Amid ongoing economic challenges, Canada is offering additional financial support to help residents cope with inflation, especially during the holiday season. One such initiative is the extra Goods and Services Tax (GST) payment, which will be issued in December 2024. This payment is a one-time boost to assist low- and modest-income households, adding to the regular GST/HST credits that Canadians typically receive.
In this guide, we’ll explain the details of the December 2024 extra GST payment, including who qualifies, how much it will be, and when you can expect to receive it.
What Is the Extra GST Payment in December 2024?
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit helps lower-income Canadians offset the costs of these taxes. Normally, this credit is provided quarterly. However, in 2024, the Canadian government is adding an extra payment to provide immediate financial relief to households struggling with inflation and the rising cost of living, particularly as the year ends.
In December 2024, eligible Canadians will receive an additional one-time payment alongside their regular quarterly GST/HST credits. This extra payment is designed to ease financial pressures just before the holidays.
Who Is Eligible for the Extra GST Payment?
Eligibility for the extra GST payment depends on several factors, including income, family size, and your tax filings.
Here are the key eligibility criteria:
- Residency: You must be a resident of Canada for tax purposes.
- Tax Filing: You must have filed your 2023 tax return. Even if you owe no taxes, the government uses this information to determine eligibility and calculate the payment.
- Income: The GST/HST credit is intended for low- and modest-income Canadians. If your income exceeds certain limits, you might not qualify or may receive a smaller payment.
- Family Size: Families with children are typically eligible for a larger payment, as more dependents lead to a higher credit.
- Age: You must be at least 19 years old, or living with a partner, or have children to qualify.
If you meet these conditions, you will automatically receive the extra GST payment, so there’s no need for a separate application.
How Much Will You Receive?
The amount of the extra GST payment varies based on your income and family size. The payment is a one-time, additional sum on top of your regular quarterly GST/HST credit.
Here’s an approximate breakdown:
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- Single individuals with no children: Up to $225.
- Couples or families with children: Families could receive up to $450 or more, depending on their income.
Example Scenarios:
- A single person earning $30,000 could receive around $225.
- A married couple with two children and a combined income of $50,000 might receive upwards of $450.
Note that these are estimated figures. The final payment amount will depend on your specific financial situation.
When Will the Extra GST Payment Be Sent?
The extra GST payment will be issued in mid-December 2024. It will be part of the regular quarterly payment schedule.
- Direct Deposit: If you have direct deposit set up with the Canada Revenue Agency (CRA), the payment will be deposited into your account within a few days of the distribution date.
- Cheque: If you don’t have direct deposit, a cheque will be mailed to the address on file with the CRA.
Since the payment is automatically issued to eligible individuals, no separate application is required. However, it’s important to file your 2023 tax return to ensure that you are eligible and avoid any delays.
How to Ensure You Receive the Extra GST Payment
To make sure you receive the extra GST payment, follow these steps:
- File your 2023 tax return by the deadline. Filing is crucial, even if you don’t owe taxes, to ensure your eligibility.
- Set up direct deposit with the CRA to receive your payment faster and more reliably.
- Keep your information up to date with the CRA, including your address and bank account details, to avoid any issues.
Potential Issues and How to Address Them
While the extra GST payment aims to help Canadians, some individuals may face challenges or delays. Here are a few common issues and how to resolve them:
- Late or missed payments: If you were expecting the payment and didn’t receive it, check your CRA account or contact them for assistance.
- Incorrect amounts: If you receive an amount lower than expected, it could be due to incorrect information on your tax return. Contact the CRA to have any errors corrected.
- Direct deposit issues: If your direct deposit payment hasn’t been received, verify your bank account details with the CRA and ensure there are no issues on your bank’s end.
GST Credit vs. Other Financial Aid Programs
The GST/HST credit is just one form of assistance available to Canadians. Other financial aid programs may provide additional relief, including:
- Canada Child Benefit (CCB): This program offers tax-free monthly payments to families with children.
- Employment Insurance (EI): If you are unemployed, you may be eligible for Employment Insurance benefits.
- Inflation Relief Measures: Other temporary relief initiatives, such as direct payments or rebates, are also in place to support those facing economic hardship.
Long-Term Benefits of the GST/HST Credit
While the extra GST payment in December provides short-term relief, the GST/HST credit is a long-term benefit. Regular payments are issued quarterly and can help offset the cost of living year-round.
Frequently Asked Questions (FAQs)
- Do I need to apply for the extra GST payment? No, as long as you qualify for the GST/HST credit, the extra payment will be issued automatically. Ensure your 2023 tax return is filed correctly.
- Can I still get the extra payment if I didn’t file taxes in 2023? Unfortunately, you must file your 2023 taxes to qualify. Even if you don’t owe taxes, filing is essential for determining eligibility.
- How do I check my eligibility? You can check your eligibility by logging into your CRA My Account or by visiting the CRA website, where you can also use an online calculator to estimate your eligibility.
- When will I receive my extra GST payment? Payments will be issued in mid-December. If you have direct deposit set up, expect it within a few days; otherwise, you’ll receive a cheque in the mail.
- Is the extra GST payment taxable? No, the extra GST payment is not taxable. It is designed as a non-taxable benefit to support low-income Canadians with the rising cost of living.