Are you a Canadian citizen who files tax returns every year? If your answer is in the affirmative, you could be eligible for a tax credit on the GST (Goods and Services Tax) and HST (Harmonized Sales Tax) payments that you have made. What exactly is GST/HST, who is eligible, and when are the GST payment dates for the year 2022? Keep reading on.
Overview of GST/ HST Credit
The GST/HST refundable credit is defined as a non-taxable amount that is paid to low- or modest-income individuals or families to offset all – or a portion – of the GST and HST tax payments that they have made. This credit payment is made four times each year.
The GST/HST credit amount is calculated based on the following factors:
- Base year or the tax return year that is used to determine the GST/HST credit.
- Payment period or the 12-month period when the GST/HST credits are paid.
For example, for tax returns made in 2020 (base year), the GST/HST credit payment period begins from July 2021.
Who is eligible for GST/HST Credit?
If you are a Canadian resident who is eligible to pay income tax, then you are eligible for the GST/HST credit. On a finer point, you are eligible if you are a Canadian resident at the beginning of the month (and the previous month) when the Canada Revenue Agency (CRA) makes the payment.
The GST/HST amount received depends on your family’s net income as well as the number of minor children under your care. You can take a look at the benefits calculator provided by the Canada Revenue Agency to estimate the refund amount.
Other eligibility criteria for GST/HST credit include:
- You must be at least 19 years of age.
- You have or have had a spouse or common-law partner.
- You are (or were) a parent and are living (or previously lived) with your child.
If you are a parent with shared child custody, you are eligible for 50% of the GST/HST credit amount. The only exception is if your child is being legally and financially taken care of by a child welfare agency.
Additionally, you will not be eligible for the GST/HST credit, if you are a foreign officer or diplomat posted in Canada or have been confined to a prison in Canada for at least 90 days.
There is also an income threshold for you to be eligible for the GST/HST tax refund. The threshold amounts can be viewed as below for the period between July 2021 and June 2022:
|Family structure||Adjusted Family net income|
|The parent with 1 child||$53,992|
|Single parent with 2 children||$57,132|
|Single parent with 3 children||$60,272|
|Single parent with 4 children||$63,412|
|Married/common-law couple with no children||$50,852|
|Married/common-law couple with 1 child||$53,992|
|Married/common-law with 2 children||$57,132|
|Married/common-law with 3 children||$60,272|
|Married/common-law with 4 children||$63,412|
What are the GST payment dates for 2021?
Let’s take a look at the GST payment dates for 2022.
The payment dates for GST and HST this year are:
- January 5, 2022
- April 5, 2022
- July 5, 2022
- October 5, 2022
For your 2021 tax returns, you will receive your credit payments in July 2022, October 2022, January 2023, and April 2023. In the event your GST/HST credit (as calculated in July 2022) is less than $50 each quarter, the entire amount (for all quarters) will be paid in July 2022.
If you have just turned 19 years of age and are eligible for the GST/HST credit, your first credit payment will be made in the month – that comes after your 19th birthday.
For some reason, if there is a delay in payment on the mentioned GST Canada dates, you need to wait for an additional 10 working days before contacting CRA at 1-800-387-1193.
How much credit can you get?
Finally, how much GST/ HST credit can you receive each year? That would be determined by the following factors:
- Your family income
- If you are a single earning member, your family income would be the amount mentioned on line 23600 of your filed income tax return.
- If you have a working spouse or common-law partner, then your net family income would be the sum of both your incomes.
- The number of children (under the age of 19 years) registered for child benefit and are eligible for GST/HST credit.
You can receive a credit amount of:
- $157 for each child under the age of 19 years
- $456 if you are a single individual
- $598 if you are married or living with a common-law partner.
The Canada Revenue Agency can recalculate your GST/HST credit amount in case of any of the following events:
- Change in family income
- An eligible child turning 19 years old
- Change in your marital status
- Death of the credit recipient
- Any change in shared child custody
The Bullish takeaway
As an eligible resident of Canada, you need to keep track of the GST payment dates to ensure that you receive the credit payments on time. Through this article, we have discussed who is eligible to receive the GST/HST credit payment from the CRA – along with the approximate amount that you can hope to receive.