This week, many Canadians received their year-end Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit payments. This tax-free payment, which the federal government distributes every three months, is intended to assist Canadians with low to modest incomes in managing the higher expenses of GST and HST on everyday goods and services. The timing of this October payment is especially beneficial because it comes just before the holiday season when many families face increasing expenses. Whether the payment is used to buy groceries or to cover other living expenses, it helps individuals in need.
The objective of the GST/HST Credit:
The GST/HST credit provides a financial lifeline for Canadians by reducing the burden of sales taxes levied on a wide range of products and services. Given the rising cost of living, particularly in key sectors such as housing and groceries, this program is critical for people with low or moderate earnings. The government provides targeted financial assistance to those in most need by making these payments, allowing vulnerable households to manage their basic requirements better.
How much did Canadians receive in October?
This week’s payments were based on participants’ 2023 tax returns and calculated using their adjusted family net income and the number of children under 19 registered for the Canada Child Benefit. Here is a breakdown of the sums the beneficiaries received:
- Single persons without children are eligible for up to $519 per year, with the October payment accounting for one-quarter of that amount.
- Married couples or common-law partners without children are eligible for up to $680 annually.
- Families with children: Received up to $179 per child during the year, with joint custody agreements dividing the money between parents.
October Payment Credited:
- For eligible Canadians, the final GST/HST credit for 2024 has been credited to their bank accounts. As usual, this contribution was tax-free and intended to provide financial assistance to individuals and families during the fall months, when rising heating prices and other seasonal expenses tend to strain household budgets.
- Delivery should be finished within a few days for those who receive their benefits via check. Meanwhile, those who signed up for direct deposit should have already seen the credit reflected in their bank accounts.
GST/HST Credit Eligibility Criteria:
To get this week’s reward, Canadians have to complete a specific criteria:
- The beneficiaries must be at least 19 years old.
- Residency requirement: They must have been Canadian residents for income tax purposes in the months before and during the payment’s issuance.
- Income requirement: Canadians with an adjusted household net income of $70,000 or less were eligible for the GST/HST credit.
- For people under 19, several exclusions allowed eligibility, including individuals with a spouse, common-law partner, or parents living with their child.
What Happens Next for GST/HST Credit Recipients?
The October payment is the final transfer for 2024, but Canadians will not have to wait long until their subsequent payment. The first credit for 2025 is set for January 3, 2025. This upcoming payment will continue to depend on the recipients’ 2023 tax returns. However, changes in income for 2024 may impact future costs. For example, a rise in adjusted family net income in 2024 may diminish the GST/HST credit beginning in July 2025. This means that individuals who received an increase in revenue this year could expect their credit to be rebalanced next summer.
