GST/HST Credit Guide for Parents in 2021

These days, managing money and budgeting may be more difficult than ever before. In order to help offset these stresses, the Canadian government has a few programs in place for parents. One of the best of these programs is the GST/HST Credit. Navigating tax code is complicated, websites like https://goodservicetax.com/gst-hst/ can be helpful in outlining the details. 

What is the GST/HST Credit?

The Goods & Services Tax (GST) Credit and Harmonized Sales Tax (HST) Credit are tax-free payments four times a year given to families and individuals who require help with offsetting GST/HST amounts throughout the year. Most, if not all, items you will purchase throughout the year have a certain amount of GST/HST attached to them, which vary by product and province.

Do I qualify?

Eligibility for these credits depends on you being a Canadian resident the month before and during the month you plan on applying. You also need to fit one of the following criteria:

• You must be at least 19 years old

• You must have (or had) a spouse or common-partner

• You must be a parent (or were a parent) and live (or lived) with your child; that child must be living with you at the beginning of the month the payment is issued

You may forfeit your ability to qualify following any criminal charges/time in jail during the month you wish to get credit for. Denial of qualification can be appealed within 90 days of rejection.

Keep in mind that the amount you qualify for will depend on your annual income; having a tax return for the previous year on file is critical.

How do I apply?

You can apply at any Service Canada office, or by mail if none are available nearby. You must be able to provide your Social Insurance Number (SIN) to complete the application. Click here if you've lost your SIN.

When will it arrive?

The four payment dates for last year's tax return are:

• July 3, 2020

• October 5, 2020

• January 5, 2021

• April 1, 2021

This cycle repeats every year, so don't fret if you've missed the deadline. If you find that you've been over/underpaid, contact the CRA immediately. You will find potential payment calculation information here.

How Can it Help?

Although there are some items that are GST/HST exempt, most of what you purchase has a form of sales tax that is added at the end of the transaction. The quarterly payments that you may be eligible for essentially diminish that additional amount to zero. This is extra money in your pocket every few months that can be used for whatever you need. This includes but is not limited to:

• Groceries

• Clothing

• School supplies

• Shoes

If you are looking for additional assistance, you can use this quick guide to child and family benefits that are available and whether or not you qualify. Individual provinces and territories offer more specific credits depending on your situation; and the federal government offers the Canada Child Benefit (CCB), which is a tax-free monthly payment that assists with the cost of raising minors.

Whether you're a single parent struggling to get by, or could really just use the extra money for daily expenses during the pandemic, GST/HST Credits are here for you. No matter how dire things may feel, there are programs and tax breaks out there aimed at relieving some of that pressure. Stay strong, and good luck!