarity tax credit" helps low-income earners get some refundable amount from the government. Furthermore, after showing some proportion of your income, the government gives relief to the citizens. The government understands the pressure on low-income earners, so through this, they facilitate people.

Eligibility criteria for the solidarity tax credit 

The eligibility criteria for solidarity tax claims are straightforward. You can claim solidarity tax from July 2022 to June 2023, if you meet all the requirements, you will get a solidarity tax credit on December 31:

  • 18 years old or older than 18 years old.
  • Live with your father, mother or guardian.
  • Current relationship status married
  • a competent official acknowledged you as an independent minor
  • Canadian citizen, permanent resident, or protected person
  • Spouse a Canadian citizen
  • You were resident in Québec
  • a transient or the owner of a transient resident permanent

 Solidarity tax credit components 

The three parts of the solidarity tax credit are:

You can claim the solidarity tax credit even if you are not eligible for these three components.

Making a credit claim

You must file your income tax return and meet all conditions to be eligible for this credit. You must claim the credit by including Schedule D with your income tax return to obtain the full amounts to which you may be entitled for each component of the credit. credit. The Solidarity tax credit. We will only pay the basic amount and the spousal amount, if applicable, of the QST component if you are entitled to the credit but do not submit Schedule D. To be eligible for the solidarity tax credit, you often need to be signed up for direct deposit. Use the Solidarity Tax Credit Payments Estimator to calculate and get an idea of whether you are eligible for it or not.

Schedule D

The only way to guarantee that you receive the entire amount you are entitled to for each component of the solidarity credit is to complete Schedule D. You will only get the basic amount of the QST component and the spousal amount, if applicable, if you are qualified for the credit but fail to file Schedule D.

Calculate the credit

Based on your circumstances as of December 31, 2021, the solidarity tax credit is calculated from July 2022 to June 2023. The sums to which you are entitled under each of the three credit components will be added to determine your credit.

  • the housing component
  • the QST component
  • the component for individuals living in northern villages

Depending on your family's income, the overall amount can be lowered. The maximum family income according to a family situation is

  • Individual with spouse- basic amount $59,409
  • Single parent family – basic amount $54,568
  • An individual without a spouse whose basic amount is $54568

Payment of the credit

For the repayment of credit, you need 

  • Monthly instalments if your credit is $800 or more
  • Quarterly payment if your credit is more than $240 but less than $800, instalments are July-October and January- April.
  • Lump sum money paid in July if credit is less than $240

Direct deposit registration 

To receive affiliate benefits, you will often need to request a direct deposit. To register if you haven't already:

a cancelled check with your name and social security number via the direct deposit application form (the check must be from an account at a financial institution located in Canada) or using the online "Register Direct Deposit" service (this service To use it, you must register in the "My account" section (form LM-3-V). You must report any changes to your financial information to us. If you cannot do this, you will lose your right to tax relief for the payment period between July 2022 and June 2023.

Deadline for claiming the credit  

To get the full amount of the solidarity discount to which you are entitled for a given period, you must use it no later than four years after the end of the tax year to calculate the deduction for the period in question. Since the tax credit for the period from July 2022 to June 2023 is based on the assessment year 2021, you must apply for it no later than December 31, 2025. If you are not registered for direct debit, you must attach the form at the time of the credit request.


The Solidarity tax credit is a great opportunity that the government gives to poor people. The government understands the pressure on lower middle-class incomes to pay taxes. If you are entitled to a shared tax credit, you must claim it by the above deadlines.

To conclude this blog, we have discussed what the Unit Tax Credit is, its benefits to citizens, what the eligibility criteria for this scheme are, and how to claim the credit.

Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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