It's officially happening.💰
The feds' plan to double the Goods and Services Tax (GST) credit for half a year has been approved. The goal of the limited-time bonus is to diminish the impact of inflation and make life more affordable for many Canadians. Officials estimate that about 11 million eligible taxpayers will be able to get more money back from the government as a result.
The measure, part of Bill C-30, the Cost of Living Relief Act (Targeted Tax Relief), received Royal Assent on October 18.
Residents who already receive the credit will start getting the increased payments in early November.
But are YOU eligible? Let's find out.
\u201cGood news for roughly 11 million Canadians across the country: Our legislation to double the GST Tax Credit for six months has received Royal Assent. Here\u2019s what that means:\u00a0https://t.co/pxUqj7TmEm\u201d— Justin Trudeau (@Justin Trudeau) 1666133541
Who is eligible for Canada's GST credit?
The GST credit gives back some of the money low-income residents pay in federal sales tax.
Recipients must be residents of Canada for income tax purposes and either be at least 19 years old, have (or had) a spouse or common-law partner, or are (or were) a parent who lives with a child.
Eligibility for the GST (TPS in French) credit depends on a household's size and income. Qualifying Canadians with low or modest incomes are automatically considered for the credit when they file their taxes.
Families who had a net income of less than $39,826 in 2021 will receive the maximum value. The credit value decreases above that amount depending on the living situation of the eligible person.
You can find the full eligibility criteria online.
How much was the GST payment before?
For the 2022-2023 pay periods, the maximum payments are:
- "$467 for singles without children;
- "$612 for married or common-law partners;
- "$612 for single parents; plus
- "$161 for each child under the age of 19."
So, for example, a single parent with two children and a net income under $39,826 would get $934 ($612 + $161 + $161) spread across two pay periods six months apart.
How much extra will you get now that GST payments are doubled?
The six-month credit doubling means recipients will receive an extra payment equal to one of the two six-month installments.
So, in the example of the single parent with two children, they'll get an extra $467 ($934 divided by two), as would a couple with two children who meets the income requirement (half of $612 + $161 + $161).
Singles with no children and a net income under $39,826 would get up to $234 in additional cash.
What are the GST payment dates?
Online, the government says GST credit payments "usually" go out on the fifth day of July, October, January and April, though it can take a few days for the money to actually show up in recipients' accounts.
The extra GST credit payments will automatically be sent out to qualifying people, starting on November 4.
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