Taxpayers with low incomes can now take advantage of GST/HST credits. These tax-free quarterly refunds help low-income families that struggle to make ends meet. Throughout this article, you’ll learn all about GST/HST credits, how to qualify for refunds, and how much you can expect to receive.
The HST Housing Rebate is yet another refund option available to home-owners who have either built a new house or substantially renovated their existing home. The article discusses CRA’s recent changes, which aims to improve the lives of low- and middle-income brackets. Also, find out the GST refund workflow full list here.
What are GST/HST credits? Explore the eligibility criteria
The GST/HST tax credits are tax-free amounts paid every quarterly to families with a net income of less than $63,412. The refunds are meant to return a portion of the GST/HST they pay each year. GST/HST credits must meet several criteria set by CRA. Here are a few of them that can qualify you for credits.
- You must be a Canadian citizen, at least a month prior or at the beginning of the month when the CRA makes payment.
- You must satisfy one of the following conditions:
- You must be 19 years or older.
- You have/had a common-law partner or a spouse
- You are/were a parent living/ lived with your child.
- HST credits are meant for low-income families. You will be eligible for a refund only if your net income is below $48,012, if you are single. The net income eligibility requirement is less than $63,412 for a married couple with up to 4 kids.
Visit the Government of Canada website for more details about income and other eligibility requirements.
How are HST credits calculated?
GST/HST credit payments are calculated based on your tax returns from the previous year. This means that if your previous year’s tax return is eligible for a refund, you are entitled to get your cheque by the end of this year or when the current year’s payment period begins.
Additionally, your net income and the count of your children you have registered for the credits, also determine your HST credit. Certain conditions may affect how HST credit is calculated. Some of these conditions are.
- Your child turns 19 years and is no longer eligible for refunds unless employed.
- A change in net income can lead to a reassessment
- The recipient is no more
- The marital status changes
- The number of kids under care, changes or you start/stop sharing a child’s custody.
CRA advises recipients to update these changes with the appropriate authorities to ensure they continue to receive the HST credit payments. For 2021, you are eligible to receive the following amount from HST credits:
- For a child below 19 years- $157
- For a single individual-, $456
- For a married individual- $598
How should you apply for GST/HST credits?
There is no formal application process for HST credits. Instead, make sure that you file taxes every year, without fail. The CRA monitors your tax returns diligently and calculates your eligible credit amounts. New residents can apply for HST credits by submitting Form RC66. A single individual can claim GST/HST credits by submitting Form RC151.
Some provinces and territories also offer benefits based on GST/HST credits. You are automatically eligible for these benefits if you are a regular taxpayer.