Filing your income tax and benefit return even if you earned no income to report can open the doors to you for benefits and credits like the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit.

WHAT IS GST/HST CREDIT?

It is a non-taxable amount paid four times a year to individuals and families with low and modest incomes to help offset the goods and services tax/harmonized sales tax (GST/HST) that they pay. The Canada Revenue Agency (CRA) pays out the GST/HST credit quarterly to qualifying individuals and families on July 5, October 5, January 5, and April 5 every year.

AM I ELIGIBLE?

Yes you are:

-If you are a resident of Canada for income tax purposes at the beginning of the month in which the CRA makes a payment.

– When you file your taxes.

– If you have or had a spouse or common-law partner.

– If you are or were a parent and live or lived with your child.

– When you are at least 19 years old in the month before the CRA makes a quarterly payment.

Turning 19 before April 2024? File your 2022 tax return and the CRA will automatically determine your eligibility for the GST/HST credit. That way, if you’re eligible, your first payment will be issued in the quarterly payment after your 19th birthday!!

DID YOU KNOW? You don’t need to apply for the GST/HST tax credit, because since 2014, the Canada Revenue Agency automatically determines if you’re eligible for it when you file your tax return. Also, you cannot get the credit for a spouse, common-law partner, or child who meets any of the above conditions at the beginning of the month in which the CRA makes a quarterly payment. You can get credit for each of your children under the age of 19. If you don’t receive your GST/HST credit payment on the expected payment date, wait for working days before you contact the CRA. If you have a spouse, only one of you can receive the credit and the amount remains the same regardless of who receives it. It’s paid to the person whose return is assessed first.

NEWCOMER AND GST/HST CREDIT:

You can get the GST/HST credit even as a newcomer to Canada. 

If you have children, send a completed Form RC66, Canada Child Benefits Application, to apply for all child and family benefits. You must also fill out form RC66SCH, Status in Canada, and Income Information for the Canada Child Benefits Application to capture your citizenship and residency information, as well as your Statement of Income.

If you do not have children, then send a completed Form RC151, GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada for the year that you became a resident of Canada.

SOCIAL INSURANCE NUMBER AND GST/HST CREDIT:

You and your spouse or common-law partner need a Social Insurance Number (SIN) from Service Canada to get the GST/HST credit.

Don’t panic if Service Canada will not give you a SIN. You can still get the GST/HST credit if you meet all of the conditions listed under the Eligibility criteria. If this is your situation, you can attach a note to your Form RC151, GST/HST Credit Application for Individuals Who Become Residents of Canada, explain why you cannot get a SIN, and include a photocopy of any means of identification. 

HOW IS THE GST/HST CREDIT CALCULATED?

Your monthly payment is based on the number of children you have who are registered for the Canada child benefit (CCB) and GST/HST credit and your family’s net income for the previous year.

For the 2022 base year, with a payment period from July 2023 to June 2024, you could get up to:

• $496 if you are single
• $650 if you are married or have a common-law partner
• $171 for each child under 19 years of age

You can use the Child and family benefits calculator to get an estimate of your GST/HST credit.

WHAT’S NEXT?

Now you know what you stand to gain by filing your income tax, get started already! Make sure your taxes are done right, and choose a professional to help you in this journey.

Always update your personal information to avoid underpayments or overpayments, because an increase in your 2022 adjusted family net income could affect your payments starting in July 2023.