# No HST rebate ... HST *bill* instead??



## branflakes (Sep 25, 2009)

I filed our taxes on time this year (as I do every year!). The main difference this year is my fiancee and I bought our first home in September and the odometer just rolled over 12 months of living together so we are a common law couple.

As such, I filed our taxes reflecting our relationship using turbotax. I received a $335 HST rebate and she received a letter stating the following:



> We have established that you are not eligible for the GST/HSTC for January 2011 to April 2011 for the following reason:
> 
> - your spouse or common-law partner has already applied for the credit
> 
> ...



That's all it says before it goes on to payment options. No details, no explanation...


She got a $3xx income tax refund and we weren't expecting her to get an HST cheque, but we really weren't expecting to get an HST bill!

I'm assuming since we were common law before December, the goverment assumes her last HST cheque shouldn't have went to her and they are now asking for that back with a crazy amount of interest (applied monthly?) ... but that's just a guess.

Any thoughts?


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## kcowan (Jul 1, 2010)

They are just asking for the money erroneously paid in 2011 to be returned. Since you qualified, she doesn't. Now they know and will suspend further payments to her.

Did you expect them not to ask for the money back?


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## branflakes (Sep 25, 2009)

What money back? We both got $100 each the first two payments since we were not common law. When I filed in March I mentioned we are common law as of late 2010. They then gave me $335 and we expected her to get nothing. Instead she gets a $190 bill. How does that work?


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## Farly (Aug 18, 2009)

When your marital status changes you are supposed to let the CRA know and they will adjust your payments. Since your status was common law on Dec 31, 2011 the adjustment was made. GST/HST credit payments on are based on your marital status at the time of payment.


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## branflakes (Sep 25, 2009)

Let me try walking this through

June 2010: $100 each
December 2010: $100 each
March: Filed taxes, stated common law
June 2011: $335 as a couple with a $190 HST bill for her.

This means her total HST transition benefit is $177 (half of the $335+100+100-190.5). If I didn't say we were common law we both would've received 3 payments of $100 ... So how does she get a bill?

Like I was saying, we were expecting the third payment to be $335 with no mystery bill. However, now that you mention it, we became common law before the cutoff date for the second payment, so if anything that $100 each should've been $335 as a couple. Are they trying to take back her $100 with interest?


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## the-royal-mail (Dec 11, 2009)

Are you able to call them and straighten this out? I don't think there's much we can do for you here to resolve this one. I would be interested to know what they say as it sounds like a misunderstanding.


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## stardancer (Apr 26, 2009)

branflakes said:


> Let me try walking this through
> 
> June 2010: $100 each
> December 2010: $100 each
> ...


Depending on what date you put down as c/l, her payment(s) were paid on an incorrect marital status, so they are asking for the part that she shouldn't have received back. They have adjusted your payments to reflect you as a couple. Because HST is a social benefit, there is no interest charged.

This will happen to GST, OST, and CTB benefits. Unfortunately, most people wait until completing their tax returns before declaring their change in marital status, when they should be completing a Change of Marital Status as soon as the change takes place.


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## branflakes (Sep 25, 2009)

Considering this rebate is supposed to be a maximum of $1000 for couples and $300 for individuals and the total received between the two of us is $735 minus $190.50 I'm still not sure I'm following you guys...


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## kcowan (Jul 1, 2010)

The clawback of her rebate is based on the effective date of your commonlaw relationship. What date did you use? We know it is sometime in 2010 and the exact date is needed to calculate things correctly.


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## branflakes (Sep 25, 2009)

kcowan said:


> The clawback of her rebate is based on the effective date of your commonlaw relationship. What date did you use? We know it is sometime in 2010 and the exact date is needed to calculate things correctly.


Oh I see. I just checked and we used mid-may 2010. I remember doing our taxes and saying "12 months? Oh hey, we're common law now!" Clearly this marriage/common-law thing isn't a big deal for us 

The June 2010 payment has an assessment date of May 31 and December 2010 assesses on November 30. They would've originally assessed us as single, so +$100(x2) for each of us.

Now that we've changed our marital status, they want her portion of the money back (though how did they calculate such an odd dollar value?). Does that mean I should be looking for a credit? We've been completely eligible and since we're a couple that should mean $1000?


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## I'm Howard (Oct 13, 2010)

My B in L died suddenly, got a letter askingfor the $61 back they had put intohis Bank Account.

He's Dead, I told the Rev Canada Guy, Oh, does that mean He won't pay?

I sent them the cheque

I had a hard time understanding him, those guys from Summerside 
have strong African accents?


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## Guban (Jul 5, 2011)

*GST credit vs HST transition rebate?*

I'm guessing there's been some confusion as to where the money is coming from. 

The $335 is part of Ontario's HST transition rebate, and is a temporary measure to help people in Ontario with the increased cost of HST on almost evvvvverything! (approx. $333 three times for married/CL people and $100 three times for singles if their income falls below a certain threshold).

The bill that the OP received sounds like it is for the federal GST/HST credit that reflects the new combined income of the CL couple and the fact that couples only receive one GST/HST credit. I understand that there is no interest charged on this bill.

Two different pools of money, both handed out by the federal GST office.


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