HST Rebate Cheques
HST Rebate Cheques
Since the implementation of the Harmonized Sales Tax in Ontario and British Columbia, residents, when filing taxes on their personal tax software, have begun to receive HST credit and transition cheques from the government as a way to adjust to the new taxation system. As with the HST system, there are many questions surrounding the cheques and who is eligible, when to expect the payments and how to go about applying to receive a cheque.
Ontario Sales Tax Transition Benefit (OSTTB)
First and foremost, in order to receive a HST transition cheque or OSTTB you must file your income taxes for 2009 by April 30, 2011 and file your 2010 returns by April 30, 2012. Based on your return and income earned, your cheque amount will be determined and issued. HST cheques will be issued to singles with an income lower than $82,000 (net income) or couples/families with an income less than $166,000. You do not have to fill out any separate forms in order to receive cheques as Canada Revenue Agency works in conjunction with the HST rebate program. GST rebates for lower income residents and HST cheques are issued together.
For single Ontario residents within the income range listed above, you can expect to receive three cheques of up to $100 per cheque for a total maximum benefit amount of $300. Couples and families can expect HST cheques of up to $330 per cheque ($335 for the second and third cheques) for a total maximum benefit amount of $1000.
Dates for the cheques for Ontario residents are as follows: June 2010, December 2010 and June 2011. In the event that you file your income taxes late, HST benefit cheques will be delayed for approximately eight weeks for processing. To ensure that you receive the HST cheque you deserve, be sure to file your income taxes on time.
Further requirements to be an eligible recipient for the June 2010 and December 2010 payment:
- must be 18 years or older
- are married or common-law or
- live with one or more dependants under the age of 18
You must also have been a resident of Canada on December 31, 2009 and of Ontario on May 31, 2010 and November 30, 2010.
In order to receive the June 2011 benefit payment, the recipients must:
- be a resident of Canada on December 31, 2010 and file a 2010 income tax return by April 30, 2012 or if not resident in Canada on December 31, 2010, provide a statement of 2010 world income to CRA, by April 30, 2012; and
- be a resident of Ontario on May 31, 2011.
*Note that the OSTTB is a temporary payment program designed to help residents adjust to the HST implementation. No payments will be issued after April 30, 2013.
B.C. HST Credit Cheques
For BC residents, the qualifications and requirements are slightly different than for residents in Ontario. In order to receive a BC HST cheque, residents are required to file income taxes with Canada Revenue Agency as well as fill out a benefit return with your taxes by checking ‘Yes’ in the GST/HST credit application area.
For individuals applying for the credit cheques, you can expect up to $230 with a maximum annual income of $20,000. Families can expect $230 per person with a maximum annual income of $25,000. Partial credits are also available based on income and number of family members per household at a reduction rate of 4% of your net income over the allowable threshold.
HST credit cheques are issued quarterly and can be expected in the months of January, April, July and October.
Additional requirements to ensure you will receive the HST Credit (HSTC) include:
- you must be 19 years of age or older
- you are married or live common-law or
- you live with one or more dependants under the age of 18
Be sure to check out related tax websites for further information and to ensure you determine your eligibility for HST cheques.