The Canada Federal GST/HST Credit is a tax-free quarterly payment meant to help individuals and families with low and modest incomes offset the GST/HST they pay. For the July 2023 to June 2024 benefit period, the maximum amounts you could receive are as follows:
- Single individual without children:
- Up to $496 per year.
- Married or common-law couple:
- Up to $650 per year (combined).
- For each child under 19:
- An additional $173 per child.
- Single parent:
- Receive the base credit of $496 plus $173 for each child.
The amount is based on the family’s adjusted net income from the previous tax year (2022). The payments are issued in July, October, January, and April.
How to Apply for the GST/HST Credit
Applying for the GST/HST credit is usually automatic when you file your annual income tax return. Here’s how it works:
- Automatic Enrollment: If you are eligible and have filed a tax return, the CRA automatically assesses your eligibility based on your income and family situation.
- For Newcomers or Non-Filers: If you haven’t filed a tax return or are new to Canada, you need to apply separately. Newcomers can fill out Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada). You must submit this form to the CRA to determine eligibility for the current year.
- Filing on Time: Even if you don’t owe taxes, filing your tax return on time is essential to receive the GST/HST credit. Missing your filing deadline could delay your payments.
How the GST/HST Credit is Calculated
The CRA calculates your GST/HST credit based on several factors, including:
- Your Family’s Adjusted Net Income: The credit is income-tested, meaning the amount you receive depends on your household’s adjusted net income from the previous tax year.
- Marital Status: Whether you’re single, married, or living in a common-law relationship affects how much you receive.
- Number of Children: You’ll receive an additional credit amount for each child under 19 years of age. This amount is added to your base credit.
For example, let’s consider two scenarios:
- Single Individual: If your adjusted net income is below the income threshold, you could receive up to $496 per year.
- Family of Four: A married or common-law couple with two children and a combined income below the threshold would receive up to $650 for the couple plus $173 for each child, totaling $996.
The CRA uses a specific income threshold to determine the full amount, and once your income exceeds a certain limit, your credit decreases.
Receiving and Managing Your Payments
Once you’re eligible for the GST/HST credit, payments are made quarterly. Here’s what you need to know:
- Payment Methods: Payments can be directly deposited into your bank account if you’re set up with direct deposit. Otherwise, you’ll receive a cheque by mail.
- Payment Dates: The credit is paid out four times a year: in July, October, January, and April.
- Tracking Payments: You can track your payment history through your CRA MyAccount or by calling the CRA directly.
If your payment seems delayed or missing, it’s essential to verify your direct deposit information or check if you’ve filed your tax return correctly.
GST/HST Credit for Specific Groups
Certain groups of individuals may have unique circumstances when it comes to the GST/HST credit. Here’s how it applies to:
- Seniors: Seniors are eligible if their income is below the set threshold. If they receive other government benefits (like Old Age Security), it doesn’t disqualify them from getting the GST/HST credit.
- People with Disabilities: Individuals with disabilities can still receive the GST/HST credit. If they are eligible for the Disability Tax Credit, they may receive a higher GST/HST credit due to their reduced income.
- Newcomers to Canada: New immigrants may need to fill out the RC151 form to apply for the credit in their first year in Canada. After that, it’s automatically calculated based on their tax return.
- Indigenous Populations: While goods purchased on a reserve may be exempt from GST/HST, Indigenous individuals may still qualify for the GST/HST credit based on their income.
What to Do if You Don’t Receive the Credit
If you are eligible but don’t receive your GST/HST credit, follow these steps:
- Confirm Eligibility: Check your CRA MyAccount or your most recent Notice of Assessment to see if you’re eligible. Ensure your income and family status meet the criteria.
- Review Your Tax Return: Make sure you’ve filed your tax return on time, as this is the primary requirement for receiving the credit.
- Check Direct Deposit Information: If you’ve opted for direct deposit, verify that your banking information is accurate. Any mistakes here could result in missed payments.
- Contact CRA: If all else fails, reach out to the CRA to inquire about your credit status. You can do this by phone or by logging into your CRA account online.
How to Report Changes to the CRA
Changes in your financial or personal situation could affect the amount of GST/HST credit you’re entitled to receive. It’s important to notify the CRA about:
- Income Changes: If your income significantly increases or decreases, it may affect your credit amount. The CRA will reassess the credit in the next tax year based on the updated information.
- Marital Status: Whether you get married or divorced, your family situation changes the amount of credit you receive. Always inform the CRA about marital status changes to avoid over- or under-payment.
- New Children or Dependents: If you have a new child or start supporting a dependent, notify the CRA to increase your credit.
To report these changes, you can either log in to your CRA MyAccount or call the CRA directly.
Frequently Asked Questions (FAQ)
Q1: How much can I receive from the GST/HST credit?
A: The maximum credit for the 2023-2024 period is $496 for a single person, $650 for a couple, and $173 for each child.
Q2: What happens if I forget to file my taxes?
A: You won’t receive the credit until you file your taxes. The CRA requires an annual tax return to assess your eligibility.
Q3: How do I apply for the GST/HST credit as a newcomer to Canada?
A: You’ll need to submit Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada) to apply in your first year. After that, your eligibility is based on your tax return.
Q4: Can I still receive the GST/HST credit if I owe taxes?
A: Yes, the GST/HST credit is not affected by any taxes you owe. However, the CRA may use the credit to offset amounts you owe to the government.
Q5: Can I lose my eligibility for the GST/HST credit?
A: Yes, if your income surpasses a certain threshold or your family situation changes (such as a change in marital status), your credit amount may decrease or stop.
