The Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit is a financial aid program by the Canadian government. It’s designed to help offset the GST or HST that people pay. This is especially beneficial for those with lower incomes. The credit is tax-free and distributed four times yearly – typically in July, October, January, and April.
Canada GST/HST Payment 2024
The Canada GST/HST Credit is an essential benefit for eligible residents, helping mitigate the burden of sales tax. Its automatic assessment through the annual tax return simplifies the process, ensuring that those who qualify receive their credits without additional paperwork. The actual credit amount depends on various factors, emphasizing the importance of accurate and timely tax filings.
GST/HST Credit Payment Schedule
The CRA typically issues GST/HST credit payments on the fifth day of specific months each year. These months are:
- July
- October
- January
- April
Payments are usually made via direct deposit or cheques mailed to the recipients. Direct deposit is faster and more secure. If the fifth day of the month falls on a weekend or a public holiday, the CRA usually sends the payments on the last working day before the fifth.
Note – Individuals must wait at least 10 days before contacting the authority.
GST/HST Credit Eligibility
To be eligible for the GST/HST credit, an individual must:
- Be a Canadian resident for income tax purposes.
- Be at least 19 years old, or have (or previously had) a spouse or common-law partner, or be (or have been) a parent and live (or have lived) with your child.
Individuals who are not Canadian citizens can still qualify if they meet the residency requirements.
Applying for the GST/HST Credit
For most residents, receiving this credit requires filing annual tax returns. However, for new residents of Canada, the process is slightly different.
Process for New Residents
- Filing Taxes:
- Regularly, individuals must file their taxes to receive the GST/HST credit. This applies even if there is no income to report.
- New residents must not complete their first tax return to qualify for this credit.
- Application Process for New Residents:
- To apply for the GST/HST credit, new residents of Canada must complete specific forms.
- If You Have Children: Complete Form RC66 (Canada Child Benefits Application). This form applies to all child and family benefits, including the GST/HST credit.
- If You Do Not Have Children: Complete Form RC151 (GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada).
- Submission:
- Once the relevant form is filled out and signed, it must be mailed to your tax centre.
How Much Can You Get?
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset the GST or HST that they pay. This credit is calculated based on several factors related to your income and family composition.
Key Factors Affecting GST/HST Credit
- Adjusted Family Net Income:
- Single Individuals: The amount is determined from line 23600 of your income tax return, or what it would be if a return were completed.
- Couples (Married or Common-Law Partnership): The net incomes of both partners are combined to establish the family net income.
- Children Under 19 Years Old:
- The credit considers the number of children under 19 years of age registered for the Canada Child Benefit and the GST/HST credit.
Credit Amounts for the 2022 Base Year (Payment Period July 2023 – June 2024)
- Single Individuals: Up to $496
- Married or Common-Law Partners: Up to $650
- Per Child Under 19: Additional $171 for each child
Importance of Updating Personal Information
- It’s crucial to keep personal information current to avoid underpayments or overpayments.
- The 2022 adjusted family net income changes can affect payments starting from July 2023.
The CRA recalculates the credit every July based on the information from your tax return from the previous year. The maximum amounts and income thresholds are subject to change each year, so checking the latest details on the CRA website or through official Canadian government resources is recommended.
The Canada GST/HST Credit is a helpful financial support for individuals and families with lower incomes, helping them offset the burden of sales taxes. The process is convenient through automatic assessment with annual tax returns, and the amount received varies based on personal financial circumstances.