A Guide to Claiming the GST/HST Credit

The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are value-added taxes in Canada that most consumers pay on goods and services. To alleviate the financial burden these taxes might place on individuals with lower or modest incomes, the Canadian government provides a refundable tax credit known as the GST/HST credit.

The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are value-added taxes in Canada that most consumers pay on goods and services. To alleviate the financial burden these taxes might place on individuals with lower or modest incomes, the Canadian government provides a refundable tax credit known as the GST/HST credit.

Who Is Eligible?

You are generally eligible for the GST/HST credit if you are at least 19 years old and a Canadian resident for income tax purposes during the month before the CRA makes a payment and at the beginning of the month the CRA makes a payment

If you are under 19 years old, you must meet at least one of the following conditions during the same period:

• you have (or had) a spouse or common-law partner
• you are (or were) a parent and live (or lived) with your child

How Is the Credit Calculated?

The amount of the GST/HST credit you receive is determined based on your family income from the previous tax year. The Canada Revenue Agency (CRA) calculates this amount using information from your annual tax return. If you are eligible, the CRA will automatically determine your entitlement when you file your income tax return.

How to Claim the GST/HST Credit

To claim the GST/HST credit, you need to file your annual income tax return, even if you have no income to report. Ensure that you keep your personal information, such as your marital status and address, up to date with the CRA, as this can affect your eligibility and the amount you receive.

Payment Schedule

The GST/HST credit is paid quarterly, typically in January, April, July, and October. The payments are deposited directly into your bank account or sent by cheque if direct deposit is not set up.

Additional Considerations

Married or Common-Law Couples: If you're married or in a common-law relationship, only one person in the household can receive the GST/HST credit. The credit amount is based on your combined family income.

Changes in Circumstances: If your circumstances change (e.g., marital status, income, number of children), it’s essential to inform the CRA, as this may impact your credit eligibility or amount.

Claiming the GST/HST credit is a simple yet effective way to receive financial relief on the taxes you pay throughout the year. By ensuring your tax return is filed accurately and on time, you can take full advantage of this benefit. To be sure you are maximizing your credit, contact our office for assistance