January is the start of the new year, which brings with it new opportunities and desires. For many Canadians, it also means taking a much-needed break thanks to the first GST payment, a state benefit that helps balance payments on everyday goods and services.
This benefit (which is not taxable) is the difference that households require in difficult situations to balance their basic expenses.
So, if you’ve ever wondered how this credit works or if you’re eligible for it, this is the place!
With a little information, planning, and a little luck, you should be able to receive this assistance without further delay. How will this impact your economy? Let us explain it.
Let’s go step by step, what is this credit?
The so-called GST is a quarterly credit designed to help (as previously stated) low-income families balance the costs associated with the HST on everyday goods and services. To clarify, the GST is the Tax on Goods and Services, and the HST is the Harmonized Sales Tax paid throughout the year.
This benefit is calculated based on each household’s annual income, and additional payments may be made for spouses, common-law partners, and children under the age of 19.
What are the key points?
- This payment has four issues per year
- The amount is based on the income tax return for the previous year
- Eligible recipients can receive the payment for themselves, their spouse, common-law partner, and their children under 19 years of age
What are the key dates?
Grab a pen and paper and write them down on your calendar, because for 2025 the credit, as we have said, will be distributed in four payments, which will be as follows:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
The wait to receive this payment is 10 business days after these dates, that is, if it does not arrive on those days, it is important that you contact the CRA to confirm that you are still eligible to receive this payment, and they can verify your banking or contact information in case an error has occurred.
How do I know if I qualify for this credit?
There are certain criteria you have to meet to receive this money
- The first is to reside in Canada (you must be considered a Canadian resident for tax purposes in the month of payment)
- You must be at least 19 years old in the month of payment
- Special conditions for minors under 19 years old (in this case you qualify if you are married, in a de facto relationship, or if you are a parent living with your child)
In this payment, the amount you will receive will depend on your family situation and the income reported in the previous tax return.
How much can you receive with the GST payment?
As we just told you, payments vary depending on income and number of people in the household, but the maximum amounts (for the period from July 2024 to June 2025) will be as follows:
- Individual up to $519
- Common-law couple up to $680
- For children under 19 years of age, an additional $179
How will your payment be calculated?
The CRA will process your annual income tax return for 2023, and if you qualify, you will receive a notice outlining your eligibility and the exact amount you will receive per quarter.
If you need a quick estimate, use the CRA’s family and child benefit calculator, which is available by clicking here.
How can I request payment?
Canadian residents will only need to file their 2023 tax return; however, newcomers to Canada, such as international students or work permit holders, may need to file a separate application.
Canadian residents will simply need to file their 2023 tax return but for newcomers to Canada, for example an international student or a work permit holder, you may need to file a separate application.
- First if you are not a parent you will need to file form RC-151
- If you are a parent form RC66 and form RC66SCH.
What do I do if my payment is lost?
In January you have until the 15th to wait for the deposit, but if this does not happen, you can check your MiCRA account to confirm that it is still legible, make sure your banking information is up to date or contact CRA customer service at the following number for further assistance (1-800-387-1193)
