COVID-19 - Increase in the GST credit and Canada child benefit for low- and modest-income people

Program(s) affected: T1 Document created: 03 30, 2020 Tax year(s): 2019 Document last modified: Version(s): 23.01, 23.02, 23.08, 23.10, 23.11, 23.12, 23.20 Problem status: N/A

The federal government has proposed increases in the GST and Canada child benefit to help Canadians struggling with the COVID-19 outbreak. Will these increases be included in the estimates calculated by the software when filing the 2019 income tax return?

• Goods and Services Tax (GST) Credit: A one-time special payment will be made by early May 2020. The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples. This will double the maximum annual GST credit payment amounts for the 2019-20 benefit year.
• Canada Child Benefit (CCB): For families with children who may need additional support, the government is proposing to increase the maximum annual CCB payment amounts, only during the 2019-2020 benefit year, by $300 per child. The overall increase for families receiving CCB will be approximately $550 on average; these families will receive an extra $300 per child as part of their May payment.

Note that these two measures apply only to the 2019-2020 benefit year which extends from July 2019 to June 2020. The GST credit and the CCB that are paid during this period are calculated based on the information from the 2018 income tax return.

Since these measures do not apply to the 2020-2021 benefit year, they will not be included in our estimates of the GST credit and the CCB for the period from July 2020 to June 2021 which are calculated with the 2019 income tax return.

For more information on the measures announced by the federal government, please consult the following link: www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html