Here is a brief summary of the provincial budget highlights that may affect your wallet.
The $500 to counter inflation
Contrary to popular belief, you will not receive a check for $500 in the mail. This $500 will be included in your 2021 tax return. For example, if you are entitled to a tax refund of $354.98 for the 2021 tax year, you will receive a check for $854.98 ($500 + $354.98).
Beware of scammers, they are already at work with texts, emails and phone calls. No one is allowed to send you this $500. It will be incorporated into your 2021 tax return.
Who will receive this $500 credit? Any Quebecer 18 years of age or older who files a tax return for the 2021 tax year. Their taxable income must be $100,000 or less. If a couple earns $125,000 and $75,000, your accountant should look into the possibility of income splitting or concentration of expenses (drugs and health care, home care). Unfortunately, it is too late to make an additional contribution to your RRSP.
Purchase of electric and hybrid vehicles
The grant amounts have decreased slightly, but it does not appear that the maximum price has changed.
7,000 for new fully electric vehicles;
5,000 for new plug-in hybrids;
3,500 for used all-electric vehicles.
In addition to these amounts, there are federal government incentives.
What about our children in this budget?
Many of us are parents and even grandparents.
Interest on student debt. The government will continue to pay interest on student debt to financial institutions until March 31, 2023.
Home ownership. NOTHING. Remember that young families can use the Home Buyers' Plan (HBP) to make the 20% down payment on their first home.
There are many other provisions in Minister Girard's budget. We wanted to highlight the ones that we believe are most relevant to you.