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

You can only receive the GST credit if you apply for it each year, even if you received it in the previous year. To apply for the payments, which we will mail out in July and October of 1997, and January and April of 1998, you have to complete Step 2 on your 1996 tax return.

Before you complete Step 2, be sure to read all of the information in this section. If you apply, we will let you know in July of 1997 the amount to which you are entitled, if any, and how we calculated your credit.

Note
To be eligible to receive a GST credit for a particular month, you have to be resident in Canada at the beginning of that month.

Who can apply

You can apply for the GST credit if, at the end of 1996, 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 1996, you:

• were confined to a prison or a similar institution, and had been there for more than six months during 1996; 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.

Note
You cannot claim the credit for your spouse or child who met either of these conditions at the end of 1996.

Number of children

You can claim a GST credit for each of your children who, at the end of 1996:

• was under 19 years of age;
• did not have a spouse;
• was not a parent; and
• either lived with you, 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.

Number of children	Income limit
0	$34,000
1	$36,000
2	$38,500
3	$40,500
4	$42,500
5 and more	apply

Note
These income limits are only guidelines to help you decide if you should apply. If you apply, we will send you a notice by the end of July 1997 to let you know the amount to which you are entitled, if any.

Calculating your GST credit

To find out how to calculate your GST credit, call our T.I.P.S. (Info-Tax) service. For more details, see the T.I.P.S. information in the forms booklet.