The Canada Revenue Agency (CRA) is set to roll out an Extra GST Payment in December 2024, offering vital financial support to eligible Canadian taxpayers.
This supplemental payment is part of the government’s effort to assist low- and moderate-income families in tackling rising living costs and inflation.
Here’s everything you need to know about the amounts, dates, and eligibility criteria for this much-needed tax-free payment.
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What Is the Extra GST Payment?
The Extra GST Payment is a one-time financial aid initiative introduced by the Canadian government to help individuals and families cope with the increasing cost of living.
Tied to the Goods and Services Tax (GST) credit system, this payment is designed to offset the financial strain caused by inflation and rising expenses.
- Objective: To provide relief to households impacted by inflation.
- Payment Schedule: Distributed in December 2024, based on your most recent tax filing.
- Tax-Free: This payment is not considered taxable income.
The CRA has structured this payment to benefit families with lower adjusted net incomes, ensuring that those who need support the most receive it.
Extra GST Payment Amount 2024
The payment amount varies based on a taxpayer’s adjusted net income and the number of dependents. Below are the details for eligible recipients:
| Recipient Type | Base Amount | Additional Amount (Per Dependent) | Reduction Threshold | Reduction Rate |
|---|---|---|---|---|
| Single Individuals | $496 | $171 | $35,000 annual net income | 2% of income above threshold |
| Married or Common-Law Couples | $650 | $171 per child | $35,000 annual net income | 2% of income above threshold |
Example:
- A single parent with two children and a net income of $30,000 would receive:
$496 (base) + $171 x 2 (dependents) = $838 total.
These payments are calculated annually and distributed quarterly, with December 2024 being a special issuance for the extra GST credit.
Eligibility for the Extra GST Payment
To qualify for the Extra GST Payment, individuals must meet specific criteria set by the CRA:
- Tax Return Filing:
- You must have filed your 2023 income tax return before the due date.
- Adjusted Net Income:
- Eligibility is based on your adjusted family net income. This includes income from employment, minus deductions such as childcare and disability savings plan contributions.
- Residency Status:
- You must be a Canadian resident at the start of the payment month.
- Income Threshold:
- Payments begin to phase out for households with net incomes exceeding $35,000.
- Family Size:
- Additional amounts are provided for dependents under the age of 18.
How Is GST Calculated in 2024?
The Goods and Services Tax (GST) is tied to the Consumer Price Index (CPI) and reflects inflation adjustments.
As of January 2024, the federal government has increased the GST by 9%, prompting the need for supplemental payments like the Extra GST to alleviate additional financial burdens on Canadians.
Payment Schedule
The CRA ensures timely distribution of GST credits to eligible recipients. Here’s an outline of the upcoming payment schedule:
| Payment Month | Type of Payment | Eligibility Based On |
|---|---|---|
| July 2024 | Regular Quarterly GST Payment | 2023 Income Tax Return |
| December 2024 | Extra GST Payment | 2023 Income Tax Return |
| January 2025 | Regular Quarterly GST Payment | 2024 Income Tax Return |
How to Check Your Eligibility
You can determine your eligibility for the Extra GST Payment by reviewing the following:
- CRA Online Account:
- Log in to your CRA My Account to see your GST credit status.
- Notice of Assessment:
- Refer to your 2023 Notice of Assessment for details on your adjusted family net income.
- Eligibility Letter:
- The CRA will notify eligible individuals through mail or their online account.
- Contact CRA:
- Call the CRA’s customer service line if you have questions about your eligibility or payment.
How to Apply
There’s no separate application required for the Extra GST Payment. Filing your 2023 income tax return on time automatically enrolls you for this payment.
Benefits of the Extra GST Payment
- Supports Low-Income Families: Helps individuals and families meet essential expenses.
- Inflation Relief: Mitigates the financial impact of rising prices.
- Simplified Process: Automatic enrollment ensures seamless distribution.
The Extra GST Payment in December 2024a GST Payment?
The amount depends on your adjusted net income and family size. Single individuals may receive $496, while married couples could get $650, with an additional $171 per child.
Do I Need to Apply for the Extra GST Payment?
No, the CRA automatically determines eligibility based on your most recent tax filing.
When Will the Extra GST Payment Be Issued?
The payment will be distributed in December 2024.
