The soaring costs at the grocery store, the drastic increase in costs associated with housing and property, among others, have largely influenced the rise in the consumer price index (CPI). Also, the purchasing power of households is considerably reduced. The effects are felt more for low- and middle-income households. However, there are some programs intended to improve the purchasing power of taxpayers, who are part of these social classes.
Aid from both levels of government
The federal government, as well as the provincial government, offer certain programs allowing them to improve their standard of living. This is why the Government of Quebec offers a work bonus for low-income households, while the Canadian Government offers a Canada Workers Allowance (ACT).
In addition to the provincial premium, you may also be eligible for the ACT at the federal level, also calculated according to your net family income.
Update on provincial support – Work premium
To benefit from the work bonus issued by Revenu Québec, you must meet this condition, including residing in Quebec, on December 31, of the year of the request.
The work premium can be requested when filing your income tax return or by advance payments to Revenu Québec. However, you must exercise caution when requesting advance payments, since you may have a balance to repay at the end of the year, when filing your income tax return, if you have underestimated your income. When requesting advance payments, they are deposited monthly. It is important to request it, since Revenu Québec does not systematically pay it.
The maximum authorized work income for a couple without children is $38,017, $43,280 for a single-parent family and $24,475 for a single person.
For example, the maximum annual premium can reach $2,785 for a single-parent family and $3,984 for a single-parent family and for a couple with a child. It is $2,785 for a couple without children and $1,127 per year for a single person.
In the event that the net family income exceeds respectively $43,280 for a single-parent family, $60,585 for a couple with children, $38,017 for a couple without children and $24,475 for a single person, the work bonus ceases to be paid. It gradually decreases from $13,205 for a single person, $22,954 for a couple without children and a single-parent family, and $30,740 for a couple with children, finally becoming zero when the income mentioned above has been reached.
The Canada Workers Benefit (CWB)
In addition to the provincial premium, you may be eligible for the ACT at the federal level, also calculated according to your net family income. The Canada Workers Benefit (CWB) is the refundable federal tax credit that supplements the Quebec work premium. Unlike the rest of Canada, Quebec has a specific agreement. The thresholds are adjusted annually.
Since 2023, the ACT has been paid automatically in the form of advance payments (called the basic ACT) if you were entitled to it the previous year. These are sent in three installments (July, October and January). They represent 50% of your estimated allowance. The rest is adjusted when you file your tax return. Finally, no request is required. If you were eligible last year, the Canada Revenue Agency (CRA) will send you the funds automatically by direct deposit or check.
To be eligible, you must have resided in Canada all year and be at least 19 years old as of December 31, OR reside with your spouse/common-law partner, OR reside with your child. You must not be a full-time student (unless you have a dependent child) and not have spent more than 90 days in prison during the previous year. The maximum income thresholds to benefit from it are as follows: $26,500 for a single person, and $41,500 for a couple or a family with children. However, you must have a minimum work income of $3,000. The maximum possible allowance is $1,518 for single individuals and $2,616 for couples and families.
For more information about this financial assistance, consult the CRA and Revenu Québec website.
Martine Dallaire, B.B.A.