The GST/HST Credit is a tax-free payment that helps Canadian individuals and families with low to modest incomes offset the GST or HST they pay. This credit is distributed quarterly, with the next payment scheduled for this week.
Many Canadians rely on this credit to help manage their household budgets and cover essential expenses. In this blog, I outline key information about the upcoming GST/HST Credit payment.
Payment Date
The GST/HST Credit payment is scheduled for this week on October 5. Payments are typically deposited directly into recipients’ bank accounts on the fifth day of the month in January, April, July, and October. If the fifth falls on a weekend or holiday, the payment is made on the last business day before the fifth. Those who receive their payments by cheque should allow up to 10 business days for delivery.
Eligibility Criteria
Eligibility for the GST/HST Credit is based on several factors. To receive the credit, you must be a resident of Canada for income tax purposes and be at least 19 years old. Individuals under 19 can also receive the credit if they have a spouse or common-law partner, or if they are a parent. Eligibility is determined by your family’s net income from the previous year’s tax return.
Payment Amount
Your GST/HST Credit payment depends on your family size and net income. The maximum annual amounts for the 2024-2025 benefit year are $519 for single individuals, $680 for married or common-law couples, and $179 per child under 19. These amounts are divided into four quarterly payments. The credit starts to reduce when the family’s net income exceeds a certain threshold.
Calculation Method
The Canada Revenue Agency calculates your GST/HST Credit automatically when you file your income tax return. The calculation is based on your family’s net income from the previous year. It’s important to file your taxes on time, even if you have no income to report, to ensure you receive the credit if you’re eligible. The CRA uses this information to determine your eligibility and payment amount for the upcoming benefit year.
Notification of Payment
Recipients of the GST/HST Credit typically receive a notification from the CRA about their eligibility and payment amount. This notification is usually sent out in July and outlines the payment amounts for the entire benefit year. You’ll receive this notification in your online account if you’ve signed up for online mail with the CRA.
Direct Deposit
The fastest and most secure way to receive your GST/HST Credit is through direct deposit. If you haven’t already set up direct deposit, you can do so through your online CRA MyAccount, by contacting your financial institution, or by calling the CRA. Direct deposit ensures you receive your payment on time without the risk of lost or stolen cheques.
Impact of Life Changes
Certain life changes can affect your GST/HST Credit eligibility or amount. These include changes in marital status, the birth of a child, a child turning 19, or significant changes in income. Report these changes to the CRA as soon as possible to ensure your credit is calculated correctly. You can update your personal information through your CRA online account or by contacting the CRA directly.
Retroactive Payments
In some cases, you might be eligible for retroactive GST/HST Credit payments. This can happen if you were eligible for the credit in previous years but didn’t receive it, often due to not filing taxes. You can request a retroactive payment by filing or adjusting your tax returns for the relevant years. The CRA can issue retroactive payments for up to three years.
GST/HST Credit for Children
Children under 19 are included in their parents’ GST/HST Credit calculation. The credit amount increases for each eligible child in the family. When a child turns 19, they may become eligible for their own GST/HST Credit, provided they meet the other eligibility criteria.
Interaction with Other Benefits
The GST/HST Credit can interact with other government benefits. For example, receiving the credit doesn’t affect your eligibility for other federal, provincial, or territorial benefits. However, the income used to calculate your GST/HST Credit might affect your eligibility for income-tested benefits.
Appeals Process
You can appeal if you disagree with the CRA’s decision about your GST/HST Credit eligibility or amount. You can start by contacting the CRA to discuss the issue and provide any additional information. If you’re still not satisfied, you can file a formal objection.
Impact on Social Assistance
Receiving the GST/HST Credit generally doesn’t affect your eligibility for social assistance programs. In most provinces and territories, the GST/HST Credit is not counted as income when determining eligibility for social assistance. However, it’s always a good idea to check with your local social assistance office to understand how the credit might interact with other benefits you receive.
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GST/HST Credit Payment Increases to $519
GST/HST Credit Payment Increases to $519