It’s one little box on the first page of your T-1 income tax return.
Don’t forget to tick it off.
The little box allows you to apply for the GST/HST credit. Of course, in Alberta, we don’t have provincial or harmonized sales tax so only the GST will apply.
The GST credit is a little financial boost that the government sends out four times a year. It’s a tax-free payment that helps individuals and families with low and modest incomes offset all or part of the taxes they pay on everyday products.
To be eligible for the GST credit, you must fit into one of the following categories:
- 19 years of age or older
- A resident in Canada for income-tax purposes
- Have, or previously had, a spouse or common-law partner, or be (or previously was) a parent and live (or previously lived) with your child
If you fall into the third category, don’t forget to indicate your marital status on your income-tax return.
The amount you receive is calculated based on your net income (Line 326 of your T-1) and the net income of your spouse or common-law partner, if applicable. From that total, the government subtracts any amount you or your spouse/common-law partner report for the Universal Child Care Benefit and the Registered Disability Savings as well as any amounts repaid from those credits. The number of dependent children registered for the Child Tax Benefit or GST/HST credit also affects the calculation your benefits.
You aren’t left out if you’re a new resident of Canada. You can apply for the credit any time in the year you become a Canadian resident by completing Form RC151, the GST/HST Credit Application for Individuals Who Become Residents of Canada.
You should note that you have to apply for the credit every year, so never forget that one little box!
Can you help with my taxes?
We sure can. Contact one of our tax specialists and we can help you wade through the tax benefits and credits available to Canadians.
Fill out our contact form or give A1 Accounting a call at 403-226-8297.