GST Credit: How to apply for the Goods and Services Tax Credit

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GST Credit

Eligible low and modest income Canadian families can receive quarterly payments to offset amounts paid for Goods and Services Tax, as well as Harmonized Sales Taxes. This is how to apply for the GST Credit.




WHAT IS THE GST/HST CREDIT?

The Goods and Services Tax (GST) credit is a quarterly payment that helps low and modest income Canadians offset GST amounts they must pay.

The GST/HST credit is also called the Harmonized Sales Tax (HST) credit.

The GST/HST credit can also include payments from different provincial and territorial programs.




COVID-19 INCREASE TO THE GST/HST CREDIT AMOUNT

Canadians will get the extra payment amount if they normally receive the GST credit and have already filed their 2018 tax return.

Payments for the GST/HST credit will be issued on April 9, 2020.

Canadians who were not eligible to receive the GST credit previously, but have already filed their 2018 tax return may be eligible to receive a one-time credit based on their family net income.

Amounts received will be calculated using the information from the 2018 income tax and benefit return.

Canadians who did not file taxes in 2018 will not receive the one-time GST/HST credit.

Canadians can still file their 2018 taxes so that they can become eligible for benefits and credits.

Benefits and credits will be retroactive.

Canadians not eligible for the GST/HST credit may check to see if they are eligible for the Canada Emergency Response Benefit (CERB).




HOW MUCH IS THE GST/HST CREDIT INCREASE?

The GST/HST credit increase will depend on the information on the 2018 tax return.

The maximum amounts for 2019-2020 are:

  • CAD$886.00 for single Canadians (up from CAD$443.00)
  • CAD$1,160.00 for married or common-law Canadians (up from CAD$580.00)
  • CAD$306.00 for every child under 19 (except for the first eligible child of single parents, up from CAD$153.00)
  • CAD$580.00 for the first eligible child of a single parent (up from CAD$290.00)

Take note that there will be no changes to the family net income used to calculate the GST amount, nor will the family net income be used to calculate the single supplement.

For Canadian parents who share custody, current rules apply. They will receive half of the amount they would otherwise receive in respect to a shared custody child.




ONLY 2018 TAXES NEEDED TO RECEIVE THE GST/HST CREDIT

The GST/HST credit payment will be based on 2018 taxes.

In order to receive the GST credit for the 2020 benefit year, Canadians must file their 2019 income tax and benefit return.

For more information about applying for the GST Credit, click here: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit.html




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