Things you should know about HST rebate
Owning a house is something everybody wants, but this does not come without any strings attached. Purchasing the property is definitely a great investment, maybe the most important of your life, but maintaining the house in good conditions is also very costly. You will have to pay for maintenance services, domestic expenses or even renovation and repairs, so you should consider additional incomes, to cope with all these. Fortunately, the Canadian state has multiple programs and systems for its citizens: for instance, those whose income is bigger are also obliged to pay bigger taxes. Besides this, as a Canadian, you can use some special support methods that will help you lower your costs. One of these is the HST rebate, a credit aiming to diminish tax expenses for those who earn little money. This may be a renovation or a new housing rebate, depending on the needs of each candidate.
What is the HST credit?
The HST credit is part of Canada’s progressive tax system, according to which the tax payment should be directly proportional to each citizen’s income. The government issues this measure in order to support those who have modest means and reimburse part of the federal portion taxes for home owners. Any individual who can make proof of the fact that they have a low salary can apply for this credit, which is paid 4 times a year (in July, October, January and April). The amount of credit varies on the situation and conditions fulfilled by each candidate, and some of the variables are the income, the number of family members or dependent children.
Is everyone eligible for the HST credit?
There are certain criteria the applicants must fulfil in order to be eligible, but the basic one is to be a Canadian resident, officially, as defined by the Canada Revenue Agency. Besides this, if you want to get the credit, then you must meet one more criterion, from the following three: you have over 19 years old, you have an official spouse or you have at least one children to whom you live. If you were not born in Canada and you just received your residency documents, then you can still apply for a HST credit, using the additional Credit Application for Individuals Who Become Residents of Canada.
Which is the most important criterion one must meet?
You must know that meeting the criteria mentioned above is not always all it takes to receive the credit approval. The decisive factor is actually your family’s income, depending to which the amount of money will also be established. In case you are asking for a HST credit, but your income is not low enough, Canada Revenue Agency will let you know that you do not fulfil the most important criterion. Those who apply in spite of the fact that they have a high income are not legally punished anyhow. In addition to this, if your salary or the eligibility condition change, you can also re-apply the next year. The same goes for those who have already received the HST credit – they can re-qualify.