Tag: GST

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COVID-19 – GST/HST credit payments information

Due to the extended tax filing date, it was announced that eligible Canadians, who are presently receiving the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, will continue to receive these payments until the end of September 2020.

On April 9, 2020, the one-time supplementary GST/HST credit payment was issued. People already receiving the GST/HST credit should have gotten it automatically.

Payment amounts will be based on information from 2018 tax return(s) if their 2019 tax return has not been assessed, and the CRA has not had time to calculate benefits and/or credits for the July to September 2020 payment.

You’re still required to file your 2019 income tax return. If the CRA is unable to assess your return by early September 2020, your estimated benefits and/or credits will stop in October 2020 and you’ll have to repay the estimated amounts that were issued to you starting in July 2020.

GST/HST credit amount increase

The one-time payment will be calculated based on information from your 2018 tax return.

The maximum amounts for the 2019-2020 benefit year will increase from:

  • $443 to $886 if you’re single
  • $580 to $1,160 if you’re married or living common-law
  • $153 to $306 for each child under the age of 19 (excluding the first eligible child of a single parent)
  • $290 to $580 for the first eligible child of a single parent.

There will be no changes to:

  • The family net income used to calculate the amount.
  • The family net income used to calculate the single supplement.

Payment dates

The Canada Revenue Agency usually send the GST/HST credit payments on the fifth day of July, October, January, and April.

The federal government is temporarily extending its guaranteed income supplement and allowance payments for seniors, if their 2019 income information hasn’t been assessed.

Check CRA website for the latest updates https://www.canada.ca/en/revenue-agency/services/child-family-benefits/gsthstc-payment-dates.html

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$5.5 billion GST rebates to help who lost income due to COVID-19

Covid-19 Canada GST rebate

Finance Minister Bill Morneau announced many different programs and services for workers who have lost income due to the COVID-19 pandemic. Morneau indicated that the Canada Child Benefit will be boosted, there will be GST rebates, and a suite of Employment Insurance measures.

Canada Revenue Agency (CRA) deferred the deadline for individuals to file income taxes and here is a list of measures related to GST:

  • For over 12 million low- and modest-income families, who may require additional help with their finances, the Government is proposing to provide a one-time special payment by early May 2020 through the Goods and Services Tax credit (GSTC). This will double the maximum annual GSTC payment amounts for the 2019-20 benefit year. The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples. This measure will inject $5.5 billion into the economy.
  • For over 3.5 million families with children, who may also require additional support, the Government is proposing to increase the maximum annual Canada Child Benefit (CCB) payment amounts, only for the 2019-20 benefit year, by $300 per child. The overall increase for families receiving CCB will be approximately $550 on average; these families will receive an extra $300 per child as part of their May payment. In total, this measure will deliver almost $2 billion in extra support.
  • Together, the proposed enhancements of the GSTC and CCB will give a single parent with two children and low to modest income nearly $1,500 in additional short-term support.
  • The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks.