If you are a Canadian and want to reduce the financial stress on a low income and are also affected by inflation and interest rates, the Government of Canada has implemented a plan in which eligible Canadians will receive double GST Tax Credit over an additional six-month period. The Goods and Services Tax Credit helps offset the financial impact of GST for low or modest-income individuals and families.
The GST Credit is indexed to inflation based on the Consumer Price Index. CRA (Canada Revenue Agency) regulates all types of tax collection in Canada and also provides benefits on tax returns for its citizens. So if you are here then want to know from the following sections what is Double GST Credit and whether it will come in future.
Double GST Tax Credit
GST credit is given in equal installments in April, July, October and January, with the benefit year starting in July. The total annual GST Tax Credit depends on family income and size. Eligible people can avail double GST Tax Credit in the period July 2022 to June 2023;
- For Single Without Children: $467
- For Married or Common Law Partner: $612
- For Single Parents: $612
- For Each Child Under the Age of 19: $161
All the above figures are set by the Government of Canada and are provided to all those who are in need. According to Statistics Canada, the GST Tax Credit increased by 2.4% during the July 2022 to June 2023 benefit year. The increase in the GST Tax Credit is due to changes in the inflation rate and will not have any impact on any Canadians who are receiving the current rate. It is also mentioned that the GST Tax Credit is targeted at low or modest-income individuals. If you have filed your income tax return then this is also considered while making GST Tax Credit for you.
The government has also prescribed a net income level under which you can avail of GST Tax Credit from the department. GST Tax Credit is available to those who need it most. If your household net income is less than $39826 in 2021 you will receive the full credit amount and if your household net income exceeds the net income level the credit will be divided according to your income growth. It entirely depends on your net income and then the GST Tax Credit will be determined for you accordingly. Amid rising inflation and financial crisis, the government has decided to double the GST credit for six months. If you want to know more about Double GST Tax Credit then you can go through the following sections carefully.
Double GST Tax Credit Canada – Overview
|Double GST Tax Credit
|July 2022 to June 2023
|Beneficiary of Double GST Tax Credit
|Resident of Canada
|Must File Income tax Return
|Type of Credit
|Goods and Service Tax
|Canada Revenue Agency (CRA)
What Do You Mean by Double the GST Tax Credit?
This is a type of payment that is made on your net annual income and what type of GST Tax you have paid. This is a lump sum payment made to all eligible recipients at the end of the benefit year on their existing GST Tax Credit system. A one-time payment will be given to eligible people before the end of the year. If you filed your 2021 income tax return the GST Tax Credit will be created for you, even if you have no income in that tax year. This is an additional payment given to all taxpayers in Canada.
Doubling the Goods and Services Tax Credit for six months means the government wants to support all those individuals or households who have been affected by inflation and interest rate changes. The government has proposed a plan to provide the Doubt GST Tax Credit to all eligible Canadians for benefit years from July 2022 to June 2023. GST Tax Credit during this period has increased by 2.4 per cent compared to the previous profit year from July. 2021 to June 2022. Now the government wants to help all those people who are in need. This means you will receive double GST Tax Credit payments from the government as I have detailed below.
What is the Benefit of Doubling the GST Tax Credit Amount?
The Government of Canada has estimated that approximately 11 million Canadians will benefit from this double GST Tax Credit which is provided to approximately 11 million single people and approximately 2 million couples. This is additional support for all those who were earlier affected by inflation and are now facing a financial crisis. If you want to know how much I will get from the double GST tax credit, you can check the details given below.
- If you are a single mother with one child and your net annual income is $30,000 you will receive $386.50 for the period July to December 2022 and an additional $386.50 for the period January to June 2023. So here you are getting additional GST tax credit and the total amount you will receive for this profit year through GST credit is approximately $1160.
- If you are a single senior with a net income of $20,000, you will receive a GST tax credit of $233.50 for the period July to December 2022. Additionally, you will receive $233.50 for the period January to June 2023. A credit of $233.50 will also be available along with a temporary double GST tax credit for six months. In total, a single senior will now receive approximately a $701 GST credit for the benefit year.
- If you are a couple with two children with a net income of $35,000, you will receive a GST tax credit of $467 for the period July to December 2022 and an additional $467 for the period January to June 2023. Temporarily doubling the GST tax credit amount for six months will give you an extra $467. For this, you will receive a total of $1401 for this benefit year through GST credit.
How to Apply for Double GST Tax Credit?
There is no need for an individual to apply for a GST Tax Credit. Because GST credit will be determined as per your 2021 income tax return filing. GST Tax Credit will be calculated as per your filed tax return and net annual income of the family.
Now the government plans to double the GST tax credit amount for eligible singles and couples who are facing financial problems due to inflation and interest rate hikes. If your eligibility is for this amount then you will automatically receive Double GST Tax Credit from the government.