Understanding the GST/HST Credit
The GST/HST credit is a tax-free quarterly payment made to eligible low- and moderate-income Canadian individuals and families. It helps offset the Goods and Services Tax/Harmonized Sales Tax (GST/HST) they pay on goods and services. It is not a refund of all the GST or HST paid, but rather a support payment to assist with the cost of GST/HST.
Who is Eligible?
To be eligible for the GST/HST credit, you must generally:
- Be a Canadian resident for tax purposes.
- Have filed your income tax return.
- Meet the income requirements.
- Be 19 years of age or older (or have a spouse common-law partner, or a child).
How to Apply:
You generally do not need to apply separately for the GST-HST credit. When you file your income tax return, the CRA automatically determines your eligibility.
- New Residents: If you are a newcomer to Canada, you may need to apply. You’ll need a Social Insurance Number (SIN). The form you need is the RC151, GST-HST Credit Application for Individuals Becoming Residents of Canada Who Do Not Have Children. If you have children, you would apply for the Canada Child Benefit (CCB) which also includes the GST-HST credit for children.
- Retroactive Payments: You may be able to request retroactive payments for up to 10 years, not three.
Children and the GST/HST Credit:
The GST/HST credit for children is now included in the Canada Child Benefit (CCB). If you are eligible for the CCB, you will automatically receive the GST/HST credit for your children.
How Much is the GST/HST Credit?
The amount you receive depends on your family income and composition. The amounts change annually. The CRA website has the most up-to-date information on the current benefit amounts. It’s best to consult the official CRA website for the current benefit calculation. The amounts provided in the original text are outdated.
Payment Dates:
The CRA typically issues GST-HST credit payments on or around the 5th of July, October, January, and April.
Key Points to Remember:
- File Your Taxes: Filing your income tax return is essential for receiving the GST/HST credit.
- CRA Website is the Best Source: The CRA website (canada.ca/cra) is the most reliable source for information about the GST/HST credit, eligibility criteria, and payment amounts.
- Beware of Outdated Information: Tax and benefit information can change, so always check with official sources.
It’s always recommended to consult the official CRA website or a qualified tax professional for the most accurate and up-to-date information regarding the GST HST credit. The information provided in the original text is not entirely accurate and should not be relied upon.
