The Canada Revenue Agency (CRA) has extended its income tax filing deadline from April to September last year due to the COVID-19 pandemic.But CRA Clarified I have to do that this year. Be sure to pay your tax on time this year, even if your tax bill is zero. why? This is because the CRA offers a refundable tax credit to those who file income tax returns. One such credit is a Goods and Services Tax / Harmonized Sales Tax (GST / HST) refund.
The CRA believes that GST accounts for the majority of the income of low- and middle-income earners compared to high-income earners. Therefore, we will refund the portion you paid to purchase the taxable goods and services.
When will I be eligible for a GST refund?
When you file your income tax return, CRA will automatically consider a GST refund. You must be at least 19 years old and resident in Canada at the beginning and the previous month of the month when the agency refunds the amount. The GST refund amount depends on the following conditions:
- You have or had a spouse or concubinage partner.
- You are a parent, you are a parent, and you live or live with your child.
If you share custody of your child, you are eligible to receive half of your child’s GST refund.
How much can I receive with a GST refund from 2021 to 22?
To receive a GST refund, you must complete Form RC66 if you have children and Form RC151 if you do not have children. The CRA will calculate the GST credit amount based on the 2020 tax return and will provide the benefits between July 2021 and June 2022.
If your family’s total adjusted net income for 2020 is less than $ 38,892
- $ 456 for singles.
- $ 598 if you are married or have a common-law relationship.And
- $ 157 per child under 19 years old.
If the adjusted family’s net income exceeds $ 38,892, the GST refund will begin to be phased out.
CRA will credit your account with a GST refund on the 5th day of the quarter (January 5, April 5, July 5, October 5). If you turn 19 this year, the agency will give you the first GST refund on the payment date. It comes after your 19th birthday.
How to maximize GST refunds
Investing at an early age can be very helpful and can help you retire early. Make the most of your tax credits and put your GST refund into your Tax Exempt Savings Account (TFSA). You can invest up to $ 6,000 in TFSA to earn lifetime tax-free income. You can also withdraw dividend income and capital gains from this account tax-free.
Embridge (TSX: ENB)(NYSE: ENB) A good stock to start investing in TFSA.Enbridge, a leading oil and gas pipeline operator Dividend aristocrat.. We have been increasing dividends for over 25 years. We paid dividends even during a pandemic where all other companies stopped or reduced dividends. The company’s robust pipeline infrastructure, built over the last +60 years, has helped to earn this reputation.
Enbridge transports about 20% of the natural gas consumed in the United States and about 25% of the crude oil produced in North America. This makes it the third largest natural gas utility in North America. The company’s dividend yield is 7.3%.
Investing a $ 451 GST refund in Enbridge will give you an annual dividend of $ 33. The company has the potential to increase dividends per share with a compound annual growth rate (CAGR) of 8% over the next 10 years. This will increase annual dividend income to $ 71. With an investment of $ 592, the annual dividend in 10 years will skyrocket to $ 93. This indicates that pools can be created over time with little savings.
Submit your return and start investing at an early age.
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Stupid contributor Puja Tayal There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Enbridge.
CRA: Submit an income tax return in 2021-22 and get a GST refund of $ 450 or more
https://www.fool.ca/2021/02/02/cra-file-income-tax-returns-and-get-over-450-in-a-gst-refund-in-2021-22/ CRA: Submit an income tax return in 2021-22 and get a GST refund of $ 450 or more