GST/HST credit – Always file a tax return

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Why you should file a Tax Return even if you have NO Income

With the tax season now here, it is important to remind everyone to file a tax return.

Even if you have no income, it is essential to file so that you don’t miss out on credits that could be available to you such as the GST credit and more discussed here.

You could be entitled to some credits, but will not qualify for them if you don’t file a return.

GST/HST CREDIT

Individuals over the age of 19 years could be entitled to the GST/HST credit. To qualify you need to file an income tax return and your income has to be less than $44,969 if single or $47,629 if married.

You may also receive credit for each of your children if your child is dependent on you or your spouse for support, if your child is under the age of 19, if they have never been a parent of a child that they lived with, and if they live with you.

Each eligible parent in a shared custody situation may get half of the GST/HST credit for that child. Your child is automatically enrolled for the GST/HST credit when your child is born and you have registered their birth and given consent on the provincial birth registration or if you have applied for the Canada Child Benefit.

When GST/HST credit payments are received?


The base year is the year of the income tax and benefit return. The benefit year when the credits are paid, are the 12 months from July 1 of the following year.

Benefit year (payments)    
Tax YearJulyOctoberJanauryApril
20172018201820192019
20162017201720182018

IF SINGLE THE CREDIT IS CALCULATED AS FOLLOWS:
Basic credit $276 + additional amount of $147 or 2% of income over $9,073 whichever is less.
The total is reduced if income is greater than $36,429. The reduction is 5% of income over the $36,429.

Below are examples at 5 different income amount:

IF SINGLE     
Basic credit for self$ 280$ 280$ 280$ 280$ 280
Additional credit:
INCOME $0$10,000$25,000$40,000$44,969
(9,073)
-----------
(9,073)
-----------
(9,073)
-----------
(9,073)
-----------
(9,073)
-----------
Amount over $9,073 ($9,073)
-----------
$ 927
-----------
$15,927
-----------
$30,927
-----------
$35,896
-----------
PLUS: Lessor: of $147 or 2% of Amount over $9,073 0
18
147 147 147
SUBTOTAL$ 280$ 299$ 427$ 427$ 427
Credit reduction if income over $36,429
INCOME 0$10,000$25 000$40 000$44 969
0
-----------
(36,429)
-----------
(36,429)
-----------
(36,429)
-----------
(36,429)
-----------
If negative = $0 0 0 0 3,571 8,540
5% of income over $36,429 0
-----------
0
-----------
0
-----------
( 179)
-----------
( 427)
-----------
TOTAL GST CREDIT$ 280
=======
$ 299
=======
$ 427
=======
$ 249
=======
$ 0
=======

IF MARRIED THE CREDIT IS CALCULATED AS FOLLOWS:

Basic credit $276 + additional $276 for spouse.
The total is reduced if income is greater than $36,429. The reduction is 5% of income over the $36,429.

Examples are the 5 same different income amounts as above:

IF MARRIED     
Basic credit for self$ 280$ 280$ 280$ 280$ 280
Basic credit for spouse 280
-----------
280
-----------
280
-----------
280
-----------
280
-----------
SUBTOTAL$ 560$ 560$ 560$ 560$ 560
Credit reduction if income over $36,429
INCOME $ 0$10,000$25,000$40,000$44,969
0
-----------
(36,429)
-----------
(36,429)
-----------
(36,429)
-----------
(36,429)
-----------
If negative = $0 0 0 0 3,571 8,540
5% of income over $36,4290
-----------
0
-----------
0
-----------
(179)
-----------
(427)
-----------
TOTAL GST CREDIT$ 280
=======
$ 560
=======
$ 560
=======
$ 381
=======
$ 133
=======

If you have children:
Add $145 for each child.

If you did not file your tax return in past years don’t worry. You have up to three years to ask for retroactive payment if you did not file in prior years.

TRILLIUM BENEFIT CHEQUES

There are three parts of the Ontario Trillium Credit:

1 – Sales tax credit


$296 for self + $296 for spouse. For single’s the credit is reduced by 4% for income over $23,156 and for married couples the credit is reduced by 4% for income over $28,944, until zero.

2 – Energy and property tax credit


Up to $1,043* if you are a non-senior – for rent or property tax paid
Up to $1,187* if you are a senior

Amount gets reduced by 2% for income over:
$23,156 for individuals under the age of 64
$28,944 for single seniors
$28,944 for families, including single parents, and
$34,733 for senior couples

3 – Northern Ontario Credit


Northern Ontario refers to the districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay or Timiskaming.

FOR SENIORS

There is the Ontario Senior Homeowners’ Property Tax Grant
If you are 64 years of age or older, resident in Ontario, and owned and occupied your principal residence you can get up to $500 each year.

Singles qualify if income is less than $35,000. If you income is over $50,000 you don’t qualify.
Married individuals quality income is less than $45,000. If your income is over $60,000 you don’t qualify.
For incomes between $35,000/$45,000 and $50,000/$60,000 the amount is reduced by 3.33% of income over the minimum.

OAS & GIS & SOCIAL SUPPORT

If you are receiving any form of government payments, it is IMPORTANT to file your income return regardless of your situation to avoid having the payments stopped.

MORE INFO HERE

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