Income Tax and the GST Credit

Question #1:

Why is there a question about the GST credit on my income tax return?

Answer #1:

Because it's convenient. The government needs to see your net income to decide if you will get the GST credit or not, and your income tax return is where you figure out what your net income is.

Question #2:

Does everyone get the GST credit?

Answer #2:

No. Only people with net incomes that are low or modest get it.

Question #3:

What is a low or modest net income?

Answer #3:

It depends. For a single person with no children, a low or modest net income is anything under $33,000. For a family with four children, a low or modest net income is anything under $43,000.

Question #4:

Does everyone get the same amount of GST Credit?

Answer #4:

No. Some people get as little as $11.00 a year. The most anyone can get is $850.00 a year.

Question #5:

How does the government decide how much GST credit to give?

Answer #5:

They look at three things. First, they look at your net income, as you wrote it on your income tax return. Second, they look to see if you have a spouse, and, if you do, they look at that person's net income too. Third and last, they look at how many children you have. The lower your net income and the more children you have, the more GST credit you will get.

Question #6:

When does the government give out the GST credit?

Answer #6:

They don't give you the whole GST credit at the same time. They give it to you in four chunks. Usually, you receive the first chunk in July. Then you receive the other three chunks in October, January and April. You might get a cheque in the mail, or you might ask them to deposit the money directly into your bank account. (If someone's GST credit is less than $100 for the whole year, then they will get it all in one cheque.)

Question #7:

How do I find out if I can get the GST credit?

Answer #7:

When you fill out the front page of your tax return, answer 'Yes' to the question 'Are you applying for the GST credit?' The government will send you a notice to tell you if you will get the GST credit, and how much it will be.