The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit is a vital financial support program for Canadians. Designed to help offset the cost of sales taxes, this credit can offer significant relief, especially for low- and moderate-income individuals and families. With the 2024 payment schedule now set, many Canadians are eager to understand when to expect their refunds, how to ensure they qualify, and how to avoid any potential delays. This guide covers everything you need to know about the GST/HST credit for 2024.
What is the GST/HST Credit?
The GST/HST credit is a tax-free payment issued by the Canada Revenue Agency (CRA) to help eligible individuals and families with the sales taxes they pay on everyday goods and services. The credit is particularly aimed at easing the financial strain for those with lower or moderate incomes.
Why is this Credit Important?
For millions of Canadians, the GST/HST credit:
- Alleviates financial pressure from the indirect taxes on essential goods and services.
- Helps budget monthly expenses, offering a straightforward way to receive tax relief.
- Requires no paperwork for most recipients, as it’s automatically processed once you file your tax return.
How Much Can You Receive in 2024?
For the period between July 2024 and June 2025, the GST/HST credit provides the following maximum payments:
- $519 for single individuals
- $680 for married or common-law couples
- $179 for each child under 19 years old
Example: A single parent with two children could receive:
- $519 (for the single adult)
- $179 (for the first child)
- $179 (for the second child)
This totals $877 annually, paid in quarterly installments of approximately $219.25.
2024 GST/HST Payment Schedule
Payments for 2024 are scheduled to be made on the following dates:
- January 5, 2024
- April 5, 2024
- July 5, 2024
- October 4, 2024
Who is Eligible for the GST/HST Credit?
Eligibility for the GST/HST credit is based on:
- Canadian Residency: You must be a resident of Canada for tax purposes.
- Income Limits: Your family’s net income, as reported on your tax return, must be within the qualifying range. For a single person without dependents, the income limit is around $49,166.
- Filing Your Taxes: To qualify, you must file your tax return annually, even if you don’t have any income.
The CRA uses the information from your tax return—such as income, family size, and marital status—to automatically determine your eligibility and the amount you’ll receive.
How Does the GST/HST Credit Compare to Other Benefits?
While the GST/HST credit provides relief for sales taxes, other financial aid programs also support Canadians:
- Canada Child Benefit (CCB): Supports families with children, issued monthly.
- Climate Action Incentive: Helps offset carbon taxes, issued annually.
If you qualify for the GST/HST credit and have children, you may also be eligible for the CCB, which can significantly increase your financial support.
Steps to Ensure You Receive Your 2024 GST/HST Credit
- File Your Taxes on Time: Ensure you submit your tax return annually, even if you have no income. This is essential for qualifying for the GST/HST credit.
- Set Up Direct Deposit: Direct deposit is the fastest way to receive your payments. You can update your banking details online through the CRA’s portal or your financial institution.
- Update Your Personal Information: Notify the CRA of any changes to your marital status, dependents, or address to avoid discrepancies in your credit calculation.
Common Issues and How to Address Them
Delayed Payments:
If your payment is delayed, wait 10 business days past the scheduled payment date before contacting the CRA. You should also confirm your tax return has been filed, your address is correct, and that you’ve set up direct deposit.
Incorrect Payment Amounts:
If the payment amount seems incorrect, check your Notice of Determination from the CRA, which details how the credit was calculated. If necessary, update your income details or file an adjustment request.
Frequently Asked Questions
- Can the GST/HST credit be garnished for debts?
No, the GST/HST credit is protected from garnishment, even if you owe money to the government. - How is the GST/HST credit calculated for families?
The CRA combines your and your spouse’s net incomes. Dependents under 19 years of age add $179 each to the total annual credit. - Can I claim the credit if I’m new to Canada?
Yes, you can qualify for the GST/HST credit if you meet the residency requirements and file a tax return. - Is there a deadline for retroactive claims?
You can claim retroactive GST/HST credits for up to four years if you were eligible but missed filing your tax returns.
Practical Scenarios
Scenario 1: Single Adult
- Net Income: $30,000
- GST/HST Credit: $519 annually, paid quarterly as $129.75.
Scenario 2: Couple with One Child
- Combined Income: $50,000
- GST/HST Credit: $680 (Couple) + $179 (Child) = $859 annually, or $214.75 per quarter.
Conclusion
The GST/HST credit is a key financial benefit that helps millions of Canadians manage the cost of sales taxes. By understanding the eligibility criteria, payment schedule, and steps to avoid delays, you can ensure you receive your entitled payments on time. Make sure to file your taxes, set up direct deposit, and keep your information updated with the CRA to make the most of this valuable credit.
