In response to rising inflation, Canada is providing an additional Goods and Services Tax (GST) payment to support low- and middle-income individuals and families.
This tax-free payment, available alongside the regular GST/HST credit, is set to help eligible Canadians cover essential expenses. Here’s a comprehensive look at the eligibility, payment amounts, and steps to receive this additional GST benefit.
Overview
| Detail | Information |
|---|---|
| Payment Amount | $519 (single), $650 (married couple), $171 per child |
| Eligibility | Canadian residents, 2023 income tax return filed, income within set limits |
| Payment Dates | January 3, 2025, and April 4, 2025 |
| Application | Automatic (based on income tax return) |
| Administered By | Canada Revenue Agency (CRA) |
| Purpose | Financial relief for low- and middle-income Canadians |
What Is Canada’s Additional GST Payment?
The additional GST payment is a tax-free benefit provided quarterly by the CRA to assist eligible Canadians with rising living costs. This benefit is distributed automatically based on each recipient’s 2023 income tax return, and there is no separate application required.
Payment Amounts and Income Eligibility
The amount of the additional GST payment depends on household size and income level, with the following base amounts:
- Single Individuals: $519 per year
- Married Couples: $650 per year
- Each Child (under 19): An additional $171 per year
For example, a family with two parents and two children could expect an annual additional GST payment of approximately $992 ($650 for the couple and $342 for the two children).
Eligibility Criteria
To qualify for the additional GST payment, applicants must meet the following criteria:
- Residency: Must be a Canadian resident for tax purposes.
- Income Limit: The income threshold varies:
- For a single individual, annual income should not exceed around $35,000.
- Income limits for married couples and families depend on the number of dependents.
- Age: Must be at least 19, unless married or supporting a child.
- 2023 Income Tax Return: Filing a 2023 income tax return is mandatory to qualify, as the CRA assesses eligibility based on reported income.
How to Apply
Applying for the additional GST payment is straightforward, as it doesn’t require a separate application form. Here’s a step-by-step breakdown:
- File Your 2023 Income Tax Return: The CRA calculates eligibility and payment amounts from the income tax return, so it’s essential to file by April 30, 2024.
- New Residents: Newcomers must complete Form RC151 to apply for the GST/HST credit.
- Automatic Payment: Once eligible, payments will be sent by direct deposit or cheque on the scheduled dates.
Important Dates for Additional GST Payments
The CRA will disburse the payments quarterly. Scheduled payment dates are as follows:
| Payment Date | Method |
|---|---|
| January 3, 2025 | Direct Deposit or Cheque |
| April 4, 2025 | Direct Deposit or Cheque |
Document Requirements
For most recipients, no additional documentation is required beyond the 2023 income tax return. However, new residents or those with specific circumstances may need to provide proof of income, residency, or family status.
Additional Notes
- No Fees: This is a tax-free benefit provided without application fees.
- Income-Based: The CRA recalculates eligibility annually based on tax returns, ensuring that only those within the income limit receive the benefit.
- Verify Details: Ensure all personal information, especially bank details, are up to date in your CRA account.
Staying Updated
Given that misinformation can easily spread, verify your eligibility and payment status through the CRA’s official channels, such as CRA My Account, to ensure you receive accurate information.
This additional GST payment, combined with regular benefits, provides valuable financial support to Canadians, particularly during periods of high inflation. If you qualify, expect to see these amounts in your bank account or via cheque on the designated payment dates.
