ARCHIVED - Step 2 - Goods and services tax (GST) credit

To apply for, or to continue to receive, a GST credit, you have to complete Step 2 on your 1995 tax return. However, before doing so, be sure to read all of the information in this section.

If you apply, we will let you know in July 1996 the amount to which you are entitled, and how we calculated your credit. If you qualify, we will send you quarterly payments in July and October 1996, and January and April 1997.

Who can apply

You can apply for the GST credit if, at the end of 1995, you were a resident of Canada and you:

• were 19 years of age or older;
• had a spouse; or
• were a parent.

Note

If you have a spouse, only one of you can apply for the credit. No matter which one of you applies, the credit will be the same.

Who cannot apply

You cannot apply for the GST credit if, at the end of 1995, you:

• were in a prison or a similar institution, and had been there for more than six months during 1995; or
• did not have to pay tax in Canada because you were an officer or servant of another country, such as a diplomat, or a family member or an employee of that diplomat.

Number of children

You can claim a GST credit for each of your children who was under 19 years of age at the end of 1995, if the child:

• did not have a spouse;
• was not a parent; and
• either lived with you at the end of 1995, or was claimed as a dependant (line 305 or 306) only by you or your spouse.

Only one person can claim a GST credit for a particular child.

Net income of spouse

Your spouse's net income is the amount from line 236 of your spouse's return, or the amount that would appear on this line if your spouse completed a return.

Income limit

In the chart that follows, look up the number of children you have. If your net family income is less than the income limit shown across from the number of your children, you should apply for the credit. Your net family income is the total of your net income and, if applicable, your spouse's net income.

Note

These income limits are only a guideline to help you decide if you should apply. If you apply but are not entitled to a credit because your net family income is too high, we will let you know in July 1996.

Calculating your GST credit

We will calculate your GST credit using the information on your return. Therefore, make sure you complete all the areas of the return that apply to you.

If you would like to do your own calculation, you can use the information that follows:

Basic credit $199

Credit for your spouse $199

Credit for a child under 19 for whom you can claim an equivalent-to-spouse amount $199

Credit for each child under 19 for whom you did not claim an equivalent-to-spouse amount $105

If you do not have a spouse and your net income is more than $6,456, you may be entitled to an additional credit. The additional credit equals $105 or 2% of your net income that is more than $6,456, whichever is less.

If your net family income is more than $25,921, reduce your total credit by 5% of your net family income that is more than this amount.