Mark your calendars, Canadian taxpayers. On January 3rd, the Canada Revenue Agency (CRA) will make its first GST/HST payment for the year.
This payment is being made to assist low- and moderate-income individuals and families in compensating for the harmonized sales tax (HST) and goods and services tax (GST) they pay each year.
Here is all the information you need to make sure you don’t miss out on this valuable benefit, including eligibility, the application process, payment amounts, and other important details.
The CRA will issue a new payment worth more than $500 for eligible taxpayers
The GST/HST credit is a quarterly, non-taxable payment that helps low-income Canadians and families cover their expenses.
The credit ensures that these households can balance the effects of the GST/HST they pay on regular goods and services. It is important to note that you must meet the following requirements to be eligible for the GST/HST credit:
- Canadian Residency: For income tax purposes, you must be a resident of Canada at the start of the month in which the CRA makes a payment.
- Age Requirement: In the month of the credit payment, you must be at least 19 years old.
- Particulars for Children Under 19: You are eligible if you are under 19 and:
- You are either in a common-law partnership or married, or
- You live with your child as a parent.
How can Canadian taxpayers apply for the GST payment from the CRA?
Applying for the GST payment can be challenging if you do not follow the necessary steps. Nonetheless, we’d like to share with you the most important things you should consider before requesting this payment.
- For Canadian residents: In 2023, even if you have no income, you still need to file your income tax return. Based on your tax return, the CRA will automatically determine whether you are eligible or not.
- For Newcomers to Canada: You might need to submit a second application if you are a newcomer, such as an international student, someone with a work permit, or a recent permanent resident:
- Complete Form RC151 GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada if you are not a parent.
- To give information about their residency and income, parents must fill out Form RC66 Canada Child Benefit Application and Form RC66SCH Status in Canada and Income Information.
How much money can Canadian taxpayers earn with their GTS payment?
Your family circumstances and income for the 2023 tax year will determine how much you pay. The maximum amount you may receive for the July 2024-June 2025 payment period is as follows:
- Personal: Up to $519
- Common-law and married Couple: Up to $680 for each child under the age of 19: $179 extra
Please keep in mind that the CRA will determine your GST/HST credit based on your 2023 tax return. After processing your return, you will receive a notification in July 2024 regarding your eligibility for the GST/HST credit and the quarterly payment amount.
Finally, if your GST payment hasn’t been deposited by January 15, 2025, check your CRA My Account for eligibility confirmation, update your banking or mailing address, and call the CRA’s helpline at 1-800-387-1193.
Eligible Canadians may benefit financially from the upcoming GST/HST payment. The GST/HST credit is a valuable benefit that alleviates financial stress for anyone, whether a long-term resident, student, or newcomer.
Take advantage of these benefits and ensure that your tax returns are current. For those who are new, timely applications can help you get the credits you are eligible for right away.