Yahoo Finance CRA: Are You Eligible for the $496 GST/HST Refund in 2024?
Written by Aditya Raghunath at The Motley Fool Canada
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a quarterly non-taxable amount paid four times a year to help low- and moderate-income Canadian residents and households offset the GST and HST they pay.
Are you eligible for the GST/HST tax credit in 2024?
According to the Canada Revenue Agency, you are eligible for the GST/HST tax credit if you are a Canadian resident over the age of 19. Moreover, a single person earning below $52,255 can apply for the GST/HST refund. For a single parent with two children, the minimum income threshold increases to $62,175, while for a married couple with three children, the family income should be lower than $65,595.
An individual eligible for the GST/HST tax credit will be paid $496, while for couples, the amount rises to $650. Moreover, for every child below the age of 19 you will receive an additional $171.
It’s essential to reinvest these tax credits
While the rising cost of living and higher inflation have made it difficult for households to increase their savings, Canadians should consider investing a portion of the proceeds received from tax credits, such as the GST/HST.
For example, you can invest in low-cost index funds that track the S&P 500. In the last six decades, the flagship index has returned more than 10% annually, allowing long-term investors to build generational wealth.
So, even if households can invest $500 every month, these savings can snowball significantly over time. For instance, a $500 monthly investment would balloon to $1.91 million over 25 years, given annual returns of 10%.
Additionally, investing in the S&P 500 index provides you exposure to 500 of the largest companies in the world, which offers diversification and lowers overall risk.
Investors can consider investing in quality growth stocks
While index investing is arguably the best way to gain exposure to the equity market, investors with a higher risk profile can consider holding individual growth stocks that are fundamentally strong. One such TSX dividend stock is EQB (TSX:EQB).
Valued at $3.5 billion by market cap, EQB has already returned 250% to shareholders in the last decade after adjusting for dividends. The Canadian bank offers shareholders an annual dividend of $1.80 per share, indicating a forward yield of 2%. Moreover, these payouts have risen by 14.5% annually in the last 20 years.
Despite a tepid lending environment, EQB reported record revenue and pre-tax earnings in the fiscal second quarter (Q2) of 2024 (ended in April). The mid-cap challenger bank continues to benefit from margin expansion, higher non-interest revenue, increasing loans under management, and higher customer deposits.
It reported a net reduction in total GILs (gross impaired loans) from fiscal Q1 due to a 22% reduction in commercial banking GILs. EQB added 31,000 customers in Q2, ending the quarter with 457,000 customers, up 36% year over year.
Priced at 7.8 times forward earnings, EQB stock is quite cheap, given analysts expect adjusted earnings to expand by 19.5% annually in the next five years. Analysts remain bullish and expect the TSX stock to surge by 17% in the next 12 months.
The post CRA: Are You Eligible for the $496 GST/HST Refund in 2024? appeared first on The Motley Fool Canada.
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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends EQB. The Motley Fool has a disclosure policy.
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