In a move to support lower and middle-income Canadians, the Canada Revenue Agency (CRA) is set to issue an extra GST credit payment of up to $519. This financial boost, designed to help offset the rising cost of living, will be automatically provided to eligible individuals and families. If you’ve been receiving GST/HST credits, you might soon see this bonus in your account. In this article, we’ll cover who is eligible, when the payment will be made, and how to ensure you receive your share.
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What is the GST Credit?
The Goods and Services Tax (GST) Credit is a tax-free quarterly payment issued by the CRA to help individuals and families with low and modest incomes offset the GST/HST they pay on goods and services. The amount you receive is based on your income, family situation, and the number of children under 19 years old in your household.
Details of the Extra $519 GST Payment
As part of ongoing government efforts to provide financial relief, the CRA is set to issue an additional GST credit payment. This one-time payment of up to $519 will be added to the usual quarterly GST credit amount. This extra boost is meant to ease the burden of inflation and the rising cost of living.
Key Highlights:
- Maximum extra payment: $519.
- Automatically issued to eligible recipients.
- Payment date: Expected in early fall 2024.
Who is Eligible for the Extra GST Payment?
Eligibility for the extra $519 GST credit payment is determined based on the same criteria used for the regular GST/HST credit. If you already qualify for the GST credit, you don’t need to apply separately for this one-time payment—it will automatically be processed.
To qualify, you must meet the following requirements:
- Be a Canadian resident.
- Be at least 19 years old.
- Have a modest or low income, generally determined by your net family income as reported on your income tax return.
- You must have filed your 2023 income tax return.
The CRA will calculate your eligibility based on your 2023 tax return. Therefore, it is crucial to file your taxes on time to ensure you receive both your regular and extra GST payments.
How Much Will You Receive?
The exact amount of the extra GST payment will vary depending on your family size and income level. Here’s a breakdown of what to expect:
- Single Individuals: Up to $234.
- Married or Common-Law Couples: Up to $306.
- For Each Child Under 19: An additional $83.
For example, a single parent with two children could receive up to $400, while a married couple with two children could receive as much as $472.
When Will the Payment Be Issued?
The extra GST credit payment is expected to be distributed in early fall 2024. Those who are eligible should start seeing the payments in their bank accounts or via cheques in the mail shortly after the official payment date.
How to Ensure You Receive the Payment
To ensure you receive the extra GST payment, you must meet the eligibility criteria and, most importantly, file your 2023 tax return. The CRA uses your tax return to calculate your entitlement, so if you haven’t filed, you won’t receive the payment.
Additionally, if your financial situation has changed—such as experiencing a drop in income or a change in family status—it is important to update your information with the CRA to ensure you get the correct amount.
How Will You Receive the Payment?
If you’re already set up for direct deposit with the CRA, the extra GST credit will be automatically deposited into your bank account. If you’re not signed up for direct deposit, you’ll receive a cheque in the mail at the address on file.
To set up or update your direct deposit details, you can:
- Log into your CRA My Account.
- Contact your financial institution.
- Use the CRA mobile app.
Other Benefits Tied to the GST Credit
In addition to the one-time extra payment, eligible Canadians will continue to receive regular GST/HST quarterly payments. These payments are issued in January, April, July, and October, and the amount depends on your household income and family size.
If you are eligible for the GST credit, you may also qualify for other benefits, such as the Canada Workers Benefit, or provincial tax credits like the Ontario Trillium Benefit. It’s worth exploring all available programs to maximize your financial support.
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The CRA’s extra $519 GST credit payment is a welcome relief for many Canadians facing higher living costs due to inflation. If you’ve been receiving regular GST/HST credits, you don’t need to do anything extra to receive this one-time payment—it will be automatically deposited or sent to you by cheque.
To ensure you get your payment, make sure you’ve filed your 2023 tax return and that your information with the CRA is up to date. This extra financial boost, along with your regular GST credit, can provide meaningful assistance to help cover essential expenses.
Keep an eye on your bank account or mailbox this fall, and don’t hesitate to reach out to the CRA if you have questions about your eligibility or payment status!